India's SSA rules: EPF contributions, withdrawal for expats

Taking up an overseas assignment changes how an employee's provident fund is treated. Under EPFO rules, workers moving abroad are classified as International Workers (IWs), with provisions that differ from regular EPF members.

An IW is an Indian employee who has worked or is going to work in a country with which India has a Social Security Agreement (SSA). The category also includes foreign nationals holding a non-Indian passport and working for an Indian establishment covered by EPF law. Nepalese and Bhutanese nationals are treated as Indian workers, so they are not IWs.

There is no minimum stay requirement for an eligible foreign national working in India. 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 of KustodianLife, told Mint.

For regular EPF members, contributions are subject to the statutory wage ceiling of ₹15,000. For IWs, there is no wage ceiling. EPFO states that contributions are calculated on the employee's total salary. Following the Labour Codes effect on November 21, 2025, and new PF schemes notified on June 29, 2026, the contribution base for IWs remains linked to “wages” as defined under the Labour Codes.

An SSA can help avoid the possibility of employees contributing 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, told Mint.

India has SSA arrangements with Germany, France, Belgium, Switzerland, Japan, Canada, Australia, South Korea, Sweden, and Brazil. The India-UK social-security agreement came into effect on July 15, 2026. 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.

For an employee being deputed to an SSA country, EPFO issues a CoC 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.

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 years or more of eligible service, the employee can qualify for pension after 58.

For an IW from a non-SSA country, EPFO says withdrawal benefits under EPS are not available; only pension can be availed.

“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.