India (IN)
India is the world's most populous nation and a fast-rising global power — a vibrant federal republic of extraordinary cultural, linguistic, and geographic diversity.
Social Security in India
Benefits, contributions, and how the system works for expats.
India's social security system is fundamentally different from European welfare states. There is no comprehensive universal social safety net. Key components are: EPF (Employee Provident Fund) for retirement savings, EPS (Employee Pension Scheme) for pensions, ESIC (Employee State Insurance) for low-income workers, NPS (National Pension System) for additional retirement savings, and Gratuity as mandatory severance after 5 years. India has no unemployment insurance. Most social welfare schemes (Ayushman Bharat, PM-KISAN, MGNREGA) target Indian citizens below the poverty line — expats are generally not eligible. EPF membership is mandatory for qualifying expats working in India.
UAN (Universal Account Number)
UAN (Sarvavyapi Khata Sankhya)
Your employer generates and links your UAN when you join an EPF-registered establishment. The UAN is a 12-digit permanent number linked to your EPF account — it follows you across all employers. Activate your UAN on the EPFO member portal (epfindia.gov.in) using your PAN, Aadhaar (if available), and mobile number. International workers may use their passport number if Aadhaar is unavailable.
- EPF (Employee Provident Fund) contributions and withdrawals
- EPS (Employee Pension Scheme) tracking
- Transferring EPF balance between employers
- Withdrawing EPF on emigration or retirement
- Checking EPF balance and passbook online
Benefits & Support Payments
EPF — Employee Provident Fund
Karmachari Bhavishya Nidhi (EPF)
Mandatory retirement savings fund. Employee contributes 12% of basic salary; employer contributes 12% (3.67% to EPF, 8.33% to EPS pension). Interest rate: ~8.25% for FY2025-26 (announced annually by EPFO). Tax-free on maturity after 5 years of continuous service.
Mandatory for establishments with 20+ employees where basic salary ≤ ₹15,000/month (though many employers extend to all employees). Expats on Employment Visa who work for EPF-registered companies. OCI holders treated same as Indian employees.
Employer registers you automatically. You receive UAN. Activate UAN at epfindia.gov.in. Check contributions via UMANG app or EPFO portal.
EPS — Employee Pension Scheme
Karmachari Pension Yojana (EPS)
Pension scheme funded by 8.33% of employer's EPF contribution. Provides pension from age 58 after minimum 10 years of service. Minimum pension: ₹1,000/month. Higher pension possible based on contributions.
EPF members with 10+ years of service in India. Foreign employees who contribute to EPF are also eligible.
Automatically linked via EPF. Claim after retirement at age 58 through EPFO. For expats leaving India: can withdraw EPS corpus as lump sum (instead of pension) if less than 10 years service.
ESIC — Employee State Insurance
Karmachari Rajya Bima Nigam (ESIC)
Comprehensive social insurance scheme for low-income employees. Provides medical care (ESIC hospitals), sickness benefit, maternity benefit, disability pension, and dependants benefit.
Employees earning ≤ ₹21,000/month in ESIC-covered establishments. Employee contributes 0.75% of gross wages; employer contributes 3.25%. Most expats earn above this threshold and are NOT eligible.
Employer registers eligible employees. ESIC card issued for accessing ESIC hospitals and dispensaries.
NPS — National Pension System
Rashtriya Pension Pranali (NPS)
Voluntary (for private sector) market-linked retirement savings scheme. Two tiers: Tier I (pension account — locked until age 60) and Tier II (flexible savings — can withdraw anytime). At 60: 60% as tax-free lump sum + 40% compulsorily used to buy annuity.
Indian citizens and NRIs (18–70 years). Expats on Employment Visa: check PFRDA (Pension Fund Regulatory and Development Authority) for current eligibility — generally available to those with PAN card.
Open NPS account at any Point of Presence (PoP) — banks, post offices, or online at enps.nsdl.com. Need PAN and Aadhaar/address proof.
Gratuity
Upadhaan
Mandatory lump-sum payment by employer to employee on leaving after 5 years of continuous service. Formula: 15 days of last drawn salary × years of service. Maximum: ₹20 lakh (tax-free up to this limit).
Employees completing 5 years of continuous service with the same employer. Both Indian and expat employees are eligible.
Claim from employer within 30 days of leaving employment. Employer must pay within 30 days of claim. If delayed, employer owes interest.
Contribution Overview
Total mandatory social security contributions: Employee: 12% EPF + 0.75% ESIC (if applicable) + Professional Tax (up to ₹2,500/year). Employer: 12% EPF + 3.25% ESIC (if applicable) + 4.75% LWF (Labour Welfare Fund, state-specific). The new Social Security Code 2020 will simplify and consolidate these contributions when fully implemented by states.
International Social Security Agreements
India has Social Security Agreements (Totalization Agreements) with 20+ countries, allowing workers to avoid dual EPF/social security contributions. Countries include: Germany, France, Belgium, Switzerland, Luxembourg, Denmark, Finland, Norway, Sweden, Hungary, Czech Republic, South Korea, Japan, Canada, Australia, Netherlands, Portugal, Austria, Brazil, and Quebec (Canada). If your home country has an SSA with India, your employer can obtain a Certificate of Coverage from EPFO to exempt you from EPF contributions (contributing to your home country social security instead). Check the EPFO website for the current list.
India has no unemployment insurance — there is no benefit to claim if you lose your job. Job loss for an expat on Employment Visa also affects visa status — you must notify FRRO and either find new employment or leave India. EPF and EPS are the most important social security elements for working expats. Upon emigration/leaving India permanently, expats can apply for withdrawal of EPF corpus (subject to TDS if service < 5 years). Consult a CA (Chartered Accountant) for tax implications of EPF withdrawal and pension portability.
Social Security
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