RCA

The Social Security Agreements(SSA) aim at eliminating dual social security taxation, achieving equality on the principles of reciprocity and is intended to benefit the employees and employers of both India and the other country. Once an SSA is signed between India and another country, the employees would generally be entitled to the following benefits under a comprehensive agreement:

Detachment
The expatriate employees could take advantage of the “Detached Worker Rule”. For e.g.: employees posted to/from India on short term assignment for a specified period need not remit social security contribution in the host location, provided the employee continues to contribute to the social security of the home country. For this purpose, a “Detachment Certificate” or a “Certificate of Coverage” issued by the home country, serves as a proof of exemption from social security contributions on the same earnings in the host country.

Export of Benefit
Social Security benefits such as pension is freely payable by the host country to any location at the choice of the employee without any restriction.

Totalisation
The period of contribution by an employee in the host country will be counted for the purpose of arriving at the “eligibility” for availing benefits under the respective home / host country social security schemes. The benefits would thereafter be provided on a pro-rata basis by each country based on the period of contributions made in the respective country.

Status of India’s SSA with other countries:

The following SSAs have come into force:

Belgium - September 1, 2009. The Employees Provident Fund Organisation (EPFO) has been identified as the liaison agency for the implementation of this agreement in India. The EPFO is in the process of issuing Certificate of Coverage for employees based on joint applications made by both the employee and employer.

Germany - October 1, 2009 . It is understood that the approval process in Germany is not complete and that this agreement would be effective retrospectively once the process is complete.. It is to be noted that the German agreement is a limited agreement - only detachment is provided for, it does not provide for totalisation and export of benefits.

SSAs which are signed (effective date yet to be notified):
       Luxembourg,  Switzerland, France

SSAs under negotiation:

Australia, Canada, Czech Republic, Denmark, Hungary, Netherlands, Norway, Sweden, and USA.