Coverage & Withdrawal of PF accumulation of “International Workers” under the Employees Provident Fund (M&P) Act 1952.
1. Definition – International Worker
An International worker may be an Indian worker or a foreign national. - Any Indian employee working or having worked abroad in a country with which India has entered into a Social Security Agreement (SSA); or - Any foreigner working in India in an establishment where the Employees Provident Funds & Miscellaneous Provisions Act, 1952 is applicable.
(so all Expatatriate working in India are covered as an International Worker)
2. Status - Social Security Agreements (SSA)
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 equality of treatment and avoidance of double coverage.
As on 01.04.2011, three Social Security Agreements in respect of Belgium, Germany and Switzerland have been made effective from 1st September, 2009, 1st October, 2009 and 29th January, 2011 respectively. Apart from the above, SSAs have already been signed with France, the Netherlands, Czech Republic, Denmark, Hungary, Norway, Luxembourg, and Republic of Korea, but not yet made effective. Negotiations are at various stages with Canada, Quebec, Sweden, Australia, USA and Austria. Government level talks are on with many other countries where sizable numbers of Indian workers are employed.
3. Till the time the treaty is not notified in the official Gazette, most of the companies shall fall under the category of Non SSA Category. The day the treaty is notified, the International Worker will fall under the category of Excluded Employee (defined below)
{(f) "Excluded Employee" means an International Worker, who is contributing to a Social Security program of his/her country of origin, either as a citizen or resident, with whom India has entered into a Social Security Agreement on reciprocity basis and enjoying the status of detached worker for the period and terms, as specified in such an agreement:.}
For the companies falling under the Non SSA category presently, - an International Worker may withdraw the full amount standing to his credit in the Fund only on below conditions :-
(a) on retirement from service in the establishment at any time after the attainment of 58 years;
(b) on retirement on account of permanent and total disbility in capacity for work due to bodily or mental infirmity duly certified by the medical officer of the establishment, or where an establishment has no regular medical officer, by a registered medical practitioner designated by the establishment:
HOWEVER
One of the Regional website of EPFO (Uttar Pradesh) has stated - although not a formal agreement, there is a reciprocal arrangement between India and the NON SSA Category countries (Who have signed SSA with India and official Gazette is yet to be released) to settle the claims of the employees on completion of employment in the host country.
Basis above statement HR can initiate the PF withdrawal for the employees who have completed the services in India and have repatriated back to there home country. There is no need to strict to the point (a) and (b) as mentioned above. Withdrawal process will be same as for Indian employees.
Rgds..Kumar Anand
HR - SAMSUNG
From Korea
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171. Definition – International Worker
An International worker may be an Indian worker or a foreign national. - Any Indian employee working or having worked abroad in a country with which India has entered into a Social Security Agreement (SSA); or - Any foreigner working in India in an establishment where the Employees Provident Funds & Miscellaneous Provisions Act, 1952 is applicable.
(so all Expatatriate working in India are covered as an International Worker)
2. Status - Social Security Agreements (SSA)
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 equality of treatment and avoidance of double coverage.
As on 01.04.2011, three Social Security Agreements in respect of Belgium, Germany and Switzerland have been made effective from 1st September, 2009, 1st October, 2009 and 29th January, 2011 respectively. Apart from the above, SSAs have already been signed with France, the Netherlands, Czech Republic, Denmark, Hungary, Norway, Luxembourg, and Republic of Korea, but not yet made effective. Negotiations are at various stages with Canada, Quebec, Sweden, Australia, USA and Austria. Government level talks are on with many other countries where sizable numbers of Indian workers are employed.
3. Till the time the treaty is not notified in the official Gazette, most of the companies shall fall under the category of Non SSA Category. The day the treaty is notified, the International Worker will fall under the category of Excluded Employee (defined below)
{(f) "Excluded Employee" means an International Worker, who is contributing to a Social Security program of his/her country of origin, either as a citizen or resident, with whom India has entered into a Social Security Agreement on reciprocity basis and enjoying the status of detached worker for the period and terms, as specified in such an agreement:.}
For the companies falling under the Non SSA category presently, - an International Worker may withdraw the full amount standing to his credit in the Fund only on below conditions :-
(a) on retirement from service in the establishment at any time after the attainment of 58 years;
(b) on retirement on account of permanent and total disbility in capacity for work due to bodily or mental infirmity duly certified by the medical officer of the establishment, or where an establishment has no regular medical officer, by a registered medical practitioner designated by the establishment:
HOWEVER
One of the Regional website of EPFO (Uttar Pradesh) has stated - although not a formal agreement, there is a reciprocal arrangement between India and the NON SSA Category countries (Who have signed SSA with India and official Gazette is yet to be released) to settle the claims of the employees on completion of employment in the host country.
Basis above statement HR can initiate the PF withdrawal for the employees who have completed the services in India and have repatriated back to there home country. There is no need to strict to the point (a) and (b) as mentioned above. Withdrawal process will be same as for Indian employees.
Rgds..Kumar Anand
HR - SAMSUNG
From Korea
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Dear Anand, Thanks for your update the SSA has been implemented for France also. Good initiative by India to include IW under EPF and restriction on withdrawl.
From India, Bhubaneswar
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From India, Bhubaneswar
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Say, for example, if a foreigner without an SSA working in India completes their service in India before turning 58 years old, can they withdraw the PF amount? What is the procedure for withdrawal, and do they need an Indian bank account?
From India, Chennai
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From India, Chennai
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Hi friends,
This is Lakshmi Narayana from Vizag. Can anyone suggest to me if an international worker leaving his employment in India (Short Service) and he wants to withdraw his PF but he did not attain 58 years of age, is he eligible to withdraw PF? If so, can you share with me the supported document of the amended act?
From India, Anakapalle
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This is Lakshmi Narayana from Vizag. Can anyone suggest to me if an international worker leaving his employment in India (Short Service) and he wants to withdraw his PF but he did not attain 58 years of age, is he eligible to withdraw PF? If so, can you share with me the supported document of the amended act?
From India, Anakapalle
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Hello,
Attached is the Clarification on PF Deduction for Indian Employees (International Workers) Returning from a Foreign Country. Refer to www.simpliance.in to download all recent amendments and notifications.
From India, Bengaluru
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Attached is the Clarification on PF Deduction for Indian Employees (International Workers) Returning from a Foreign Country. Refer to www.simpliance.in to download all recent amendments and notifications.
From India, Bengaluru
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Dear All,
I have a few clarifications regarding IW workers' PF settlement:
1. Can a foreigner with SSA working in India withdraw PF after completing the service in India without attaining 58 years?
2. Is there any waiting period to claim the PF for IW? (Similar to the 60-day waiting period for normal employees)
3. Can he file a 10c claim? His service period is 3 years.
Please let me know the answers to the above queries.
Regards,
Hekarthick
From India, Coimbatore
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I have a few clarifications regarding IW workers' PF settlement:
1. Can a foreigner with SSA working in India withdraw PF after completing the service in India without attaining 58 years?
2. Is there any waiting period to claim the PF for IW? (Similar to the 60-day waiting period for normal employees)
3. Can he file a 10c claim? His service period is 3 years.
Please let me know the answers to the above queries.
Regards,
Hekarthick
From India, Coimbatore
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International worker , EPF notification .doc
EPF& EPS FOR INTERNATIONAL WORKER.Notifica tion.jpg