International workers (IW) are entitled to a variety of benefits under the Employees Provident Fund (EPF) and the Employee Pension Scheme (EPF). Indians working in a foreign country with which India has signed a Social Security Agreement (SSA), as well as foreign nationals working in India in a firm covered by the EPF & MP Act, may be considered IWs if they meet the EPF Scheme’s specific conditions.
India has signed bilateral SSAs with 20 countries to benefit migrant workers: Belgium, Germany, Switzerland, Denmark, Luxembourg, France, South Korea, Netherlands, Hungary, Finland, Sweden, Check Republic, Norway, Austria, Japan, Quebec, Portugal, and Brazil.
Contribution
According to the EPFO Brochure on International Workers, Indian employees who move to work in an SSA country can obtain a Certificate of Coverage (COC) from the EPFO if they contribute to a contributory pension scheme in India. The COC will exempt such workers from contributing to social security in the SSA country. However, if you relocate to a non-SSA country, you may be required to contribute to social security in both India and the country where you work. Citizens of an SSA country with a COC issued by his/her home country are excluded, as are Singapore nationals who contribute to their country’s social security system in accordance with the India Singapore CECA 2005.
EPF benefits
IWs can make a full withdrawal from their EPF accounts in case of retirement, permanent or total incapacity to work and mental infirmity. Members covered under SSA can withdraw the full amount on ceasing employment.
EPS benefits
After serving for more than ten years, an IW is eligible for the EPS pension. An IW from an SSA country may withdraw if his total service time is less than ten years. After serving for more than ten years, he or she is eligible for an early pension at the age of 50. If an IW dies, his or her survivors are entitled to a pension.
