Indians working abroad will get their PF back, government has made this plan; talks finalized with Britain

India is planning a channel to bring professional Indians who migrate following employment in foreign lands without offsetting their social security payment, i.e., Provident Fund amount. As a part of it, consultations are set to make the Social Security Agreement (SSA) a contractual part of the Free Trade Agreement (FTA) that is being negotiated with Commonwealth countries from Britain to America.

In the FTA that has reached the stage of consensus between India and Britain, Britain has agreed to make SSA a part of it. At the same time, efforts are being made to include social security provisions in the interim trade agreement with America. According to Labour Ministry sources, the reason behind India's insistence on making social security a part of the free trade agreement being negotiated with several countries is that the social security contributions of a large number of Indian professionals deducted abroad are not being paid.

Indian professionals are in the highest demand and in numbers throughout the world, from the UK to the US, due to their potential and efficiency. But when they return to India after working abroad for a couple of years, these countries never pay back the quantum of contribution deducted in their Provident Fund, as India is devoid of social security. Once provisions related to social security are integrated in FTA, it will be clear sailing for Indians getting back money stuck in the Provident Fund abroad.

In this sequence, Britain will probably be the first country which will also include the social security agreement as an inherent component of the FTA being done with India. Describing social security as important for the benefit of Indian professionals working abroad, Union Labor Minister Mansukh Mandaviya said that he has requested the Commerce Ministry to include the Social Security Agreement in all future FTA negotiations.

According to sources, Britain has agreed to include SSA in the FTA. This will benefit professionals who leave their jobs and return. The Labor Ministry will authorize the social security body EPFO ​​as a means of refund. The Social Security Agreement is a reciprocal arrangement between two or more countries that ensures that an employee does not have to contribute to the social security coverage fund in that country during his job abroad. But the full benefit of the employment period is available for pension calculation.

While employers avoid making double social security contributions on behalf of their employees. After the inclusion of SSA in the FTA with Britain, Indian companies will be able to deposit the PF contribution of their professionals deployed in Britain in EPFO ​​for three years. Currently, India has social security agreements with 22 countries including Japan, Australia, Germany, Canada, Brazil and Sweden.