EPFO Tips: How can citizens of Nepal and Bhutan withdraw their PF and pension funds without Aadhaar? Learn the step-by-step guide..

Even if a Nepali employee doesn't have a bank account in India, the EPF and EPS rules apply to them just like Indian employees. Under the 1950 treaty, Nepali citizens are considered Indian employees under the EPF, and their UAN is generated using Aadhaar.

Updated EPFO ​​Rules for Nepal-Bhutan Employees
EPFO Rules for Nepal and Bhutan Citizens: The relationship between India and Nepal-Bhutan is not just one of two countries, but also one of bread and butter. Thousands of Nepali and Bhutanese citizens are employed in every corner of India. But when it comes to retirement or the PF and pension (EPS) benefits they receive upon leaving their jobs, a big question arises: will these people receive the benefits of EPF and EPS?

What does the EPFO ​​rule say?

Yes, the question often arises: if a Nepali employee doesn't have an Indian bank account, or has left his job and returned to his country, how will he receive his PF balance? Does Indian law consider him a foreigner or an Indian? Let's decode the EPFO ​​rules specifically designed for citizens of Nepal and Bhutan, and which are essential for every employee who has come to work here from across the border.

Are citizens of Nepal and Bhutan considered "international workers"?
People often assume that since Nepal and Bhutan are separate countries, their employees would fall under the category of international workers, whose PF deduction and withdrawal are more difficult. But Paragraph 83 of the EPF Scheme 1952 presents a significant twist. In fact, according to the rules, under the India-Nepal Peace and Friendship Treaty of 1950 and the India-Bhutan Friendship Treaty of 2007, citizens of these countries are considered Indian employees, not foreigners, when working in India.

What does this mean?
This simply means that a Nepali citizen will be subject to the same PF rules as an Indian citizen. They will not have to go through any special 'International Settlement' process.

Indian EPF rules will also apply to Nepal-Bhutan employees, with Aadhaar as the basis for generating UAN.
According to the rules of the EPF Scheme 1952, if an employee is a citizen of Nepal and is working in India under the 1950 Peace and Friendship Treaty, or a citizen of Bhutan and is employed here under the 2007 India-Bhutan Treaty, they will be considered an Indian employee for PF purposes. This means that UANs for such employees will be created in the same manner as for other Indian employees, and will be linked to Aadhaar.

Can a Nepali employee's UAN be created without Aadhaar or PAN? Learn the rules.
In simple terms, if a Nepali citizen is working in India under the 1950 Treaty of Peace and Friendship, or a Bhutanese citizen is employed under the 2007 India-Bhutan Treaty, they will be considered Indian employees under the EPF rules. This means that the UANs for such employees will be created like those for other Indian employees and will be linked to Aadhaar. Therefore, Aadhaar, PAN, and bank details will be required, just as for any Indian employee.

The UAN and Aadhaar Crisis
Yes, now in the digital era of 2026, the EPFO ​​has made everything online. In fact, Nepali citizens previously had some exemptions from the Aadhaar requirement, but now the rules are clear: they are considered Indian employees, and therefore, their UAN (Universal Account Number) will be generated based on Aadhaar. So, if a Nepali citizen is living in India and has a valid Aadhaar card, their KYC process will be exactly the same as that of an employee in Delhi or Mumbai.

How to withdraw PF upon returning to Nepal? Learn the correct and regulated method.
When many Nepali employees working in India return to their country, the biggest question they face is how to access their PF funds if their Indian bank account has been closed. According to EPFO ​​rules, PF or EPS settlements are made only to bank accounts that are linked to and active with their UAN. Under Paragraph 83 of the EPF Scheme 1952, Nepali citizens are considered Indian employees, so the same process applies to them. Generally, the EPFO ​​does not transfer funds directly to local bank accounts in Nepal. The amount first comes into the Indian account, then the employee himself can send it to Nepal through authorized remittance channel. So, it is advisable to keep the Indian bank account active till the settlement.

Avoid Mistakes When Leaving Your Job
If you are a citizen of Nepal or Bhutan and are employed in India, make sure to correct some important things beforehand, otherwise, your PF funds may be blocked. First, your name in the EPFO ​​records must match the name on your passport or citizenship certificate. Even a small spelling error can delay settlement. Aadhaar OTP is required for PF withdrawals, so your registered mobile number must be active. If you are employed, it's better to obtain a scheme certificate instead of withdrawing funds, so you can reconnect to future service.

India-Nepal Friendship and PF Rights
The benefits of the friendship treaty between India and Nepal are also reflected in the PF rules. In fact, the EPFO ​​treats Nepalese and Bhutanese citizens as Indian employees in many respects. All that's required is that your documents are correct and your bank account is active. If you have the correct information, you can file your PF claim even while in Nepal. In case of any problem, you can file an online complaint on the EPFiGMS portal, which provides assistance.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.