EPFO: Provisions covered under SSA For International Workers

The EPFO Provisions for International Workers is a framework that provides certain benefits to international workers. It does not cover every benefit provided by the SSA, but it covers a few important ones. You can find more information about the different provisions and their details here.
A social security agreement is a treaty between two countries to provide mutual international social security coverage for their nationals. Since such treaties include specific provisions for international workers, this type of agreement is also called an international social security agreement (SSA).
EPFO as a Social Security Organization is recognized by the Government of India and has been granted SEBI Registration. EPFO has commenced the payment of Provident Fund (PF) to the eligible employees with effect from November 1, 2023.
The EPFO has introduced a new set of provisions for foreign nationals working and residing in India on a per day basis or per month basis. Under these provisions, employers will be required to deduct contributions from an employee’s salary at source and deposit these amounts into an EPF account along with monthly tax deducted at source. Any withdrawn amount would be taken out only after the deduction of maternity benefit, PF contribution or other specified benefits or pay fixation deductions.
EPFO Act has provided all the benefits to workers irrespective of the place of work and residence. This Act is known as SSA in short. The social security agreement comes under this umbrella which protects the rights of workers all through his/her working life.

What is EPFO?

The EPFO (Employees Provident Fund Organization) is the payment system that provides a cash benefit to employees in India. The EPFO was formed in September 1992 and provides a host of services to its customers. These services include pension payments, provident funds, gratuity payments, healthcare insurance, and other benefits.
The EPFO is a social security scheme in India. It started as a voluntary pension system and has now evolved into a mandatory employer-sponsored social security plan. Besides being a contributory pension scheme, it also serves as an insurance or retirement fund. It is a government-sponsored social security scheme for salaried employees who contribute 12% of their basic pay towards retirement benefits under the EPFO. An individual can opt to get his/her EPF contributions deducted from his/her salary or get it deposited in an external bank account of his choice.

The Employees’ Provident Fund Organisation is a tripartite body, under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It covers all persons actively engaged in any branch of industrial activity (industries) of a public character or not carrying on any such activities but employable by an employer or receive income from them other than earnings in remunerative employment.
The EPFO is a social security system in India that provides group insurance benefits to employees. It works as an umbrella organization for all other organized labor laws and rights, such as social security, minimum wages, and employment relations. EPF offers 4 types of schemes, namely- Employee Provident Fund(EPF), Matrimonial Pension Scheme (MPS), Employees State Insurance Act (ESI), and Matrimonial Property Gifts Scheme (MPGS).

What is Social Security Agreement (SSA)?

SSA is a comprehensive social security agreement between the countries of Southeast Asia and the West, established in 1978.
The Social Security Agreement is the contract between the Government of India. And the EPFO to accomplish the objectives outlined in the program.
Social Security Agreement (SSA) is an international agreement between the Government of India. And the Government of Spain on a reciprocal basis that applies to a pension to citizens born in Spain.
Social Security Agreement (SSA) is the policy of mutual assistance and reciprocal arrangements made by social security institutes in the course of international social security cooperation. It formally came into force on 1 January 1949 when the original conventions on Social Security signed at Geneva were ratified. The most important provisions covered in SSA.
The social security agreement (SSA) is a standardized contract that employers and employees sign to determine their pension rights, maternity benefits, vacations, leaves, and compensation.
The Social Security Agreement (SSA) is a multilateral treaty governing the relationship between members of the Organisation for Economic Co-operation and Development. It provides a framework by which countries can better coordinate their national social security systems to ensure that they provide adequate retirement income, health insurance, sickness benefits, and unemployment benefits to their citizens.

New provisions for international workers

The EPFO has made many provisions for international workers. They have done this to promote development in India, as well as other countries.
As per the provisions of the Social Security Agreement (SSA), all contributions to EPF. Whether from Indian employees or foreign employees working in India. Its are tax-exempt under Section 80CCD(1). Under Section 80CCD(2). SSA is a statutory agreement between the Government of India and a foreign entity that governs the benefits. And obligations to which such employees are entitled under both Indian and foreign laws.
International workers are not covered under EPFO. They are required to report their earnings for social security only in the country where they work.
The EPFO, which is operated through the ESMA (Employees State Insurance Corporation), offers different kinds of provident funds to employees. Who earn more than 6600 rupees per month as salary or an annual income of more than 1.35 Lakh rupees.
EPFO is an employee-driven comprehensive social security scheme. Which helps to provide government protection against risks and insecurities faced by employees and their family members. It provides old age, disability, maternity andar death benefits.