Signature of Indo-German Social Security Agreement
Improvements for Employees and Pensioners
German Social Minister Ursula von der Leyen and the Indian Minister of Overseas Indian Affairs, Vayalar Ravi
German Social Minister Ursula von der Leyen and the Indian Minister of Overseas Indian Affairs, Vayalar Ravi, signed the Indo-German Social Security Agreement in Berlin today. The Agreement guarantees and coordinates the social protection of German and Indian nationals with regard to the respective pension insurance systems, in particular in cases where these nationals reside in the other contracting state. It integrates the provisions of the Posting Agreement that has been in force since 2009 and already includes important rules for Indian and German enterprises and their employees who are temporarily posted to the other contracting state:
The Indo-German Social Security Agreement moreover creates advantages for all persons not covered by the provisions of the Posting Agreement and who are thus employed in the other contracting state subject to compulsory pension insurance coverage.
- Through the totalisation of insurance periods completed in the other contracting state and insurance periods in their home country, German nationals can acquire pension rights on the basis of their insurance periods completed in India, and Indian nationals can acquire pension rights on the basis of insurance periods completed in Germany.
- In future, these pensions will be exported to the respective other country without any deductions.
In view of the broad and intensive external trade relations that Germany has with India, these arrangements are in the interest of German enterprises and their employees posted in India.
Of all the EU countries, Germany is India’s most important trading partner. Since the early 1990s, bilateral trade has grown tremendously. In view of the considerable growth potential, experts forecast an increase in the trade volume from 15.4 billion Euro in 2010 to 20 billion Euro by the end of 2012.
The Agreement has been designed according to principles that also apply in the European Union. In Germany, the signed Agreement now has to be adopted by the German Bundestag and the Bundesrat. It can enter into force as soon as India will have concluded its Parliamentary procedures, too.