International workers in India must contribute to EPF: Delhi High Court reaffirms mandatory compliance

In a significant ruling delivered on 4 November 2025, the Delhi High Court in SpiceJet Ltd. v. Union of India & Ors., W.P.(C) 2941/2012, has put to rest a long-running debate around the EPF obligations of foreign nationals working in India. The Court has held unequivocally that every international worker employed by an Indian establishment is required to contribute to the Employees’ Provident Fund, unless that individual is covered under a social security agreement (SSA) between India and their home country.

The petitioners had argued that the EPFO’s 2008 and 2010 notifications which expanded the definition of “employee” to include foreign nationals were discriminatory, particularly because high-earning Indian employees can opt out of mandatory contributions while foreign employees cannot. The Court rejected this argument outright, noting that the distinction is intentional and grounded in policy. India’s social-security architecture aims to ensure parity for foreign nationals working here, while maintaining consistency with international treaty commitments. As such, the inclusion of foreign employees in mandatory PF coverage is neither arbitrary nor unfair.

The Court was equally clear that employers cannot avoid compliance by pointing to the short duration of a foreign employee’s posting or the existence of overseas savings or retirement arrangements. Once a foreign national qualifies as an “international worker” under the EPF scheme, the employer bears a non-negotiable statutory duty to enrol them and deposit contributions in accordance with the law. The only exception applies where a valid SSA exists and the employee provides the requisite certificate of coverage.

For employers, the message is direct: EPF compliance for foreign nationals is not optional, and assumptions based on tenure, seniority or salary bands can no longer be relied upon. Organisations engaging expatriates whether for long-term roles or short project-based assignments should revisit their on boarding procedures, payroll systems and HR compliance workflows. It is essential to ensure that international-worker status is identified upfront, certificates under SSAs are collected where applicable, and contributions are deposited accurately and on time.

The ruling reinforces that lapses in compliance could expose employers to assessments, penalties, or litigation, as illustrated by SpiceJet’s own experience. A thorough, documented process at the entry stage paired with precise payroll handling is now critical for avoiding disputes.