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Delhi High Court Ruling on International Worker Provisions under the Provident Fund law
This Alert summarizes a Delhi High Court ruling dated 4 November 2025[1], wherein the issue regarding the validity of International Worker provisions under the Provident Fund law was analyzed.
Petitions were filed before the Delhi High Court challenging the validity of special provisions for 'International Workers' introduced under the Employees’ Provident Fund Scheme, 1952 (EPF Scheme). The key issue was whether requiring foreign employees to contribute to Provident Fund (PF) without a salary threshold, while Indian employees earning above ₹15,000/month are exempt, constitutes discrimination under Article 14 of the Constitution. Additionally, the petitioners also argued that the withdrawal rules for International Workers, which only allow access to PF upon retirement at 58 years or in case of permanent incapacity, are arbitrary given their short employment duration in India.
In its analysis, the Court upheld the validity of the EPFO notifications, stating that the classification of International Workers is reasonable and justified based on the economic realities of their employment. The Court emphasized that Indian employees face greater economic pressures due to long-term contributions, while foreign employees' short-term stays warrant differential treatment.
The ruling also referred to previous judgments on the said issue and specifically disagreed with the Karnataka High Court’s ruling[2] which struck down Paragraph 83 of the EPF Scheme, noting that it did not address the economic realities and rationale for classification. Thus, the Court has reinforced the distinction between Indian and foreign workers as valid, while dismissing the challenges to the special provisions for International Workers and the demand notices issued by the EPFO.
[1] W.P.(C) 2941/2012 & W.P.(C) 6330/2021
[2] W.P. No.18486/2012 and others
For further details, please contact:
Sonu Iyer
People Advisory Services
Partner & Leader - India Region
Email: Sonu.Iyer@in.ey.com
Puneet Gupta
People Advisory Services
Partner
Email: Puneet1.Gupta@in.ey.com