PF withdrawal made easier for ‘international workers’
‘International workers’, covered under a social security agreement entered into between India and another country, will now be allowed to withdraw their contributions from the Provident Fund on termination of employment with the Indian employer. As of now, India has eight social security agreements in force — with Belgium, Germany, Switzerland, Luxembourg, France, Denmark, Korea and the Netherlands.
For example, Phil, an alpha geek from France, was seconded by his home entity on April 1, 2010, for 30 months assignment to work in India. As on April 1, 2010, there was no existing social security agreement between India and France. Therefore, Phil was mandatorily required to become a member of the Provident Fund in India as an ‘international worker’. The social security agreement between India and France is operative from July 1, 2011. Since then, Phil, an existing member of social security scheme in France obtained a certificate of coverage in France and was no longer
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