Skip to main navigation

Working in India - Indian social security - EY - India

Working in India

Indian social security

  • Share

The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) governs social security in India.  The Ministry of Labour and Employment had issued notifications (in October 2008), extending the applicability of the Indian Provident Fund Scheme and Pension Fund Scheme to a category of employees called “International Workers”.

An expatriate who does not hold an Indian passport and is employed with a covered establishment (employer) in India is considered as an “international worker.”

However, an “international worker” who is contributing to a social security program of his/her home country with whom India has entered into a Social Security Agreement (SSA) may not be required to contribute to the Provident Fund in India on the satisfaction of specified conditions set out in the relevant SSA.

Key recent developments:

  • Withdrawal of the benefits –
  • International Worker can withdraw the full amount standing in his Employees’ Provident Funds Scheme (EPF) only when he retires or reaches the age of 58 years, whichever is later, or on account of permanent and total incapacity. However, in respect of members covered under a SSA, the withdrawal may be made on such grounds as may be specified in such an SSA.
  • Withdrawal benefit under Employees’ Pension Scheme (EPS ) would not be available to international workers for contributory service less than 10 years. 
  • Removal of the erstwhile cap of Rs 6,500 on the “monthly pay” to compute the amount of employer’s contribution allocated toward;
  • Contributions to both Provident Fund and Pension Fund are payable in respect of the total salary earned by an International Worker, irrespective of where the salary is paid;
  • There is no minimum period of days of stay in India to trigger Provident Fund obligations.

Status on Social Security Agreements with various countries


S. No. Country Name Signed Effective/Notified

1.

Belgium

Yes

Yes

2.

Germany

Yes

Yes

3.

France

Yes

Yes

4.

Switzerland

Yes

Yes

5.

Denmark

Yes

Yes

6.

Luxembourg

Yes

Yes

7.

Netherlands

Yes

Yes

8.

South Korea

Yes

Yes

9.

Hungary

Yes

No

10.

Czech Republic

Yes

No

11.

Finland

Yes

No

12.

Norway

Yes

No

13.

USA

No

No

14.

United Kingdom

No

No

15.

Canada

No

No

16

Australia

No

No

17.

Japan

No

No

 


<< Previous |Next >>

Inside

Related reading

Contacts

  • Sonu Iyer  
    Tax Partner & National Leader
    Human Capital Services
    Tel: +91 11 66233160
Back to top