What Is SaaS? And What Is Web Based, SaaS HR Software?
The instructions outlined below have to be followed while making payment to the international worker at the time of leaving India:
- Employer should make the payment of contribution through separate ECR within 3 days of the month in which the member is leaving the country;
- Employer should submit the claim forms in respect of such international worker by 6th of the month in which such member is leaving service;
- The Provident fund office will settle the account and credit the accumulated amount to the member’s account on the date of leaving service in India to the bank a/c maintained in India. (If the member desires interest on the settlement amount for the month of retirement, then the credit will happen on the first day of next month)
International Worker
- An international worker is a person who can work in an Indian company where the rules of the Employees Provident Fund apply, even if they do not have an Indian passport. India has signed a social security agreement with many countries and if the international worker is one of these countries, with a certificate of coverage, can contribute to social security only in their own country.
Social Security Agreement
- The Social Security Agreement (SSA) is a mutual agreement between the two countries to protect the social security interests of an employee in one country by another country. India has signed this agreement with many countries such as Switzerland, Germany, France, Belgium and Luxembourg to ensure that Indian workers receive equal treatment in this country and vice versa.
Provident Fund Withdrawal
An expatriate, working in India, can withdraw his or her provident fund under the following conditions:
- If the international worker is covered by an SSA, the worker may withdraw the provident fund in accordance with the regulations of that particular SSA.
- If the worker is not covered by an SSA, you can withdraw the provident fund at the age of 58, which is the retirement age. However, exceptions are made if you have retired due to any incapacity for work or suffering from leprosy, cancer, and tuberculosis.
- An international worker under an SSA may have the provident fund credited to your bank account outside of India. However, if it does not cover SSA, the PF will be credited to your bank account in India.
- The Reserve Bank of India allowed expatriates to keep their bank accounts in India even after repatriation in order to pay their outstanding contributions.
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