Money & Banking

PF Office in talks to pay foreign workers in their home country

Vinson Kurian Thiruvananthapuram | Updated on September 28, 2011 Published on September 28, 2011


The Provident Fund Office is negotiating a banking arrangement for payment of social security benefits to international workers.

Giving a background, sources in the Government said that in October 2008 the Centre had made fundamental changes in the Employees' Provident Funds Scheme-1952 and Employees' Pension Scheme-1995 by bringing international workers under the purview of the Indian social security regime. In September 2010, stringent amendments were introduced to the schemes.

A relief was provided for those coming from countries with which India has Social Security Agreements (SSAs).


SSA is a bilateral agreement to protect the interest of workers in host countries. The deal provides for avoidance of double coverage and equality of treatment with workers in the host country.

India has signed SSAs with 11 countries out of which five agreements have become operational. These are with Belgium, Germany, Switzerland, France and Luxembourg, the sources said.

According to the terms and conditions of SSAs, the Provident Fund Office is required to pay social security benefits to international workers in their home countries. It is in this context that the PF Office is negotiating for a banking arrangement.

The PFO has asked its officers to get information on the number of foreign national pensioners; amount paid to each such person in the last 12 months; and the mode of pension payment to foreign national retirees.

The information is to be submitted at the earliest, the sources added.

Published on September 28, 2011
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