Delhi HC upholds Centre’s EPF contribution rules for international employees
The Delhi High Court upheld the Centre’s notifications mandating that international employees must contribute to the Employees’ Provident Fund (EPF) regardless of income, while Indian employees are required to contribute only if their salary exceeds ₹15,000. The court dismissed SpiceJet's petition claiming the classification was discriminatory, ruling the distinction reasonable to prevent economic hardship for Indian workers.
The Delhi High Court, in a bench led by Chief Justice D.K. Upadhyay and Justice Tushar Rao Gedela, upheld the Centre’s September 2009 and October 2010 notifications requiring all international employees working in Indian establishments covered under the EPF scheme to contribute to the EPF irrespective of their income. Indian employees, by contrast, are mandated to contribute only if their monthly salary is above ₹15,000. This classification was challenged by SpiceJet, which argued it was discriminatory against foreign workers and not authorized by the EPF Act. The court rejected this argument, observing that the legal distinction was based on rational grounds: international employees typically work in India for shorter durations (2 to 5 years) and do not face the same economic hardship as Indian employees who usually have longer employment tenures. The court maintained that mandating all Indian employees to contribute irrespective of salary could impose a harsh financial burden. It concluded the classification did not violate the fundamental right to equality and served the legitimate goal of ensuring social security via the EPF scheme. Thus, the ruling affirmed the government's authority to differentiate contribution requirements between international and Indian employees within the social security framework.
