India, Germany confirm on Social Security Agreement to improve investments
New Delhi [India], Feb. 24 (ANI): India and Germany on Friday approved on a comprehensive Social Security Agreement (SSA) that will come into effect from May, to improve investment flows between the two countries.
"The agreement establishes the rights and obligations of nationals of both countries and provides for their equal treatment and unrestricted payment of pensions even in case of residence in the other contracting state (benefits export principle)," said a statement from the Ministry of External Affairs.
The agreement, signed on October 12, 2011, of which instruments of confirmation were exchanged on Friday, is expected to reduce the operational costs of Indian and German companies operating in either of the countries.
"The requirements to be entitled to a pension can be met by aggregating the periods of insurance completed in India and Germany, whereby each country pays only the pension for the insurance periods covered by its laws. The period of posting will be up to 48 calendar months," said the statement. (ANI)