India and Germany have ratified the Social Security Agreement (SSA), which will come into force from May 1 this year, to help promote more investment flows between the two countries.
The SSA will also integrate the provisions of the 2008 social insurance pact that exempts detached workers of the two countries from making social security contributions in either countries so long as they were making such contributions in their respective countries, the External Affairs Ministry said, adding the 2008 pact will then cease to be in force. The two sides have exchanged instruments of ratification on Friday.
Watch what else is in the news
“The new agreement establishes the rights and obligations of nationals of both countries and provides for equal treatment of the nationals of both countries and unrestricted payment of pensions even in the case of residence in the other contracting state (benefits export principle).
“The requirements to be entitled to a pension can be met by aggregating the periods of insurance completed in India and Germany, whereby each country pays only the pension for the insurance periods covered by its laws. The period of posting will be up to 48 calendar months,” the ministry said.
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.