Friday, 31 July 2015

EY Alert: Social Security Agreement between India and Canada to come into force with effect from 1 August 2015

The Social Security Agreement (the “Agreement”) between India and Canada was signed on 06 November 2012. The Agreement will now come into force with effect from 1 August 2015.

The Agreement will have the following benefits:

1. For Canadian nationals working in India:
                                                                                                                         
a. Exemption from social security contributions in India
b. Early withdrawal of contributions from Provident Fund Scheme on completion of Indian assignment (if contributions made in India)
c. Eligible for benefit from Pension Scheme (if contributions made in India)
d. Eligibility to receive refund from Provident Fund directly in the foreign bank accounts (under export benefits clause)

2. Benefits for Indian employees working in Canada:

a. Exemption from social security contributions in Canada
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 contributions under the social security agreements are not classified as “International Workers”.


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