Going abroad for work? What to do with your EPF account

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Understand your options to manage or withdraw your provident fund when moving overseas.

What to do with your EPF account if you are moving overseas

Employee Provident Fund (EPF) is a retirement savings plan for employees who receive a salary. Your EPF account is not automatically closed when you move abroad for work; it continues to be maintained until you withdraw the balance or transfer it to any another account. Meanwhile, the contribution—from you and your employer—is stopped when you stop working in India.

Keep the EPF account active

You can choose to keep the EPF account even after you have moved out of the country. The account would earn interest for three years from the date of your last contribution. This is helpful if you are planning to return to India sometime in the future and work here again.

Keep your EPF balance back

You can withdraw your EPF balance in case you do not wish to return to India to work. You can withdraw it in case you are unemployed in India for two months or more. You can do this online through the EPFO Unified Portal if your Aadhaar, PAN, and bank account are linked to your UAN. The money will be credited directly into your Indian bank account.

Transfer to an international scheme of social security

India has signed social security agreements with numerous nations. If you are visiting a nation with which India has a social security agreement, you can avail yourself of the facility to transfer your EPF accumulated balance to the social security scheme of the host country. Double contribution is thus averted and you are eligible for the period of service for pension benefits abroad.

Tax implications

EPF interest is exempt from tax if you retain your resident status. After you attain non-resident status, the interest can be taxed in India. You need to consult a tax advisor to ascertain your tax liability in India as well as the nation where you are employed. By being aware of your options well in advance, you can make an informed decision about your EPF account and avoid any last-minute trouble in emigrating abroad.

FAQs

Q1. Can I retain my EPF account if I emigrate abroad permanently?

Yes, you can retain the account, but contributions will cease. It will accrue interest for a maximum of three years from the date of the most recent contribution.

Q2. How can I withdraw my EPF balance abroad?

You can sign in to the EPFO website and file an online claim. The money will be transferred to your associated Indian bank account.

Q3. What if the country where I immigrate has a social security agreement with India?

You may be able to transfer your EPF benefits to your nation's social security scheme according to the agreement.