Indian employees going abroad and foreign nationals working in India may be subject to provident fund rules that differ from those applicable to regular EPF members. EPFO classifies eligible employees as International Workers. There are separate rules governing contributions, withdrawals and pension benefits.
Under EPFO rules, an International Worker can broadly be defined as an Indian employee who has worked in or is going to work in a country with which India has a social security agreement (SSA). The category 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 International Workers. No minimum period of stay is prescribed for an eligible foreign national working in India; enrolment is required from the 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 Money.
For regular EPF members, contributions are generally subject to the applicable statutory wage ceiling, currently ₹15,000. For International Workers, however, there is no wage ceiling for PF contributions, which are calculated on the employee’s total salary.
Following the implementation of the Labour Codes on 21 November 2025 and the notification of the new PF schemes on 29 June 2026, International Workers remain subject to PF contributions without a wage ceiling. The contribution base is now linked to “wages” as defined under the Labour Codes.
When employees move between countries, they may otherwise have to contribute to the social-security systems of both their home and host countries. Social Security Agreements are intended to provide continuity of coverage and address this potential duplication.
These agreements typically cover three areas: detachment, totalisation and exportability.
Detachment can prevent dual contributions in applicable cases. Totalisation allows eligible periods of social-security coverage in the two countries to be combined when determining benefit eligibility. Exportability allows eligible pension benefits to be paid even when the beneficiary resides in another country, subject to the terms of the agreement.
“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,” Anurag Jain, co-founder and partner of ByTheBook Consulting LLP, told Mint Money.
A Certificate of Coverage (CoC) is critical for an eligible Indian employee deputed to an SSA country. Issued by EPFO, it certifies that the employee remains covered under India’s social security system and can help establish an exemption from contributions in the host country.
The same principle works in the other direction. A foreign employee posted to India may be treated as an excluded employee if the applicable SSA and certificate establish continued coverage under the home country’s social security system.
India currently maintains SSA arrangements with numerous countries worldwide. These include Germany, France, Belgium, Switzerland, Japan, Canada and Australia. South Korea, Sweden and Brazil also feature among these partner nations.
The India–UK social-security agreement took effect on 15 July 2026. Under the agreement, 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 applicable conditions and a valid CoC issued by EPFO. The same principle applies to eligible UK nationals temporarily posted to India.
If an Indian employee moves to a non-SSA country, different rules apply. Such employees continue as regular EPF members, not International Workers. Countries that lack SSAs with India include the US, the UAE, Singapore and China. However, foreign nationals working in India are always classified as International Workers. This applies regardless of whether their home country has an SSA.
