Taking up an overseas assignment can change how your provident fund is treated. Under EPFO rules, certain employees working across countries are classified as International Workers (IWs), with provisions that differ from those applicable to regular EPF members.
An IW broadly includes an Indian employee who has worked or is going to work in a country with which India has a Social Security Agreement (SSA). It also includes a foreign national holding a non-Indian passport and working for an establishment in India covered by the EPF law.
Nepalese and Bhutanese nationals are treated as Indian workers under EPF rules and are therefore not classified as IWs.
There is no minimum stay requirement for an eligible foreign national working in India, and EPFO says such employees must be enrolled from their first day of employment.
“The IW status is not about how long someone stays, where they live, or what visa they hold. It is about the passport and the workplace,” Kunal Kabra, co-founder, KustodianLife, had earlier told Mint.
Why EPF contributions can be higher
For regular EPF members, contributions are generally subject to the applicable statutory wage ceiling, currently ₹15,000. For International Workers, there is no wage ceiling for PF contributions, with EPFO stating that contributions are calculated on the employee’s total salary.
Following the Labour Codes coming into effect on 21 November 2025 and the new PF schemes being notified on 29 June 2026, the contribution base for IWs remains linked to “wages” as defined under the Labour Codes.
Why country you move to matters
An SSA can help address the possibility that employees may have to contribute to social security systems in both their home and host countries.
“SSA benefits include avoiding dual social-security contributions, so that an employee does not have to contribute to both countries’ systems in applicable circumstances. They also provide for totalization of service, where periods of social-security coverage in India and the other country can be combined to determine eligibility for certain benefits, and export of benefits, allowing eligible pension benefits to be paid even when the beneficiary resides in the other country, subject to the terms of the agreement,” Anurag Jain, co-founder and partner of ByTheBook Consulting LLP,
India has SSA arrangements with countries including Germany, France, Belgium, Switzerland, Japan, Canada, Australia, South Korea, Sweden and Brazil, among others.
The India-UK social-security agreement came into effect on 15 July. Under its conditions, Indian employees temporarily posted to the UK by their Indian employer can remain covered by India’s social-security system for assignments of up to 60 months, subject to a valid Certificate of Coverage (CoC) issued by EPFO.
The US, UAE, Singapore and China do not have SSAs with India.
Certificate of coverage is important
For an employee deputed to an SSA country, EPFO issues a Certificate of Coverage confirming continued coverage under India’s social security system. It can help establish exemption from contributions in the host country, subject to the applicable agreement.
Withdrawal rules also differ
An SSA-covered IW can withdraw the full EPF amount after leaving employment, in line with applicable EPF rules.
For an IW not covered by an SSA, withdrawal is permitted only in specified circumstances, including retirement at 58, permanent and total incapacity or certain prescribed diseases.
EPS has separate rules. For an SSA-covered IW with eligible service of less than 10 years, withdrawal is allowed three years after leaving employment under EPS 2026. With 10 or more years of eligible service, the employee can qualify for a pension at age 58.
For an IW from a non-SSA country, EPFO says withdrawal benefits under EPS are not available; only a pension can be availed.
What happens if you leave money behind
“In such cases, after three years the account becomes inoperative and stops earning interest,” Jain said.
Kabra advised IWs from non-SSA countries to maintain their Indian bank account and EPFO login details.
“An IW worker from a non-SSA country who closes every Indian bank account on departure may find, years later, no valid account to receive the money and no easy way to update records from abroad. Keeping the Indian bank account and EPFO login details active can make the eventual claim process much easier,” said Kabra.
Before moving abroad, employees should check the destination country’s SSA status, their IW eligibility and whether they require a CoC, as these factors can affect their PF contributions, social-security coverage and withdrawal options.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.