The recent Indian Social Security
Scheme applicable for local and
international workers resulted in
additional compliance and costs for the
expatriates, as contributions were
required to be made in both home and
host countries. With a view to avoid
such non discrimination and treat the
international workers at par, Social
Security Agreements (SSA) were
signed by India with Belgium, France
and Germany.
Recently, the SSA with Belgium was
notified and is effective from 1st
September 2009. The SSA provides for
exemption from the contributions to be
made in the host country in cases
involving short term deputation (up to 5
years). The contributions are to be
made in the host country only for long
term assignments (more than 5 years)
and local employment in the host
country. A Detachment Certificate or
Certificate of Coverage is required to
be obtained in case of short term
assignments to host country with a view
to claim exemption from contributions in
the host country. The Government of
India has issued Handbook and
Frequently Asked Questions (FAQs)
dealing with various aspects and
procedural formalities relating to
implementation of SSA between India
and Belgium.
As its next step to avoid situations of
double coverage or no coverage under
social security schemes, India has
notified its SSA with Germany and the
same would be effective from 1st
October 2009. The agreement would
be applicable for employees who are
on existing assignments as on 1st
October 2009 or those assigned after
1st October 2009. While the complete
text of India Germany SSA is not
available, like the SSA with Belgium,
the India Germany SSA provides
exemption from contributions in the
host country for short term
assignments (up to 4 years,
extendable to another one year on
fulfillment of prescribed conditions). An
application for Certificate of Coverage
under the home country is required to
be made to the local authorities (in
case of India – an application is
required to be made to Regional
Provident Fund Commissioner of the
Employees’ Provident Fund
Organisation) in order to claim
exemption from contributions in the
host country.
Further, India has also signed social
security agreements with France and
Switzerland. However, the same is not
yet active.
India is currently in discussion with the
USA to sign a similar deal. Besides,
talks are also on with the Netherlands,
Czech Republic, Hungary, Norway, Switzerland, Sweden, Luxembourg and Australia for
signing of similar social security agreements.
The SSA would assist in avoiding the impact on cash
flows by avoiding dual contributions to be made in
home and host countries.
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