Workers in one country who are seconded by their employers to the other country with short-term jobs may be exempt from social security contributions in the host country for up to five years. The main objective of the SSA is to help ensure that workers working from one country to another do not pay double the social security tax. This can help reduce the cost of international operations between Japan and India and Japan. Benefits paid by international transferees under their respective social security schemes can be paid on conditional terms. This flash alert from the GMS briefly examines the social security agreement between India and Japan, signed on 16 November 2012, which came into force on 1 October 2016. The Social Security Agreement between India and Japan, signed on 16 November 2012, came into force on 1 October 2016. The Indian Ministry of Foreign Affairs issued a press release1, in which he indicated that the Social Security Agreement (SSA) was to come into force on 1 October 2016.2 Japanese and Indian employers who detach workers from the other country should consult with their qualified tax, social or global mobility experts to find that these workers can now be covered by the social security of their country of origin during the allocation period and apply for an exemption from the host country. Benefits acquired by international transferees under one country`s social security legislation are „exportable“ to the other country. 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. In addition, this SSA promotes the principle of reciprocity with regard to the benefits of workers posted by their employers in the other country.
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.