The Provident Fund Office is negotiating banking arrangement for payment of social security benefits to international workers (IWs).
Giving a background, sources in the Government said that in October 2008, the Centre 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, additional stringent amendments were introduced in the above schemes.
A relief has been provided in case of those coming from countries with which Indian has entered into Social Security Agreements (SSAs).
SSA is a bilateral agreement to protect the interest of workers in host countries and provides for avoidance of double coverage and equality of treatment with the host country workers.
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 added.
Generally, as per the terms and conditions of SSAs, the PF office is required to make payment of social security benefits to the international workers in their home countries.
It is in this context that the PF Office is negotiating banking arrangement and has, therefore, vide an internal circular (no. IWU/8 Bnkng Arrangement /2009 of EPFO) asked its officers to provide the following information:
(i) The total number of foreign national pensioners as on date
(ii) The amount paid to each foreign national pensioner during the last 12 calendar months
(iii) The mode of pension payment to foreign national retirees.
The information is to be submitted at the earliest, the sources said.