PROVIDENT FUND FOR INTERNATIONAL WORKERS

 With effect from 1^st November 2008 each and every International Worker (as defined in para 83 of the EPF Scheme, 1952), other than an ‘excluded employee’ is required to be a member of the Employees’ Provident Fund.

1. All foreign nationals employed in an establishment are to be enrolled as International Workers, with the exception of those who fall under the category of “excluded employee” on the basis of a “Certificate of Coverage” (COC) issued by a competent agency under a Social Security Agreement SSA with India. 

2. A detached International Worker contributing to the social security programme of the home country and certified as such by a Detachment Certificate for a specified period in terms of the bilateral Social Security Agreement – SSA signed between that country and India is an ‘excluded employee’ under these provisions.

3. A certificate of coverage (COC) or a detachment certificate is a document that must be obtained by        an        IW        so        as        to         avail    the            benefits           under the applicable SSA. A COC is issued in the employee’s home country by the social security authority in accordance with the provisions of the relevant SSA. The COC acts as a proof of detachment, pursuant to which, exemptions from the applicable social security compliances at the host country are allowed.

4. The contribution in respect of all IWs is payable on full salary, irrespective of where the salary is paid.

5. The employee will be treated as IW from the date of commencement of “Certificates of Coverage”. The member will continue to be an IW till the final settlement is made in accordance with provisions of the scheme.

6. The category of IWs must be flagged separately for identification for the purpose of compliance as well as settlement of their claims.

7. A separate register in respect of IWs may be maintained by each office.

8. Settlement of claim in respect of IWs:

As per notification dated 11.9.2010, an IW may withdraw, in accordance with para83, the full amount standing to his credit in the fund in the following circumstances only:

• On retirement after attaining the age of 58 years

• On retirement on permanent disability due to bodily or mental infirmity (includes TB, leprosy and cancer)

• On the ground as specified in the SSA

The “withdrawal benefit” under the Employees’ Pension Scheme, 1995 is available to those IWs who are covered under the provisions of SSA with India and not to other foreign IWs.

Presently SSA Agreement is signed for 20 countries by India and the detailed list is :

• Austria

• Australia

• Brazil

• Belgium

• Canada

• Czech

• Denmark

• Finland

• France

• Germany

• Hungary

• Japan

• Korea

• Luxembourg

• Netherlands

• Norway

• Netherlands

• Norway

• Portugal

• Quebec

• Sweden

• Switzerland