EPFO: The Employees’ Provident Fund Organization (EPFO) has introduced a new regulation aimed at facilitating the transfer of PF and pension funds for international workers. This service will be available for countries that have a Social Security Agreement (SSA) with India. Now, foreign workers can conveniently transfer their funds to their bank accounts in India, their home country, or even a third country. Previously, this process was bogged down by extensive paperwork and delays, creating challenges for both employees and employers.
What has changed in the new rule?
The EPFO has made efforts to streamline the procedures for Forms 15CA and 15CB, which were once seen as tedious and contributed to transfer delays.
Verification of foreign bank accounts can now be done using bank statements or passbooks. A regional office located in Delhi will serve as the central office for this purpose. Tax-related tasks will be managed with the assistance of a chartered accountant. All transaction records will be kept and reconciled on a monthly basis.
What are the benefits to employees?
The primary advantage of this update will be for foreign employees, ensuring they receive their funds promptly and with minimal hassle. Additionally, the process will be simplified for companies, allowing them to save time and resources.
You will receive your money upon leaving your job
EPFO has also made it clear that PF and pension payments to foreign employees will only be disbursed at the time of job termination, in accordance with existing regulations.
Meanwhile The long-standing demand for an increase in the pension under the Employees’ Pension Scheme (EPFO) was raised again in Parliament, but the government has not indicated any concrete relief on this issue. Labor and Employment Minister Mansukh Mandaviya stated clearly in the Lok Sabha that there are no plans to increase the minimum pension or implement any new recommendations.
This issue was raised in the Lok Sabha by MP N.K. Premachandran. He asked the government whether any action would be taken on the recommendations of the high-level committee, whether an increase in the minimum pension was being considered, and whether pensioners would be given more time to accumulate the necessary funds for a higher pension.
In its response, the government stated that the Employees’ Pension Scheme (EPS-95) is a “defined contribution-defined benefit” scheme. This means that the pension fund is composed of an 8.33% contribution from the employee’s employer and a 1.16% contribution from the central government (up to a maximum salary of Rs 15,000). All pensions are disbursed from this fund, so it is important to maintain its financial balance.