A comprehensive Social Security Agreement (SSA) was signed by the Minister of Overseas Indian Affairs and Civil Aviation, Shri Vayalar Ravi and the Federal Minister of Labour and Social Affairs of Germany, Dr. Ursula von der Leyen in Berlin. The Agreement which subsume the earlier Indo-German agreement on Social Security on 8th October 2008 will enhance cooperation on social security between the two countries. The Agreement with Germany will provide for the following benefits to Indian nationals working in Germany:
a) For short term contract up to five years, no social security contribution would need to be paid under the German law by the detached workers provided they continue to make social security payment in India.
b) The above benefits shall be available even when the Indian company sends its employees to Germany from a third country.
c) 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.
d) The self-employed Indians in Germany would also be entitled to export of social security benefit on their relocation to India.
e) 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.
This is the 60th year of diplomatic relationship between India and Germany. There are about 68,500 Indians in Germany most of whom are working as professionals and self-employed. During the visit of German Chancellor to India in May 2011, both India and Germany reaffirmed that the bilateral trade should reach US$ 20 billion by 2012. There is a huge potential for Indian for Indian workers to take employment in Germany. As such, a bilateral Social Security Agreement with Germany is a significant requirement from the futuristic point of view to take advantage of the emerging employment opportunities and to strengthen the trade and investment between the two countries.
India has signed similar agreements with Belgium, Germany (Social Insurance for detached workers), France, Switzerland, The Netherlands, Luxembourg, Hungary, Denmark, Czech Republic, the Republic of Korea and Norway.
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