A Certificate Of Coverage: What Is It?
When a person works for a company, they must contribute to the national social security program of the nation in which they are employed. For example, employees in India are required to make contributions to the person Provident Fund (EPF). On the other hand, when an employee works abroad, they are required to pay into the social security system of that nation. Should the duration of employment be short, the worker will not be eligible to receive its advantages. As long as the employee is making contributions to their home social security system or EPFO, they may be eligible to request an exemption from the social security of the foreign country. Obtaining a Certificate of Coverage (CoC) from EPFO does this. CoC is sometimes referred to as.
For example, an Indian worker assigned to Japan may be able to claim an exemption from Japanese social security by obtaining a Certificate of Coverage in India.
An employer dispatches a “detached worker”, who is an external mobile worker, to work temporarily for the same company or a partner in another country. As long as they meet certain requirements, they do not have to pay social security taxes in their home country while contributing to it.
- He or she lives by the domestic social security system.
- A unique Social Security Agreement specifies the period of detachment.
Please be aware that you can withdraw the full amount if you are moving to or settling abroad. We will pay interest into your account for 58 years. However, taxation would apply to that interest. We refer to these employees as international laborers.
The CoC remains valid for the duration specified in the certificate and is issued in accordance with the time mentioned in the Social Security Agreements (SSA) between the relevant home and host social security authorities. The Social Security Agreements outline the duration for obtaining a Certificate of Coverage—60 months, 48 months, 24 months, etc.
The exemption benefits the employee by sparing them from paying into both the social security systems in the nation where they were employed and India. With 18 nations, with whom India has an operating Security System Agreement, this is possible. The listed nations include Canada, Australia, Germany, Denmark, Switzerland, Belgium, France, Hungary, Finland, Luxembourg, Czech Republic, Netherlands, Japan, Portugal, Sweden, Austria, and Norway.
How Has The Certificate Of Coverage Submission Process Changed?
The employer and employee had to sign applications for Certificates of Coverage in hard copy before they could implement the new online procedure. Afterward, individuals must physically submit them to the Indian Social Security Administration. Following that, the employer received a paper Certificate of Coverage from the Indian Social Security Authorities. The delay in the entire Certificate of Coverage procedure resulted from this.
The Ministry of Labor and Employment, Government of India, has introduced an online platform as part of the Government’s Initiative towards Digital India, offering an easier solution. The application no longer requires sending hard copies to the regional provident fund offices because the new process is entirely electronic.
What Procedures Must An Employee Do To Obtain A Certificate Of Coverage?
The following are the steps that the employee must take:
- Visit https://iwu.epfindia.gov.in/iwu/
- Select Application for CoC.
- Enter UAN, Captcha, and then Submit.
- Download and print the pre-filled application, then upon submission, the system generates a reference number.
- Sign and upload the application.
- Go to the foreign workers portal and select “UPLOAD SIGNED APPLICATION FOR COC” to upload the signed application.
What Procedures Must An Employer Complete To Issue A Certificate Of Coverage?
The following are steps that the employer must take:
- Visit https://iwu.epfindia.gov.in/iwu/
- After entering your password, user ID, and caption, log in. Use the login credentials for the Unified Portal (Employer) that you use.
- Click the Applications tab and choose Certificate of Coverage.
- Choose a reference number, then check the information.
- Approve or reject the application verification.
- Once approved, select the Download tab and navigate to Signed Application Members.
- Remove the print from within the application.
- Please sign the application.
- Transfer the duplicate to the server.
After completing every stage, the employer and employee must wait for the PF office to finish processing. To stay informed about the application’s progress, they can track it by selecting the following application for the CoC option. A download link for the CoC will be available after approval.
What Benefits Does The Online Certificate Of Coverage Tool Provide?
Because it takes less time to finish the CoC creation procedure overall, this new online tool has proven beneficial to the general population. You don’t need to manually enter information into the system because the web tool automatically sends the submitted data to CoC. The method produces the CoC in three working days, cuts down on processing time, and removes errors from the CoC. The following are some advantages of using this web tool:
- Shorter Time
- Reduced Price
- Both scalable and integrated
- Adjustable access
- Simple to use
- Information Transparency
- Not blocked money for a longer period
- Safe access