India, Germany sign social security pact
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Last Updated: Thursday, October 13, 2011, 00:03
  
New Delhi: India and Germany on Wednesday signed a comprehensive social security agreement that will relieve their workers from double taxation and provide for cooperation in areas of labour market expansion and orderly migration.

The pact was signed in Berlin by Overseas Indian Affairs Minister Vayalar Ravi and Germany's Federal Minister of Labour and Social Affairs Ursula von der Leyen.

This agreement subsumes the earlier Indo-German agreement on Social Security signed in October 2008.

Under the agreement, India workers on short term contracts of up to five years will not be required to make any social security contribution in Germany provided they continue to make social security payments India.

The relief will be available to Indian workers even if an Indian company sends its employees to Germany from a third country. Officials said similar relaxation will be provided to German citizens working in India.

There are about 68,500 Indians in Germany most of whom are working as professionals and self-employed.

Officials said Indian workers will be entitled to transfer their social security benefit if they relocate to India after the completion of their service in Germany. India has already signed similar agreements with Belgium, France, Switzerland, The Netherlands, Luxembourg, Hungary, Denmark, Czech Republic, South Korea and Norway.

Social security agreements eliminate double payment on social security contribution, exempt detached workers from host country legislation and enable portability of pension and prevent loss of benefits.

In their talks, both Ravi and Leyen expressed satisfaction over the bilateral ties between the two countries which entered its 60th year this year.

Earlier this year, India and Germany had set a target of USD 20 billion for bilateral trade by 2012.

PTI


First Published: Thursday, October 13, 2011, 00:03


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