Social Security Agreement between India and Norway enters into force

Social Security Agreement between India and Norway enters into force

The Social Security Agreement between India and Norway enters into force on 1 January 2015.

 

India has signed Social Security Agreements with 18 countries. However, 13 of these Agreements have entered into force. Agreements between India and the following countries are now active:
Belgium,
Germany,
Switzerland,
Denmark,
Luxembourg,
France,
South Korea,
The Netherlands,
Hungary,
Sweden,
Finland,
Czech Republic and
Norway.

 

Agreements between India and the following countries are signed but not yet active: Japan, Canada, Austria, Portugal and Australia.

 

The Social Security Agreement between India and Norway will have the following benefits:

 

I. For Norwegian employees working in India:

 

(a) Exemption from social security (Provident Fund) contributions in India – provided certain conditions are met

(b) Early withdrawal of contributions from Provident Fund Scheme on completion of Indian assignment (if contribution made in India)

(c) Eligible for benefit from Pension Scheme (if contribution made in India)

(d) Eligible to receive refund from Provident Fund / Pension Scheme directly in the foreign bank accounts (under export benefits article)

 

II. For Indian employees working in Norway:

 

(a) Exemption from social security contribution in Norway – provided certain conditions are met

(b) Continue to be considered as “local employees” in India – As per India’s social security scheme, Indian employees who are exempt from host country social security contribution under the Social Security Agreements are not classified as “International Workers”

 

Employers who have assigned employees between India and Norway should review how the Agreement will affect future liabilities and employment costs.