Delhi High Court upholds Centre’s notification requiring international employees to contribute to EPF regardless of income; Bar Council asked to revisit norms.
Delhi High Court Upholds Centre’s EPF Law
The Delhi High Court on Nov. 4, 2025, upheld the Centre’s notifications that require international employees — defined as foreign-passport holders working in India — to contribute to the Employees’ Provident Fund (EPF) regardless of their salary, while Indian employees remain covered only if their pay exceeds ₹15,000 per month. The bench said the government’s distinction is based on a “rational classification” and therefore within constitutional bounds.
The ruling comes against a backdrop of earlier conflicting decisions in India’s high courts: a 2024 Karnataka HC judgment had struck down the special provisions for international workers as arbitrary, triggering legal uncertainty for employers and multinationals. The Delhi HC’s decision now restores the Centre’s 2008/2010 notifications in its jurisdiction and sets up an important legal reference point for future challenges.
Employers with foreign staff should note the practical implications: companies must deduct EPF contributions and comply with EPFO reporting requirements for eligible international workers, even where the employee’s salary would otherwise be below the ₹15,000 threshold applicable to Indian nationals. Labour law specialists say the judgment will affect payroll accounting, employee benefits structuring and compliance costs for firms that rely on expatriate talent in India.
