NEW PENSION MATHS FOR FOREIGN EMPLOYEES
The labour ministry has changed the definition of pensionable salary for foreign employees, including Indian citizens working aboard. Pensionable salary of foreign or international employees
contributing to Employees Provident Fund Organization (EPFO) will now be average monthly pay drawn during the entire contributory period of service instead of the average of last 12 month's salary. The new definition is not applicable on domestic EPFO subscribers as they are already regulated by a ceiling of 6500 per month placed by employee pension scheme, 1995(EPS) on their pensionable salary. This means that the employer's contribution of 8.33% of eligible earning of the employee
to the EPS cannot exceed Rs. 6500 per month even if the calculated sum is higher. The ceiling does not exist for the international employee.
contributing to Employees Provident Fund Organization (EPFO) will now be average monthly pay drawn during the entire contributory period of service instead of the average of last 12 month's salary. The new definition is not applicable on domestic EPFO subscribers as they are already regulated by a ceiling of 6500 per month placed by employee pension scheme, 1995(EPS) on their pensionable salary. This means that the employer's contribution of 8.33% of eligible earning of the employee
to the EPS cannot exceed Rs. 6500 per month even if the calculated sum is higher. The ceiling does not exist for the international employee.
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