India's social security pact with Canada comes into force

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Press Trust of India New Delhi
Last Updated : Aug 03 2015 | 9:42 PM IST
Employees posted by Indian establishments in Canada on a predetermined duration of up to 60 months are not required to contribute towards social security schemes in that country.
Similarly, the Canadian employees posted in India would enjoy the same benefit after producing a certificate of coverage certifying that they are contributing towards social security schemes such as PF and pension in their home country.
"In pursuance of the social security agreement (SSA) signed with Canada, Government of India has notified it...(it) has come into force with effect from August 1, 2015," the Employees Provident Fund Organisation's office order said.
As per the order, the SSA provides for detachment, totalisation and portability. Under the detachment clause, the employees of one country deputed by their employers to other country for short-term assignments are exempted from social security contributions up to a period of 60 months.
The clause would enable Indian as well as Canadian employees to avoid double social security contribution and enhance competitiveness of their products and services.
As per the government notification, EPFO has been identified as the agency to implement this SSA in India. It has also been authorised to issue certificate of coverage to employees of Indian establishment posted to Canada.
For availing this benefit, the Canadian workers are required to produce certificate of coverage, showing that they are covered under social security schemes under a statutory authority like EPFO in their country.
At present, social security agreements are operational with 14 countries -- Belgium, Germany, Switzerland, Denmark, Luxembourg, France, South Korea, Netherlands, Sweden, Czech epublic, Austria, Finland, Norway and Hungary.
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First Published: Aug 03 2015 | 9:42 PM IST

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