EPF maze: service gap glitch could leave NRIs out in cold

Overseas stints can derail gratuity, EPF if employers pause contributions or mark exit dates

- Aprajita Sharma

Mr. A thought it was simple—take a year-long posting in the UK, return, and continue where he left off. But when he applied to withdraw his EPF, the claim was rejected. The EPFO flagged a 12-month gap in his service record—no contributions, no payout. He’s now trying to explain that he was employed, but just posted abroad. He’s not alone. From Boston to Singapore, many Indians working overseas are finding their PF withdrawals blocked by missed contributions, Aadhaar mismatches, or service overlaps—even though their money remains intact.

Service gaps, missing UANs and dead-end claims Some employers mark an exit date before sending staff abroad and a fresh joining date on return. This creates a service gap, costing employees their gratuity that needs five continuous years. However, Mr. A’s employer took a different approach—kept him on payroll but paused EPF contributions during his UK stint. Contributions resumed, but the EPFO treats it as a break. The funds remain in his account, but without EPFO’s nod, he can’t access them.

For those who left India before Aadhaar became mandatory, PF withdrawals can be a dead end. Aadhaar is now linked to the Universal Account Number (UAN), needed to access EPF online. But what if you don’t have one?

Arvinder Gujral, who moved to Singapore in 2017, is stuck. His last Indian employer (2014–2018) is now shut, and while he has a UAN for that period, his earlier service (2009–2014) isn’t linked. With no Aadhaar link, he can’t access the portal. Multiple EPFO grievances later, he’s still waiting—now with a consultant’s help.

For NRIs like Gujral, lack of a UAN or Aadhaar link can effectively lock them out of their PF accounts indefinitely.