How Do International Workers Handle EPF Contributions and Withdrawals?

Dear Seniors, With reference to EPF for international workers (other than the countries entered into S.S.A.), kindly advise on the following:

1. EPF contribution for international workers

2. Withdrawal procedure

Thanks & regards,

For employees in countries other than SSA countries, the EPF contribution will be applicable as per the Notification. You can refer to the FAQ on the EPF website for detailed information on the matter.

EPF Withdrawal Conditions

The withdrawal from the EPF Fund is allowed in such cases after the completion of 58 years of age or when the employee is permanently disabled or suffering from serious diseases like Cancer, TB, and Leprosy, etc. The EPS Fund cannot be withdrawn. However, in cases where Indian workers in the member country are allowed to withdraw from the Pension Fund, employees in India may also be eligible for such withdrawals.

Regards,
Amit

I have a few questions:

1. Is the contribution based on Basic or Gross salary?

2. What happens if the worker's visa is not renewed, or if he wants to resign and return to his hometown?

3. Could you please explain the withdrawal procedure?

Kindly advise.

Please find attached some materials that would be helpful in managing the subject. For further procedures, you should get in touch with the concerned PFO.

Regards,
Kumar S.

In continuation of the above-mentioned factors, my query is: as per RBI norms, if an International Worker does not have a valid visa, he/she cannot maintain a bank account in India in his individual capacity. How will he/she get back the amount of contribution once the International Worker goes back to his country? After resignation, his visa also expires. Any comments, please.

Thank you,

Yes, you are correct. Actually, the government didn't have any clear-cut instructions in the matter as the scheme provisions came not long ago. But as time progressed, this issue became important as a few expats whose contracts expired and who also completed 58 years of age wished to get back their contribution. To overcome the problem of not being able to continue with their Bank Account in India, the government has only this month come with an amendment in the EPF Scheme on 05.10.2012 in Para 72 sub-Para 2. Through this amendment, the amount can now be claimed by such an international worker either through his Bank account if such an arrangement exists on the date of withdrawal or through the employer. This will bring relief as well as clarity on the matter you had raised.

Sincerely, Amit Kumar

Attached is the press release in the Economic Times, which states that expats may be in a position to withdraw PF before attaining the age of 58 only for the countries where the Government of India (GOI) has a Social Security Agreement (SSA).

Please comment!

Best wishes,

Subject: EPF Claim Eligibility for Expats

Hello,

I am an expat working in India and was being paid in my home country. My company paid PF on my behalf for both employee and employer contributions. Am I eligible to claim the PF when I leave the company since I did contribute to the PF?

Thanks

Subject: EPF Claim Eligibility for Expats

Hello,

I am an expat working in India and was being paid in my home country. My company paid PF on my behalf for both employee and employer contributions. Am I eligible to claim the PF when I leave the company since I did not contribute to the PF?

Thanks

If the PF contribution for your employment in India has been paid by your employer, you can opt for the withdrawal of the Provident Fund only. However, for that, you need to be a citizen of a country with which India has entered into a social security agreement. The list of such countries is available on the website of EPF India, so check if you belong to any such country.

If you do not belong to such a group of countries, then you'll be eligible to withdraw your money only after reaching the age of 58 years or in case of total and permanent disability. Your PF will continue to earn interest until that period.

Dear Sir,

I am working in a Japanese organization and want to know the procedure for PF withdrawal for Japanese individuals in Haryana. Expats come to India for a duration of 3-5 years, and after completion of their assignment, they return to their home country and close their bank accounts before departing. Can you please advise me on how to proceed with the forms for PF withdrawal considering they do not have a bank account in India? The UAN is already activated.

Thank you.

EPF Withdrawal for Non-SSA Countries

I am afraid that Japan and India do not have a Social Security Agreement (SSA), so you may not be able to withdraw your PF. However, you can still make an application as there have been cases where the Department has granted withdrawals to citizens of non-SSA countries. If you do not have a bank account in India, there is a procedure in place where you can provide details of your overseas bank account, and the money will be sent to you in foreign currency, also in accordance with FEMA Regulations.

Thank you.

Dear Sir,

I checked on the EPFO website, and Japan is not mentioned in the list of SSA countries. However, when I searched on Google, I found two attached files related to the SSA signed by India and Japan in November 2012. I am confused and unable to understand if this information is correct or not.

I kindly request you to advise me on this matter.

Thank you.

Dear Seniors,

Please advise me on my query above if you have any information regarding the SSA between India and Japan.

Dear, I had a meeting with the PF commissioner and discussed with them the contributions of international workers. The EPF and EPS deductions will be based on their Basic+DA, and the wage ceiling is not applicable in the case of international workers. EPF and EPS will be deducted from their full amount (Basic+DA).

For example, if an international worker's Basic + DA salary is Rs 25,000, then EPF and EPS contributions will be calculated on Rs 25,000, not on the ceiling of Rs 15,000/-

Dear Friends,

Can anyone suggest the International Worker PF withdrawal form? Is it Form 19 (with Aadhar / Non-Aadhar) like a regular form?

Regards,
PBS KUMAR

Hi,

I am an Australian passport holder with OCI. I have returned to India permanently and am now employed in India. I have a few queries:

1. If a passport holder of another country is directly employed by an organization in India, will he be classified as an International Worker?
2. If the answer to the above is yes, then what percentage of the employer contribution should go towards the pension?
3. As I am going to stay permanently in India, what are the provisions for withdrawal?

Dear Sir,

I am working in a Japanese organization and want to know the procedure for PF withdrawal for a Japanese individual in Haryana. Expats come to India for a duration of 3-5 years, and upon completion of their time here, they return to their home country and close their bank accounts before departure.

Kindly advise me on how to process the necessary forms for PF withdrawal for individuals who do not have a bank account in India. The UAN is activated, and there is a Social Security Agreement (SSA) between Japan and India.

Regards,