The employer of an establishment to which EPF Scheme applies is required to send a consolidated return of international workers within 15 days of application, and a monthly return indicating workers qualifying to become members and leaving service. The return should include basic wage, retaining allowance, dearness allowance, and food concession details. The employer must send a ‘Nil’ return if there are no international workers. The EPFO reviews the progress based on the monthly return, and the employer is directed to state whether any international worker is employed or send a ‘Nil’ return.
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IW-1 is a monthly return that employers in India are required to file with the Employees’ Provident Fund Organization (EPFO) for their international workers. The IW-1 return must be filed in Form 5 within 15 days of the close of each month and includes details such as the names, nationalities, and Universal Account Numbers (UANs) of international workers who are eligible to become members of the EPF for the first time during the preceding month.
Additionally, the return must include declarations in Form 2 furnished by qualifying international workers, as well as a list of international workers who have left the employer’s service during the preceding month. Employers must also provide details of the basic wage, retaining allowance (if any), dearness allowance, and cash value of any food concession paid to each international worker.
It is crucial for employers to file accurate and timely IW-1 returns to ensure that their international workers can avail the benefits of the EPF scheme without any hassle. The EPFO reviews the progress based on the monthly return filed by the employer. If there are no international workers, the employer is required to send a ‘Nil’ return.
Step-by-Step Process to File the IW-1 Return
The IW-1 return for international workers in India is filed online through the EPFO’s Employer e-Sewa portal. Here is the step-by-step process to file the IW-1 return:
- Visit the Employer e-Sewa portal (https://unifiedportal-emp.epfindia.gov.in/epfo/).
- Log in to the portal using your employer credentials.
- Click on the “Monthly IW-1 (International Workers)” option under the “Monthly Contribution” tab on the dashboard.
- Enter the required details, such as the month and year for which the return is being filed and select the establishment and the international workers eligible to become EPF members.
- Upload the necessary documents, such as Form 5 and Form 2 declarations for each eligible international worker, along with the list of international workers who have left the employer’s service during the month.
- Verify the details and submit the return.
It is crucial for employers to file the IW-1 return accurately and within the due date to avoid penalties and ensure compliance with EPF regulations. Failure to file the IW-1 return for international workers within the due date can result in various consequences for the employer. These include:
- Legal action: The EPFO may take legal action against the employer for non-compliance with EPF regulations. This can result in fines, imprisonment, or both.
- Penalty: The EPFO can impose a penalty on the employer for not filing the IW-1 return on time. The penalty amount may vary depending on the period of delay and the number of international workers involved.
- Inconvenience to international workers: Non-filing of the IW-1 return can cause inconvenience to international workers who are eligible to become members of the EPF scheme. They may not be able to avail the benefits of the scheme, such as retirement savings and pension, due to the employer’s negligence.