Uncapped and Locked-In: The Constitutional Fate of ‘International Workers’ under Indian Provident Fund Law after SpiceJet (Delhi HC, 2025), LG Electronics (Supreme Court, 2026) and the EPF Scheme, 2026

Author

Akshat Nigam , Arushi Rajagopala, Lavya Bhasin, Yohann Titus


Abstract

 India's provident fund system treats foreign nationals working in Indian establishments, and Indian workers posted to countries with which India has a social security agreement (SSA), as a distinct category of ‘International Workers’. Since 2008, Paragraph 83 of the Employees' Provident Fund Scheme 1952 has required such workers to contribute on their entire wages, with no ceiling, and has restricted withdrawal of accumulations. This article examines the constitutionality of that framework under Article 14 in light of three conflicting High Court decisions: Bombay (2019), Karnataka (2024) and the Delhi High Court's Division Bench in SpiceJet (4 November 2025). It then analyses the developments of 2026: the Supreme Court's notice in LG Electronics v Union of India (12 March 2026), the commencement of the Code on Social Security 2020, the notification of the Employees' Provident Funds Scheme 2026, which supersedes the 1952 Scheme but carries the International Worker framework forward, and the increase of the wage ceiling to ₹25,000. Using a doctrinal method, the article argues that the Delhi High Court's ‘economic duress’ rationale is a defensible justification for the absence of a contribution ceiling, although the passport-based class is imperfectly aligned with it. The same rationale, however, does not support the withdrawal restriction applied to workers from non-SSA countries, which the 2026 Scheme makes harder to defend by allowing domestic members to withdraw at 55 and on migration abroad. The article proposes that the Supreme Court uphold the contribution rule while reading down the withdrawal restriction, and identifies legislative options for the Union.


Keywords

International Workers; Employees' Provident Fund; Article 14; Social Security Agreements; Code on Social Security 2020



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References


Constitutional Provisions and Statutes

  • Constitution of India, art 14.
  • Employees' Provident Funds and Miscellaneous Provisions Act 1952 (Act 19 of 1952).
  • Code on Social Security 2020 (Act 36 of 2020).

Delegated Legislation and Notifications

  • Employees' Provident Fund Scheme 1952, para 83, inserted by Notification GSR 706(E) (1 October 2008) and substituted by Notification GSR 148 (3 September 2010).
  • Employees' Provident Funds Scheme 2026, Notification G.S.R. 525(E) (Ministry of Labour and Employment, 29 June 2026).
  • Social Security (Central) Rules 2026, Notification G.S.R. 344(E) (Ministry of Labour and Employment, 8 May 2026).
  • Ministry of Labour and Employment, S.O. 5319(E) (21 November 2025).

Cases

  • Chiranjit Lal Chowdhuri v Union of IndiaAIR 1951 SC 41.
  • E P Royappa v State of Tamil Nadu(1974) 4 SCC 3.
  • LG Electronics v Union of India(SC, notice issued 12 March 2026).
  • Ram Krishna Dalmia v Justice S R TendolkarAIR 1958 SC 538.
  • Sachin Vijay Desai v Union of IndiaWP No 1846 of 2018 (Bombay HC, 7 August 2019).
  • Shayara Bano v Union of India(2017) 9 SCC 1.
  • Spice Jet Ltd v Union of India2025:DHC:9670-DB (Delhi HC, 4 November 2025).
  • State of West Bengal v Anwar Ali SarkarAIR 1952 SC 75.
  • Stone Hill Education Foundation v Union of IndiaWP No 18486/2012 and connected matters (Karnataka HC, 25 April 2024).
  • Union of India v N S Rathnam and Sons(2015) 10 SCC 681.

Official and Institutional Sources

  • Employees' Provident Fund Organisation, Handbook on Social Security Agreements(Ministry of Labour, Government of India).

Secondary Sources and Commentary

  • Abraham AP, Sinha A and Rachchh P, 'EPF Scheme, 2026 and International Workers: New Framework – Old Questions' (Lakshmikumaran & Sridharan, Legal 500, 21 September 2026).
  • AZB & Partners, 'Enhancement of PF Wage Ceiling to INR 25,000' (Legal 500, 23 September 2026).
  • Bar & Bench, 'Should foreign employees in India contribute to EPF? Supreme Court to examine' (12 March 2026).
  • India Briefing, 'India–UK Social Security Pact Takes Effect July 15, 2026'.
  • JSA, 'Karnataka HC strikes down the applicability of employees' provident fund benefits to international workers' (JSA Prism, 2024).
  • KPMG, 'India – Delhi High Court Upholds Constitutional Validity of Provident Fund Contribution for International Workers' (Flash Alert 2025-257).
  • Mishra B, 'SC to hear challenge against EPF rules governing international workers' Business Standard(12 March 2026).
  • Trilegal, 'Labour and Employment Quarterly Milestones (October–December 2025)' (Lexology, 12 February 2026).
  • 'Expat PF Rules: Balanced in Law, Unbalanced in Effect' (LiveLaw).
  • SCC Online Blog, 'Delhi High Court upholds EPF Contributions on Actual Wages for International Workers' (18 December 2025).
  • SCC Online Blog, 'Corrigendum to Code on Social Security, 2020 Enforcement Dates' (24 December 2025).

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