What is CoC?

The CoC is required for all those employees going abroad for assignments or posting done by their employers. It helps EPFO subscribers to avoid deductions from their pay on account of mandatory social cover provided to workers under the legal framework of the country where they are posted. The EPFO had issued 20,022 CoCs to its subscribers during 2016-17.

Social security agreement

At present, India has the social security agreement with 18 countries, Netherlands, Belgium, Germany, Switzerland, Denmark, Luxembourg, France, South Korea, Sweden, the Czech Republic, Austria, Finland, Japan, Canada, Australia, Norway, Singapore, and Hungary.

Who are exempted from social security agreement?

The social security agreement provides for detachment, totalization, and portability. Under the detachment clause, the employees of one country deputed by their employers to other country for short-term assignments are exempted from social security contributions up to a period of 60 months.

Contribution to social security schemes

The international workers of these countries posted in India are not required to make the mandatory contribution towards social security schemes run by the EPFO in India. Employees from these countries need to produce the CoC stating that they are covered under such social schemes in their country and get an exemption from contribution to EPFO schemes. A similar privilege is enjoyed by Indian employees posted in these 18 countries with whom it has signed social security agreements.

Workers from other countries

However, there are a large number of countries with whom India has not inked any social security agreements. Therefore, workers from these countries are required to subscribe to EPFO schemes, and sometimes they make such mandatory contributions in their country as well.