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India and Germany have decided to sign a Social Security agreement on October 8, 2008. The agreement will enable both the countries to simplify regulations on social security issues between them. Under the new agreement, the interests of the people working in either country will be protected. The professionals sent from India-based companies to their German subsidiaries, or those being sent by German companies to India-based branches will be exempted from social security contributions in their host country for a period of 48 months. However, the period can be extended for another 12 months.
Although the employees will be freed of social security regulations of their host country, they have to abide by the regulations of their own country, said the German embassy. The new Indo-German agreement will be signed by Mr K. Mohandas of the Ministry of Overseas Indian Affairs and German Ambassador to India, Bernd Muetzelburg. Meanwhile, according to German official, the agreement will be operational after the official consent of both Houses of the German Parliament. Earlier on September 30 this year, India has inked a similar pact with France during Prime Minister Manmohan Singh's visit to that country.
