The Employee's Provident Fund Organization ('EPFO'), Ministry of Labour & Employment, Govt. of India, vide its recent Circular being File No. IWU/7/(25)/2017/ Clarification reg. Para 83/536670 dated June 08 2017, issued to all central and regional provident fund commissioners notified a clarification regarding definition of the term "International Worker" as given in Para 83(2)(ja)(a) of Employee Provident Fund Scheme 1952 (the 'Scheme') and Para 43A(1)(viii)(a) of the Employees' Pension Scheme 1995.
The Government of India, through its initiative for the benefit of both the employers and employees, has entered into Agreement with several countries to ensure that the employees of home country who do not remit contribution in that country, get the benefit of totalization period for deciding the eligibility for pension, may get the pension in the country where they choose to live, and the employers are saved from making double social security contributions for the same set of employees. The EPFO accordingly, has been authorized to issue the Certificate of Coverage to the employees posted to the countries having signed Agreement with the Government of India.
As per Para 83(2)(ja)(a) of the Scheme an "International Worker" means an Indian employee having worked or going to work in a foreign country with which India has entered into a security agreement and being eligible to avail the benefit under a social security agreement (SSA) of that country, by virtue of the eligibility gained or going to gain, under the said SSA.
The EPFO noted that Indian international worker on coming back to India are continued to be considered as International Worker and PF deductions are made accordingly by certain offices. However, in view of the definition stated above, an Indian employee will be treated as International Worker only when
(i) he has worked or going to work in a foreign country with which India has entered into SSA,
and
(ii) he is eligible to avail the benefits under a social security programme of the said foreign country.
Hence, it was clarified by the EPFO that Indian expatriate employees who do not fulfill the aforesaid 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 given in section 2(f ) of the Employees' Provident Fund & Miscellaneous Provisions Act and not of the definition of an International Worker provided in Para 83(2)(ja)(a) of the Scheme.
Footnote
70 http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/70 http://www.epfindia.com/site_docs/PDFs/Circulars/Y2017- 2018/IWU_Def_IntWorkers_5366.pdf
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