Hi
I am on depuatation to US from my India firm. I get my salary in US, so there is no deposit to PF account.
It has been about 3 years and I might continue to be here for atleast 1.5 more years.
Can you pls let me know what would happen to my PF account? Will it go in-active? Will I not earn interest? Is there a way I can deposit some amount to keep it active?
Thanks and rgds
Parikshit Gandhi
From United States, Irving
I am on depuatation to US from my India firm. I get my salary in US, so there is no deposit to PF account.
It has been about 3 years and I might continue to be here for atleast 1.5 more years.
Can you pls let me know what would happen to my PF account? Will it go in-active? Will I not earn interest? Is there a way I can deposit some amount to keep it active?
Thanks and rgds
Parikshit Gandhi
From United States, Irving
Dear Parikishit,
Indian has eight Social Security Agreements in respect of Belgium, Germany, Switzerland, Denmark,Luxembourg, France, South Korea and the Netherlands have been made effective from 1st September, 2009, 1st October, 2009, 29th January, 2011, 1st May, 2011, 1st June, 2011, 1st July, 2011, 1st November,2011 and 1st December, 2011 respectively.
A Social Security Agreement is a bilateral instrument to protect the social security interests of workers posted in another country. Being a reciprocal arrangement, it generally provides for avoidance of double coverage.
SPECIAL PROVISIONS FOR INTERNATIONAL WORKERS
An International Worker (IW) may be an Indian worker or a foreign national.
International Worker means: -
- Any Indian employee having worked or going to work in a foreign country with which India has entered into a social security agreement and being eligible to avail the benefits under social security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement;
- An employee other than an Indian employee, holding other than an Indian Passport, working for an establishment in India to which the EPF & MP Act, 1952 applies;
Merely holding the COC does not make an employee an International Worker. He becomes IW only after being eligible to avail the benefits under social security programme of any country. After obtaining COC, the employee is exempted from contributing to the social security systems of the foreign country with whom India has SSA, hence he is not eligible to avail the benefits under the social security programme of that country.
Whether PF rules will apply to an employee if his salary is paid outside India?
Yes, the provisions will apply irrespective of where the salary is paid. The PF contributions are liable to be paid on wages DA, and Retaining Allowance, if any, payable to the employee by establishment in India.
Generally a Social Security Agreement covers three provisions. They are:
a) Detachment: Applies to employees sent on posting in another country, provided they are complying under the social security system of the home country.
b) Exportability of Pension: Provision for payment of pension benefits directly without any reduction to the beneficiary choosing to reside in the territory of the home country as also to a beneficiary choosing to reside in the territory of a third country.
c) Totalisation of Benefits: The period of service rendered by an employee in a foreign country is counted for determining the "eligibility" for benefits, but the quantum of payment is restricted to the length of service, on pro-rata basis.
From India, Mumbai
206Indian has eight Social Security Agreements in respect of Belgium, Germany, Switzerland, Denmark,Luxembourg, France, South Korea and the Netherlands have been made effective from 1st September, 2009, 1st October, 2009, 29th January, 2011, 1st May, 2011, 1st June, 2011, 1st July, 2011, 1st November,2011 and 1st December, 2011 respectively.
A Social Security Agreement is a bilateral instrument to protect the social security interests of workers posted in another country. Being a reciprocal arrangement, it generally provides for avoidance of double coverage.
SPECIAL PROVISIONS FOR INTERNATIONAL WORKERS
An International Worker (IW) may be an Indian worker or a foreign national.
International Worker means: -
- Any Indian employee having worked or going to work in a foreign country with which India has entered into a social security agreement and being eligible to avail the benefits under social security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement;
- An employee other than an Indian employee, holding other than an Indian Passport, working for an establishment in India to which the EPF & MP Act, 1952 applies;
Merely holding the COC does not make an employee an International Worker. He becomes IW only after being eligible to avail the benefits under social security programme of any country. After obtaining COC, the employee is exempted from contributing to the social security systems of the foreign country with whom India has SSA, hence he is not eligible to avail the benefits under the social security programme of that country.
Whether PF rules will apply to an employee if his salary is paid outside India?
Yes, the provisions will apply irrespective of where the salary is paid. The PF contributions are liable to be paid on wages DA, and Retaining Allowance, if any, payable to the employee by establishment in India.
Generally a Social Security Agreement covers three provisions. They are:
a) Detachment: Applies to employees sent on posting in another country, provided they are complying under the social security system of the home country.
b) Exportability of Pension: Provision for payment of pension benefits directly without any reduction to the beneficiary choosing to reside in the territory of the home country as also to a beneficiary choosing to reside in the territory of a third country.
c) Totalisation of Benefits: The period of service rendered by an employee in a foreign country is counted for determining the "eligibility" for benefits, but the quantum of payment is restricted to the length of service, on pro-rata basis.
From India, Mumbai
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HC All - Trainees not covered for PF -2010.pdf
PF Ledger.xls