PWC New India Procedures To Extend Certificate of Coverage

Insights
from Global Mobility
India: New procedures to extend

certificate of coverage beyond period
in social security agreement
November 29, 2018
In brief
The Employees Provident Fund Organisation (EPFO) in a recent notification prescribed the procedure
for issuing a certificate of coverage (COC) for a term beyond the stipulated period provided in the social
security agreement (SSA) between India and other countries. It also prescribed the procedure for
extending beyond the term stipulated in the SSA, CCAs that have been issued by the home social security
authorities of the foreign national coming to work in India. These new procedures are a welcome
development for employers with mobile workers.
In detail New procedures the provisions of the SSA for

Background Until recently, there was no the country where the
The COC (also called a procedure prescribed by the applicant is going to work.
detachment certificate) is a EPFO for issuing COCs beyond
 Regional Provident Fund
certificate issued to an the period specified in the SSA.
However, the EPFO now has Commissioner I – IWs Unit
international worker (IW) by his (RPFC-I, IWU) shall forward
or her home social security prescribed the following
procedure: the request to the competent
authorities that exempts the IW
institution/authority of the
from contributing to the social  The process is initiated by
security in the host country as SSA country, and on receipt
filing a joint application of their consent, instruct the
long as he or she is contributing
(from employee and jurisdictional RO to issue the
to their home social security
system. employer) with the Regional COC for such extended
Office (RO) of the EPFO in period. The EPFO has
The COC is issued for a period the establishment prescribed that for all issues
specified in the SSA between the jurisdiction. relating to cancellation,
relevant home and the host
 This application is then amendment, or extension of
social security authorities, and
is valid for the period specified forwarded by the concerned the COC, the original
in the certificate. RO to the EPFO head office authority of the concerned
(HO) with their RO that issued the COC shall
recommendations based on be the competent authority.
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In addition to the above, the EPFO jurisdiction the establishment is The takeaway
also has prescribed the procedure for located where the foreign national
providing consent for extension of the Facilitating the extension of social
is working. When examining the
COC issued by the home social security benefits beyond the
case, the RO shall provide their prescribed period under the relevant
security authority of the IW coming to comments and recommendations
work in India beyond the period SSA is a welcome move. Generally,
to the EPFO, HO. long turnkey projects require skilled
specified in the SSA between such
foreign country and India. The EPFO  Based on recommendations of the resources for an expanded duration
has provided that in such cases the and the extension of social security
concerned RO, the IWU cell of the
concerned RPFC of the RO shall be benefits using COCs for the expanded
EPFO HO shall convey the decision
the competent authority to decide if period will help organizations to
of either approving or rejecting the retain such skilled resources at
consent should be granted to the request to the competent
extension request. The procedure is as competitive prices.
institution/authority of the
follows: Although the extension of the COC
concerned SSA country.
period depends on the mutual
 To consider such request, the  For purposes of coordinating with concurrence and agreement between
application received by the IWU
the competent authorities or the countries, these new procedures
unit of the EPFO HO from the
institution of foreign SSA will likely help promote employee
competent institution/authority of countries, the RPFC-I, IWU of the mobility for a longer duration.
the SSA country shall be forwarded
EPFO HO shall be the nodal
to the respective RO under whose
officer.
Let’s talk
For a deeper discussion of how this issue might affect your business, please contact your PwC Global Mobility Services
engagement team, or the following professionals:
Global Mobility Services – India
Kuldip Kumar Anand Dhelia Ishita Sengupta

+91 9810107409 +91 9886712934 +91 9821368106
kuldip.kumar@pwc.com anand.dhelia@pwc.com ishita.sengupta@pwc.com
Ravi Jain Sundeep Agarwal

+91 9886172173 +91 9820538580
ravi.jain@pwc.com sundeep.agarwal@pwc.com
Global Mobility Services – United States
Peter Clarke, Global Leader

+1 (646) 471-4743
peter.clarke@pwc.com
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PWC New India Procedures To Extend Certificate of Coverage

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PWC New India Procedures To Extend Certificate of Coverage

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Insights

from Global Mobility

India: New procedures to extend

November 29, 2018

In detail New procedures the provisions of the SSA for

Global Mobility Services – India

Kuldip Kumar Anand Dhelia Ishita Sengupta

Ravi Jain Sundeep Agarwal

Global Mobility Services – United States

Peter Clarke, Global Leader

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