PANDIT DEENDAYAL UPADHYAY NATIONAL ACADEMY OF SOCIAL SECURITY

PANDIT DEENDAYAL UPADHYAY NATIONAL ACADEMY OF SOCIAL SECURITY (EMPLOYEES’ PROVIDENT FUNDS ORGANISATION) SOCIAL SECURITY FOR INTERNATIONAL WORKERS 1

Points of Discussion ØSocial Security- Brief Overview ØSocial Security to Migrant workers ØSteps taken by the Govt. of India ØLegislative provisions ØDiscussion on important provisions ØCertificate of Coverage ØIssues and challenges 2

Social Security Brief Overview The ILO Social Security (Minimum Standards) Convention 1952, (No. 102) establishes worldwideagreed minimum standards for nine branches of social security. These branches are: 3

POINTS OF DISCUSSION ØProvisions of SSA ØSteps taken by the Govt. of India ØLegislative provisions ØDiscussion on important provisions ØCertificate of Coverage ØIssues and challenges ØBackground 4

Migration: a worldwide phenomenon ØEconomic liberalization, rapid growth in developing economies, ageing population in western world and large pool of young and technically qualified person in certain countries have resulted in migration of professionals across the world ØIndia being a vast reservoir of technically qualified manpower in sectors like IT, health, and management etc. has witnessed a huge movement of skilled labour out of India. 5

MIGRANT WORKERS DEPRIVED OF SOCIAL SECURITY • Mandatory social security contribution in the country of their posting • No return of contribution paid in other country • No counting of service for short span of contributory period • No exportability of benefits 6

PROVIDING SOCIAL SECURITY TO MIGRANT WORKERS • Social Security is provided by entering into a Social Security Agreement (SSA) • An SSA coordinates the social security schemes of two contracting states in order to overcome the barriers and facilitate extension of benefits 7

Addressing Social Security Concerns Through SSA Issues i. Avoiding double coverage ii. Counting of service rendered in other country iii. Bringing benefits back home Provisions in SSA Detachment Totalisation Portability 8

DETACHMENT ØThe term ‘detached worker’, refers to persons who are posted by their employer to work in another country for a limited period of time and contribute to social security system of their home country. ØSuch workers are usually exempted from social security contributions in that country as per the provisions of SSA. ØFor example, one PF member Sh. Ramamurthy is deputed by TCS India to Belgium for a period of 4 years. Sh. Ramamurthy obtains Certificate of Coverage (COC) through his employer from respective RPFC. Based on the COC, the Belgium Authorities will grant exemption to Sh. Ramamurthy from Belgium Social Security System. 9

PORTABILITY Ø Portability refers to portability of benefits from one SSA country to another. Ø Benefits from the other country can be beneficiaries in their home country availed by • For example, Sh. Ramamurthy on his superannuation is entitled for Pension from India under EPS’ 95 and also under the Belgium Social Security System. On superannuation he opts to reside in India. In such circumstances, Belgium authorities will release monthly Pension payment to his Indian Bank Account. In the event he opts to reside in Belgium, EPFO is required to make monthly Pension payment to his Bank Account in 10 Belgium.

TOTALISATION Ø Period of contributory service rendered in another country counted for determining eligibility for pension only, for a person not otherwise eligible Ø Calculation of benefit restricted to contributory period of service under the respective social security programme, on pro-rata basis. Ø Totalisation refers to the total period of contributory service rendered by a PF member and benefits arising out of the same. • For example, if Ramamurthy, PF member goes to Belgium (SSA country) after taking COC, he continues to contribute to the Indian System and the contributory service is counted for Pension under EPS’ 95. • If Ramamurthy goes to Belgium (SSA country) without COC, he is mandatorily required to contribute to the Social Security System of the Belgium and he is entitled for totalisation of such contributory service. On his return, he will be International Worker in terms of provision of para 83(2)(ja)(a) of EPF Scheme 1952. 11

Initiatives taken by India Ø Enabling provisions were made in the schemes framed under EPF & MP Act, 1952. Ø Para 83 in EPF Scheme 1952 and Para 43 A under EPS’ 95 relating to Special provisions in respect of International Workers were introduced vide Notification dated 1 st Oct’ 2008. Ø Social Security Agreements have been signed with 18 countries 12

OPERATIVE SSAS Belgium Germany 1 st Sept. 2009 1 st Oct. 2009 Switzerland 29 th Jan. 2011 Denmark Luxembourg France 1 st May 2011 1 st June 2011 1 st July 2011 South Korea Netherlands Hungary 1 st Nov. 2011 1 st Dec. 2011 01. 4. 2013 Finland Sweden Czech Republic 1 st Aug 2014 1 st Sept 2014 Norway 1 st Jan 2015 Austria 1 st July 2015 Canada 1 st Aug 2015 13

OPERATIVE SSAS AUSTRALIA 1 st January 2016 JAPAN 1 st October 2016 14

SSAS SIGNED- YET TO BE NOTIFIED Portugal 4. 3. 2013 15

BENEFITS UNDER VARIOUS SSA Country Detachment Totalisation Portability Belgium 5 years √ √ Germany 4 years � � Switzerland 6 years � √ 5 years (for Indians) 3 years (for Danish) √ √ Luxembourg 5 years √ √ France 5 years √ √ South Korea 5 years √ √ Netherlands 5 years � √ Denmark

BENEFITS UNDER SSAS Country Hungry Detachment Totalisation Portability 5 years √ √ Finland 5 years √ √ Sweden 2 + 2 years √ √ Czech Republic 5 years √ √ Norway 5 years √ √ Austria 5 years √ √ Canada 5 years √ √

BENEFITS UNDER SSAS Country Australia Japan Detachment Totalisation Portability 5 years √ √

Agencies Involved in SSA § Ministry of External Affairs. Competent Authority § Ministry of Labour & Employment Controlling Authority § EPFO- Liaison Agency and Competent Institution 19

WHO IS AN INTERNATIONAL WORKER International Worker means: - - Any Indian employee having worked or going to work in a foreign country with which India has entered into a social security agreement and being eligible to avail the benefits under social security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement; - An employee other than an Indian employee, holding other than an Indian Passport, working for an establishment in India to which the EPF & MP Act, 1952 applies; 20

EXCLUDED EMPLOYEE Excluded employee is a foreigner, who is Ø Ø Ø posted in an establishment in India with COC; contributing to the social security programme of his home country; and exempted from the provisions of the Indian social security in terms of a Social Security Agreement or a bilateral agreement (e. g. CECA) signed with India (CECA –Comprehensive Economic Cooperation Agreement) 21

Indian IW Contribution in India on return Indian working abroad in a SSA country Posted with COC (Not required to contribute abroad) Posted without COC Contribute to social security system of SSA country Domestic worker International Worker 22

Foreign IW Coming from SSA country With COC- NO (Excluded employee) Coming from Non SSA country Every one Without COC- YES 23

ROLE OF EPFO designated as Liaison Agency to: (i) operate the provisions of the SSAs (II) issue Certificate of Coverage (COC) to the Øemployees of establishments covered under the EPF & MP Act, 1952; Øemployees of other Social Security Providers like Seamen’s Provident Fund, Banks etc. 24

LEGISLATIVE PROVISIONS -I • Original Notification dated 01. 10. 2008 inserted the following: -para 83 under EPF Scheme, 1952 -para 43 -A under EPS, 1995 • Subsequent amendment - Notification dated 03. 09. 2010 - Contribution towards pension fund on full pay - Withdrawal of provident fund on attaining the age of 58 years - No “withdrawal benefit” for persons not covered under any SSA 25

LEGISLATIVE PROVISIONS-II • Notification dated 24. 05. 2012 amended definition of “excluded employee” to cover the persons coming from a country having bilateral CECA with India prior to 1. 10. 2008 • Notification dated 05. 10. 2012 facilitated withdrawal of PF accumulation in respect of persons covered under SSA. 26

COVERAGE AND COMPLIANCE Who will become member of the Fund? Ø Every IW, other than an 'excluded employee' - from 1 st November, 2008 Ø Every excluded employee - from the date he ceases to be excluded employee Contribution – Employees’ Provident Fund -on full pay from 01. 11. 2008 Employees’ Pension Fund – on full pay from 11. 09. 2010 27

Comparative Benefits Persons covered under SSA Persons NOT covered under SSA Øwithdrawal of PF accumulation on ceasing to be employed in an establishment covered under the Act Øwithdrawal of PF accumulation not before the age of 58 yrs or on unless permanent and total incapacity due to bodily and mental infirmity Ø“withdrawal benefit” under EPS, 1995 ØTotalization benefits ØPension portable abroad ØNo “withdrawal under EPS, 1995 benefit” ØPension payable in India only 28

CERTIFICATE OF COVERAGE (COC) EFFECTIVE AFTER 15 TH AUGUST, 2013 ØApplication form (available on official website) duly filled by employee/employer to be submitted to the concerned office ØConcerned RPFC to verify membership details and issue COC ØStamp of EPFO along with signature and Seal of the officer to be put invariably on COCs 29

SUMMARY OF IMPORTANT POINTS ØA person going to SSA country with COC will be a normal member ØA foreign national coming in India with valid COC not to be enrolled as member ØEach and every foreign national without COC to be enrolled as IW ØNo withdrawal of PF before the age of 58 years for person not covered under SSA: Withdrawal Benefits under EPS also not available ØPerson covered under SSA can withdraw PF on ceasing to be employed in an establishment covered under the Act; Further entitled to “withdrawal benefit” under EPS, 1995, Totalization benefits and Pension portable abroad. 30

. THANKS 31