Hello experts, I have quit my MNC job after working for 7 years as an IW. I was treated as an IW since I am a USC with an OCI card. However, I have returned to India for good and have no plans of going back in the foreseeable future.
As an IW, the EPF and EPS contributions were made on the actual salary (not restricted to 15k). Now that I am out of a job and still deciding on my next move, I have a few clarifications:
Chances of Retrieving EPF and EPS Balance
1. What are the chances of getting back the EPF and EPS balance from EPFO? The request is still pending, and they are seeking clarification on my IW status and higher contributions.
Eligibility for Higher Pay with Future Employment
2. If I transfer PF to my future job and work for 3+ more years (total 10 years under EPS), will I be eligible to get a higher pay as the contributions were done on the actual salary? In that case, will it be an average of the last 60 months' pay (pensionable salary)?
Impact of Starting Own Firm on PF and EPS
3. In an extreme case, if I decide not to work but start my own firm, will I stand to lose my PF and EPS due to being an IW? Are there any cases like this?
Thank you in advance for your replies and advice.
Regards, Mahesh
From India, Bengaluru
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1As an IW, the EPF and EPS contributions were made on the actual salary (not restricted to 15k). Now that I am out of a job and still deciding on my next move, I have a few clarifications:
Chances of Retrieving EPF and EPS Balance
1. What are the chances of getting back the EPF and EPS balance from EPFO? The request is still pending, and they are seeking clarification on my IW status and higher contributions.
Eligibility for Higher Pay with Future Employment
2. If I transfer PF to my future job and work for 3+ more years (total 10 years under EPS), will I be eligible to get a higher pay as the contributions were done on the actual salary? In that case, will it be an average of the last 60 months' pay (pensionable salary)?
Impact of Starting Own Firm on PF and EPS
3. In an extreme case, if I decide not to work but start my own firm, will I stand to lose my PF and EPS due to being an IW? Are there any cases like this?
Thank you in advance for your replies and advice.
Regards, Mahesh
From India, Bengaluru
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Hello Mahesh,
It's great to hear from you. To answer your questions:
1. Getting Back the EPF and EPS Balance: As an International Worker (IW) who has worked in India, you are entitled to withdraw your Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) balance. The EPFO may be seeking clarification on your IW status and higher contributions due to procedural requirements. Here's what you can do:
- Reach out to your previous employer and clarify the IW status and your contributions.
- Submit the required documents to prove your status.
- Once the clarification is provided, your withdrawal request should be processed.
2. Transfer of PF to Future Job: If you work for an additional 3 years, totaling 10 years under EPS, you will become eligible for a higher pension pay. This is because the pension is calculated based on the average of the last 60 months' pay (pensionable salary). So, yes, your pension will be calculated on the higher side because of your contributions made on the actual salary.
3. Starting Your Own Firm: Even if you decide to start your own firm, you won't lose your PF and EPS. As per the EPF scheme, you can withdraw your PF after two months of unemployment. But, if you decide to start your own firm, you can continue your PF account, but you would need to contribute both the employee's and the employer's share. For EPS, since you have already crossed the 10-year threshold, you are eligible for the scheme.
Remember 🤞: The laws and regulations might change, so it's always advisable to check the latest updates from the EPFO website or consult a financial advisor for personalized advice.
Hope this helps, and best of luck with your future endeavors!
From India, Gurugram
Acknowledge(0)Amend(0)
It's great to hear from you. To answer your questions:
1. Getting Back the EPF and EPS Balance: As an International Worker (IW) who has worked in India, you are entitled to withdraw your Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) balance. The EPFO may be seeking clarification on your IW status and higher contributions due to procedural requirements. Here's what you can do:
- Reach out to your previous employer and clarify the IW status and your contributions.
- Submit the required documents to prove your status.
- Once the clarification is provided, your withdrawal request should be processed.
2. Transfer of PF to Future Job: If you work for an additional 3 years, totaling 10 years under EPS, you will become eligible for a higher pension pay. This is because the pension is calculated based on the average of the last 60 months' pay (pensionable salary). So, yes, your pension will be calculated on the higher side because of your contributions made on the actual salary.
3. Starting Your Own Firm: Even if you decide to start your own firm, you won't lose your PF and EPS. As per the EPF scheme, you can withdraw your PF after two months of unemployment. But, if you decide to start your own firm, you can continue your PF account, but you would need to contribute both the employee's and the employer's share. For EPS, since you have already crossed the 10-year threshold, you are eligible for the scheme.
Remember 🤞: The laws and regulations might change, so it's always advisable to check the latest updates from the EPFO website or consult a financial advisor for personalized advice.
Hope this helps, and best of luck with your future endeavors!
From India, Gurugram
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EPF& EPS FOR INTERNATIONAL WORKER.Notifica tion.jpg
PF & Pension Amdmt Scheme 2010 for IW.pdf
Employee Pension Scheme, 1995.doc