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International Worker

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FAQ'S on Provident Fund for International Worker

  1. 1. Who is an International Worker (IW) as per the EPF Act?
    1. A. An International Worker (IW) is defined as any individual employed by a foreign employer in India, subject to registration with the Employees' Provident Fund Organization (EPFO). Additionally, an Indian employee working overseas falls under this category if their employment is governed by a Social Security Agreement (SSA) between India and the respective foreign country.
  2. 2. What is a Social Security Agreement (SSA)?
    1. A. A Social Security Agreement is a bilateral pact between countries to protect the social security rights of workers abroad. It ensures equal treatment and prevents double coverage, streamlining benefits for individuals working internationally.
  1. 3. Are Indian employees seconded overseas relieved from participating in the Social Security Scheme of the host nation?
    1. A. Indian employees who are assigned to work overseas are relieved from the obligation of contributing to the Social Security Scheme of the foreign nation under the following conditions:
      1. a. Presence of a Bilateral Social Security Agreement (SSA) between India and the respective foreign country.
      2. b. If the Indian worker successfully secures a Certificate of Coverage (COC) from the Employees' Provident Fund Organisation (EPFO).
  2. 4. If Indian workers are assigned to a foreign nation lacking a Social Security Agreement (SSA) with India, would they be required to participate in the Employees' Provident Fund (EPF) scheme?
    1. A. Absolutely, without a bilateral Social Security Agreement (SSA) in place with the respective foreign nation, the Indian employee must fulfill contributions towards both the Provident Fund (PF) in India and that of the foreign country.
  3. 5. If an employee doesn't get COC from EPFO, do they still need to contribute to EPF?
    1. A. Absolutely, failing to secure a Certificate of Coverage (COC) from the EPFO means the Indian employee must fulfill both PF contributions in India and those mandated by the foreign country.
  4. 6. Is there a provision for foreign nationals to be excluded from contributing to the Provident Fund (PF)?
    1. A. Non-resident workers with valid Indian work permits, contributing to their home country's pension scheme, are exempt from Indian EPF contributions if:
      1. a. Their home country has an SSA with India.
      2. b. They provide a Detachment Certificate from their home country's Social Security Office confirming their contributions there.
  5. 7. Who is a ‘Detached Worker’
    1. A. An expatriate employee, covered under a bilateral Social Security Agreement between their home country and India, and relieved from mandatory Provident Fund contributions within India for the specified duration outlined in the agreement, is classified as a 'Detached Worker' for compliance purposes within the host country (EPFO).
  6. 8. In case an IW completes his/her assignment and returns to India, will he/she continue to be considered an IW?
    1. A. Absolutely. Similar considerations apply to employees working abroad on temporary assignments. Upon their return to India post the completion of their overseas stint, they revert to the status of Indian employees. Consequently, they are mandated to contribute towards the Employee Provident Fund (EPF) in accordance with the stipulations laid out in the Act.
  7. 9. What is the maximum salary limit for an Individual Worker (IW) under which both the employer and employee contribute to the Provident Fund (PF) and Employee Pension Scheme (EPS)?
    1. A. Salary limits are non-existent. EPF and EPS contributions are calculated based on total wages.
  8. 10. What is the duration of eligibility for an Indian employee to maintain their designation as an "Overseas Worker"?
    1. A. The designation of "Global Employee" is conferred upon an Indian worker solely due to their employment in a nation with which India has established a Social Security Agreement (SSA). This status remains in effect until the individual ceases to receive benefits from the Social Security Program outlined within the SSA.

*Refer the FAQs on withdrawals for applicable terms and conditions

FAQ'S on Provident Fund Contributions FAQ'S on Provident Fund Withdrawals