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EPFO clarifies the Interpretation of International Worker in EPF Scheme 1952

EMPLOYEE’S PROVIDENT FUND ORGANISATION

(Ministry of Labour & Employment, Govt. of India)

Head Office

Bhavishya Nidhi Bhawan,14 Bhikaji CamaPlace, New Delohi-110066

File No. IWU/7/(25)/2017/Clarification reg.Para 83/5366

Dated:08 June 2017

To,

All Addl.C.P.F.Cs (Zones),

All R.P.F.Cs- In Charge

Subject : Definition of “International Worker” as fgiven in Para 83(2)(ja)(a) of EPF scheme 1952 and para 43A(1)(viii)(a) of EPS 1995- Regarding 

Sir,

It has come to the notice 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 ofiices.

As per Para 83(2)(ja) “International Worker” Means:-

a) An Indian emplkoyee 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 of that country, by virtue of the eligibility gained or going to gain, under the said agreement.

a reading of the above definition clearly implies that 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 Social Security Agreement and (ii) he is eligible to avail the benefits under a social security programme of the said foreign country.

Hence, 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 EPF & MP Act  and Not of the International Worker under Para 83(2)(ja)(a) of the EPF Scheme, 1952.

Your Faithfully

(Dr. V.P.Joy)

Central PF Commissioner

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