ID :
23484
Thu, 10/09/2008 - 13:46
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http://m.oananews.org//node/23484
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India, Germany ink social security pact
New Delhi, Oct 8 (PTI) Indian nationals working in Germany on short-term basis would now be exempted from making any social security contribution as the two countries have agreed to waive off such a practice.
India and Germany Wednesday inked the Social Security
Agreement which waives off social security contributions by
Indian nationals for a period of four years and extendable by
another year.
German nationals working in India will also receive
similar benefits on a reciprocal basis.
The move is also expected to make Indian companies more
competitive while bidding for projects in Germany. Till now,
the companies were at a disadvantage due to the high rate of
social security tax.
"This agreement would make Indian companies more
competitive since exemption from social security contribution,
in respect of their employees, will substantially reduce their
costs," Minister of Overseas Indian Affairs Vayalar Ravi told
reporters here.
The Agreement was signed by K. Mohandas, Secretary,
Ministry of Overseas Indian Affairs and visiting State
Secretary of the German Federal Ministry of Labour and Social
Affairs Franz-Josef Lersch-Mense and German Ambassador to
India, Bernd Muetzelburg.
"While working abroad, these employees will only be
subject to the social security regulations of their home
country. Thus, complicated changes and applications for
reimbursements will be avoided in the future," a German
official said.
The agreement is expected to benefit nearly 10,000 of the
68,500 Indian nationals working in Germany.
About 5,000 German nationals working in India are also
expected to benefit from the agreement.
The current agreement covers only Indian nationals in
Germany working on a short-term basis, Ravi said adding that
bilateral discussions for negotiating a full-fledged agreement
are currently underway.
It is expected that a full-fledged social security
agreement between the two countries covering provisions for
portability of social security benefits and totalisation of
insurance periods will be signed next year.
India recently signed similar agreements with France and
Belgium. The government has also finalised similar pacts with
the Netherlands and the Czech Republic.
Negotiations are underway for similar agreements with
Switzerland, the U.S., Norway and Sweden, Ravi said. PTI SKU
India and Germany Wednesday inked the Social Security
Agreement which waives off social security contributions by
Indian nationals for a period of four years and extendable by
another year.
German nationals working in India will also receive
similar benefits on a reciprocal basis.
The move is also expected to make Indian companies more
competitive while bidding for projects in Germany. Till now,
the companies were at a disadvantage due to the high rate of
social security tax.
"This agreement would make Indian companies more
competitive since exemption from social security contribution,
in respect of their employees, will substantially reduce their
costs," Minister of Overseas Indian Affairs Vayalar Ravi told
reporters here.
The Agreement was signed by K. Mohandas, Secretary,
Ministry of Overseas Indian Affairs and visiting State
Secretary of the German Federal Ministry of Labour and Social
Affairs Franz-Josef Lersch-Mense and German Ambassador to
India, Bernd Muetzelburg.
"While working abroad, these employees will only be
subject to the social security regulations of their home
country. Thus, complicated changes and applications for
reimbursements will be avoided in the future," a German
official said.
The agreement is expected to benefit nearly 10,000 of the
68,500 Indian nationals working in Germany.
About 5,000 German nationals working in India are also
expected to benefit from the agreement.
The current agreement covers only Indian nationals in
Germany working on a short-term basis, Ravi said adding that
bilateral discussions for negotiating a full-fledged agreement
are currently underway.
It is expected that a full-fledged social security
agreement between the two countries covering provisions for
portability of social security benefits and totalisation of
insurance periods will be signed next year.
India recently signed similar agreements with France and
Belgium. The government has also finalised similar pacts with
the Netherlands and the Czech Republic.
Negotiations are underway for similar agreements with
Switzerland, the U.S., Norway and Sweden, Ravi said. PTI SKU
