Moving abroad for work? You can withdraw your PF early
What's the story
If you're planning to take up a job abroad, it's important to understand how your Employee Provident Fund (EPF) will be affected. The Employees' Provident Fund Organisation (EPFO) has special provisions for international workers, which are different from those for regular EPF members. An IW broadly includes an Indian employee who has worked or will work in a country with which India has a Social Security Agreement (SSA).
IW status
What is the difference between IWs and regular members?
The IW status is not determined by how long someone stays, where they live, or what visa they hold.
It is determined by the passport and workplace.
For regular EPF members, contributions are usually subject to a statutory wage ceiling of ₹15,000.
However, there is no wage ceiling for PF contributions for international workers as per EPFO guidelines.
Social security
India has social-security agreements with several countries
An SSA helps avoid dual contributions to social security systems in both home and host countries.
India has SSA arrangements with several countries, including Germany, France, Belgium, Switzerland, Japan, Canada, Australia, South Korea, Sweden, and Brazil.
The India-UK social-security agreement came into effect on July 15.
Under its terms, Indian workers temporarily posted to the UK by their Indian employer can continue to be covered under India's social-security system for up to 60 months.
Coverage certificate
For employee posted to SSA country, EPFO issues a CoC
For an employee posted to an SSA country, EPFO issues a Certificate of Coverage confirming continued coverage under India's social security system.
This can help establish exemption from contributions in the host country, subject to the applicable agreement.
An SSA-covered IW can withdraw the full EPF amount after leaving employment, as per applicable EPF rules.
However, withdrawal is only permitted under certain circumstances for those not covered by an SSA.
Pension scheme
EPS has separate rules for IWs
The Employee Pension Scheme (EPS) has separate rules for IWs.
For an SSA-covered IW with less than 10 years of eligible service, withdrawal is allowed three years after leaving employment under EPS 2026.
If the employee has 10 or more years of eligible service, they can qualify for a pension at age 58.
However, for an IW from a non-SSA country, withdrawal benefits under EPS are not available; only a pension can be availed.