Agreement Between Japan And The Republic Of India On Social Security
Under the agreement, affected workers between India and Japan can remain in their countries of origin for social security, provided the specific conditions of the agreement are met. Benefits paid by international transferees under their respective social security schemes can be paid on conditional terms. The agreement allows the initial issuance of coverage certificates for up to five years, provided the conditions are met. Employers who have affected workers between India and Japan should take steps to qualify for benefits under the agreement. In general, the existence of a strong SSA can help improve trade and economic activities between Japan and India. Similarly, for Indian workers when they are transferred to Japan, employers should receive a certificate of coverage in India and/or benefit from Japan`s social security benefits. Under the terms of the agreement, a CoC can be purchased for up to five years. This period may be extended after consultation with the competent authorities of both countries. The Social Security Agreement between India and Japan, signed on 16 November 2012, came into force on 1 October 2016. India`s Foreign Ministry issued a press release1 stating that the Social Security Agreement (SSA) is expected to enter into force on 1 October 2016.2 Key features of the India-Japan agreement. This should help workers who are trying to decide whether to contract in Japan or India to make a positive decision in favour of the transfer, knowing that the social security contributions they pay in the country where they work on the allowance are in addition to the contribution period in their home country to determine the right to benefits. The SSA between India and Japan has lasted nearly four years since it was signed in November 2012. The entry into force of this SSA is a welcome step, as this SSA will have a significant impact on employers who have affected workers between India and Japan.
The service time provided by a worker in the host country is added, under certain conditions, for the purposes of eligibility under the social security scheme in his country of origin. Japanese and Indian employers who send workers to work in the other country should consult with their qualified experts in taxation, social security or global mobility to find that workers from one country who are seconded by their employers to the other country where they are employed in the short term can benefit from an exemption from social security contributions in the host country for up to five years.