India Germany social security agreement to begin from May

A comprehensive Social Security Agreement (SSA) signed between India and Germany way back on October 2008 will finally become operational from May 1, 2017. There are about 68,500 Indians in Germany, most of whom are working as professionals or are self-employed.

Under the agreement, Indian workers shall be entitled to the export of the social security benefit if they relocate to India after the completion of their service in Germany. Also those with short term contract (up to five years) will not pay social security contribution under the German law provided they continue to make social security payment in India. The benefits shall be available even when the Indian company sends its employees to Germany from a third country. To add to this, the period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility for social security benefits.

Earlier on Friday, the two sides exchanged instruments of ratification, paving way for it coming into force from next May. It provides for equal treatment and establishes the rights and obligations of citizens of both the countries. It also allows unrestricted pensions payment even in case of residence in the other contracting state (benefits export principle). As on date, India has signed and operationalised Social Security Agreements (SSAs) with 18 countries – Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Hungary, Japan, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, and South Korea.