Indo-German pact on social security

Indians posted in Germany for a brief period of four to five years would not be required in future to pay to Germany’s social security fund. Nor would their companies be forced to pay both the “sending” country and host country social security contributions for their workers once an agreement inked today between the two countries is ratified by the German parliament in the coming months.

Last week, a new rule introduced by the country’s Employment Provident Fund Organisation made every foreign worker liable to pay 12 per cent of their full salary as PF to EPFO during their period of stay. They would forfeit the money when they leave, unless their country has a social security agreement with India.