EPFO clarifies on PF deductions for Indian International Workers on returning back to India

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.

To put a rest to this confusion, the Employees Provident Fund Organisation (EPFO) in a recent Circular dated 8th June, 2017, 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 do not fulfill the above two conditions and who come back to work in India after having worked in a foreign country will fall under the definition of employee as per the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 and not International worker under the Employees’ Provident Fund Scheme, 1952

Source: Employees’ Provident Fund Organisation.

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