Employee PF Exemption agreement between India and Australia

Employees’ Provident Fund Organisation

(Ministry of Labour & Employment, Govt. Of India)

Head Office

Bhavishya Nidhi Bhawan, 14- Bhikaji Cama Place, New Delhi — 110066

File No IWU/7(2)2009/Australia/Vol –I/24955 Dated-16.03.201

To,

All Additional CPFCs (Zones)

All Regional PF Commissioner, ROs and SROs

Subject : Social Security Agreement between the Republic of India and Australia

Sir,

In pursuance to the Social Security Agreement (SSA) signed with Australia the Government of India has now notified vide order No O1-11012/12/2012-EP-II (Vol –III) dated 14-01-2016 that the above Agreement has entered into force with effect from 01-01-2016. The text of the Agreement is available on the official website of EPFO, www.epfindia.gov.in

2. The agreement provides for detachment, totalisation and portability. Under the detachment clause, the employees of one country deputed by their employers to the other country on short –term assignment are exempted from Social Security contribution in that country up to a period of 60 months. However, such exemption can be availed on the basis of “Certificates of Coverage.”

3. In view of above, concerned employee through employer may apply for the “Certificate of Coverage” in the prescribed format (copy enclosed). Since the “Certificate of Coverage” are to be issued by the RO/SRO, it may be ensured that on receipt of the application complete in all respect, necessary action is taken by the concerned RO/SRO for issuing COC in accordance with the consolidated guidelines issued by the Head Office view letter No IWU/7(15)2011/Gen (Software)/9209 dated 13-08-2013.

4. In case any further clarification is required, IWU Head Office may be contacted.
Yours Faithfully,
(Chandramauli Chakraborty) Additional Central PF Commissioner (Pension & IWU)
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SOCIAL SECURITY AGREEMENT WITH THE REPUBLIC OF AUSTRALIA

The Government of India has entered into an Agreement on Social Security Agreement with Australia. Following the principles of reciprocity this, agreement is intended to benefit the employees of both India as well as the Australia. The agreement has come into force w.e.f 01-01-2016

The Agreement provides inter-alia for posting i.e. detachment up to a period of 60 months for employees of both the countries. Accordingly the employees of one country deputed by their employers to the other country on short-term assignment for a pre-determined period of up to a period of 60 months need not remit Social Security Contributions in that country. Thus the employers are saved from making double Social Security contributions for the same set of employees thereby enhancing the competitiveness of their products and services.

Employees’ Provident Fund Organization (EPFO) has been identified as the agency of implement the provisions of the agreement in India and has been authorized to issue “Certificate of coverage” to the employees of Indian establishment posted to the Australia.

The employers, who have already deputed/intend to depute their employees to the Australia can avail of this facility. The application form for this purpose is available on the official web site http://www.epfindia.gov.in. The “Certificate of coverage” will be issued by concerned RO/SRO where the application is submitted. They may also contact their jurisdictional Regional Provident Fund Commissioner or the International Workers Unit in the Head Office at 14, Bhaikaji Cama Place, New Delhi -110066 for any further details.

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