Govt tightens PF norms for overseas workers

India has tightened norms for withdrawal of provident fund (PF) by foreign  workers employed in the country, prohibiting them from taking back this money until they are 58 years old or are incapacitated.

“An international worker may withdraw the full amount standing to his credit in the fund on retirement of services in the establishment at any time after the attainment of 58 years, or on retirement on account of permanent and total in capacity for work due to bodily or mental infirmity," said an amendment carried out by the labour ministry.

However, analysts said these norms had been tightened for those countries that didn’t have social security agreements with India and the move might prompt them to go in for such pacts. India has such agreements with 11 countries, but they are effective only with Germany and Belgium.