International Workers (from countries which do not have the Social Security Agreement with India) allowed to withdraw their EPF accumulation after attaining 58 years, subject to ceasing employment of EPF covered establishment

The Employees’ Provident Fund Organization has issued a clarification regarding final withdrawal of provident fund (“PF”) by International Workers under the Employees’ Provident Funds Scheme, 1952.

It is clarified that international workers (from countries which do not have the Social Security Agreement with India) are eligible for full withdrawal of their PF accumulation after attaining the age of 58 years, provided that they have ceased to be in the employment of an Employees’ Provident Fund (“EPF”) covered establishment.

Please note this Circular is not yet uploaded in the official website of the Employees’ Provident Fund Organization. We have come to know of it from other private source.

Source: Employees’ Provident Fund Organization

In our earlier news we have covered:

In a move to further simplify the clarification on the definition of ‘international worker’, the Employees Provident Fund Organisation (EPFO) has withdrawn its earlier Circular dated 8th June, 2017, and has re-issued a fresh clarification in this regard.

While the contents of the re-issued Circular dated 23rd June, 2017 remains the same majorly, the last paragraph has been amended to simplify the meaning and intent.

The re-issued Circular is re-casted and clarifies as below;

Background

There was a persisting confusion about Indian International Workers still being considered as International Workers on returning back to India, and certain offices were deducting PF accordingly.

Outcome basis the Circular dated 23rd June, 2017:

The Employees Provident Fund Organisation (EPFO) in a recent Circular (IWU/7/(25)/2017/Clarification reg. Para 83/5041) dated 23rd June, 2017, has withdrawn its previous circular (IWU/7/(25)/2017/Clarification reg. Para 83/5366) on the same issue dated 8th June, 2017. The EPFO by way of this recent clarification has clarified that Indian employees will be treated as International workers only when they fulfil the following conditions:

(i)            he has worked or is going to work in a foreign country with which India has entered into Social Security Agreement and

(ii)           he is eligible to avail the benefits under a social security programme of the said foreign country.

In effect, Indian Expatriate Employees, who have been an International Worker as per the definition given above and who comes back to work in India, will fall under the definition of Employee as per the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 and not of International worker under the Employees’ Provident Fund Scheme, 1952.

Source: The Employees Provident Fund Organisation