EPFO – Social Security for International Workers through Social Security Agreements

Social Security for International Workers through Social Security Agreements under EPF Scheme, 1952 – Information Brochure by EPFO

SOCIAL SECURITY FOR INTERNATIONAL WORKERS THROUGH SOCIAL SECURITY AGREEMENTS

Advent of Globalisation and Economic liberalization, coupled with changing demographic profile of the world has made International migration of labour inevitable. India, with a large pool of young and technically qualified manpower has emerged as a global reservoir of human capital. This has encouraged mobility of skilled workforce from India to other countries.

Indian professionals working in various countries were required to make the mandatory social security contributions in the countries of their posting. However, despite making monetary contributions, such migrant Indian expatriates were deprived of social security benefits in the host country.

The contributions made by such migrant professionals during their stay in the host country were lost as the benefits are not payable before expiry of a minimum qualifying period and return of contribution paid in that country is not available in case of return to the home country.

SOCIAL SECURITY AGREEMENT (SSA)

With a view to protect the rights of migrant workers, Government of India decided to enter into bilateral Social Security Agreements (SSAs). A Social Security Agreement (SSA) coordinates the social security schemes of two contracting states in order to ensure continuity of social security coverage and facilitate extension of benefits to migrant workers, on reciprocal basis.

A SSA generally covers four important provisions namely, ‘ Detachment’, ‘Totalisation’, ‘Portability’ and ‘Equality of treatment’.

(i) Detachment – Indian employees working in countries with which India has Social Security Agreements are exempted from contributing to their Social Security System, provided they are complying with the Indian Social Security System. This exemption is available for a specified period stipulated in the agreement.

(ii) Totalisation – The period of service rendered in SSA country is counted for determining eligibility for pension. The actual pensionary benefits, however, are payable only for the period of contributory service in India on pro-rata basis.

(iii) Portability – Pension benefits are payable without reduction, direct to the beneficiaries choosing to reside in the home country or in any other country.

(iv) Equality of Treatment – Indian Nationals are to be treated equal to Nationals of the host country with regard to applicability of legislations covered under the SSA.

EPFO has been designated as the Competent Institution/Liaison Agency to operate the provisions of the SSAs and for issuing Certificates of Coverage (COC) to the employees of establishments covered under the EPF Act as well as the employees of other social security providers like the Seamen’s Provident Fund, Banks etc., when they are posted abroad in a country having SSA with India

Read more using the given link below for further details

Source: www.epfindia.gov.in

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