Press Release: India-Japan Social Security Agreement (21 July 2016)
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Press release> Press Release: India-Japan Social Security Agreement (21 July 2016)
Press Release: India-Japan Social Security Agreement (21 July 2016)
India-Japan Social Security Agreement
July 20, 2016
The Social Security Agreement between India and Japan was signed in Tokyo on November 16, 2012. The Ministry of External Affairs (Investment, Technology Promotion and Energy Security Division), the competent authority for negotiating and concluding SSAs along with the Employees Provident Fund Organization (EPFO) has completed the formalities for the Agreement to enter into force.
The Implementing Arrangement under the SSA and the Administrative Arrangement for implementation of the agreement between the two countries were exchanged on 9th June 2016. Earlier today the two sides have exchanged Note Verbales in accordance with Article 28 of the Agreement notifying the completion of the respective constitutional and legal procedures required for the entry into force of the Agreement. The Article 28 also mentions that the Agreement shall enter into force on the first day of the fourth month following the date of receipt of last notification. Therefore, the Agreement on Social Security between India and Japan shall enter into force with effect from 1st October 2016.
Bilateral SSAs are concluded with other countries protect the interests of Indian professionals, skilled workers working abroad by providing the following benefits:
a) Avoiding making double social security contributions: Once an SSA is signed between India and a foreign country, it exempts the Indian worker (working on short term contracts abroad) from making a social security contribution in that foreign country. This exemption is provided only if the Indian worker is covered under the social security system of India and continues to pay his/her contribution during the period of overseas contract.
b) Easy remittance of benefits (Exportability): An SSA between India and a foreign country enables the Indian worker/professional to remit his/her accumulated social security contribution made in a foreign country, in case of relocation to India/third country.
c) Aggregating the contribution periods (in two countries) to prevent loss of benefits (Totalization): An SSA allows aggregating residency periods of social security contribution made by the Indian worker / professional in India and the foreign country to qualify for retirement benefits.
As on date, India has signed and operationalized similar comprehensive Social Security Agreements (SSAs) with 15 countries. They are Belgium, Canada, Czech Republic, Denmark, Finland, France, Hungary, Luxembourg, Netherlands, Norway, Sweden, Switzerland, South Korea, Austria, and Australia. We have also signed a comprehensive SSA with Portugal, which is in the process of getting operationalized. In addition, we have a partial SSA with Germany, which is already operationalized.
The comprehensive SSA between India and Japan when operational from 1st October 2016 will favourably impact the profitability and competitive position of Indian and Japanese companies with foreign operations in either countries by reducing their cost of doing business abroad. Thousands of Indian and Japanese workers who are working in Japan and India respectively will benefit from the agreement. The SSA will also help more Japanese companies to consider India as a destination for their manufacturing investments.
