The document discusses social security agreements (SSA) which are bilateral instruments aimed at protecting the social security interests of cross-border workers. In India, these agreements help avoid double coverage of social security contributions for employees working abroad and provide them with exemptions and benefits under both Indian and host country laws. The text outlines the structure and provisions of SSAs, their impact on international workers, and examples of existing agreements India has with various countries.

1. Social Security Agreements (SSA)
CA. Divakar Vijayasarathy

2. Credits and Acknowledgments
Thirumal V
CA Jugal Gala

3. Legends used in the Presentation
SSA Social Security Agreements
EPF Employees’ Provided Fund
EPFO EPF Organisation
COC Certificate of Coverage
IW International Workers

4. Presentation Schema
What is Social
Security
Social Security
Legislature in
India
Statutes for Social
Security
Background for
SSA
Social Security
Agreements (SSA)
Contents of SSA Detachments
Exporting of
Benefits
Totalisation of
Benefits
Certificate of
Coverage (COC)
International
Workers (IW)
Illustration
SSAs Entered into
by India
General Structure
of an SSA
Examples of
Indian SSAs

5. What is Social Security
The International Labour Organisation defines ‘social security’
as the protection which society provides for its members, through a series
of public measures,
against economic and social distress that otherwise would be caused by the
stoppage or substantial reduction of earnings
resulting from sickness, maternity, employment injury, unemployment,
invalidity old-age and death, the provision of medical care and the provision
of subsidies for families with children.

6. Social Security Legislation in India
Directive Principles of State Policy as contained in the Constitution of India require the State to inter alia:
Promotion of Welfare - promote the welfare of the people by securing and protecting, as effectively, the justice, social,
economic and political benefits of the national life [Article 38 of the Constitution]
Securing the Rights - make effective provision for securing the right to work, to education and to public assistance in
cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want [Article 41 of the
Constitution]
Conditions of Work - make provision for securing just and humane conditions of work and for maternity relief [Article
42 of the Constitution]

7. Statutes for Social Security
The Payment of
Gratuity Act, 1972
The Maternity
Benefit Act, 1961
The Employees’
Compensation Act, 1923
The Employees’ State
Insurance Act, 1948
The key social security statutes in India with respect to employees are:
The Employees’ Provident
Fund and Miscellaneous
Provisions Act, 1952 (“EPF
Act”)
The EPF Act is India’s most significant social security legislation
It has been enacted to provide for provident funds, pension fund and deposit-linked insurance
It is administered by the Government of India through the Employees’ Provident Fund Organisation (EPFO)
An establishment in India, employing a minimum of 20 employees is required to register with the EPFO and
make provident fund (PF) contributions for eligible employees

8. Background for SSA
This enabled India to protect the interests of cross border workers by negotiating Social Security Agreements
(SSA) with other countries which had a significant inbound population into India
In order to eliminate the undue advantage foreign nationals had while exercising employment in India, and to
create a level playing field for Indians embarking on work outside India,
the Government of India in October 2008 introduced special provisions to define a new category of workers
called ‘International Worker’ (IW) who were required to mandatorily contribute to PF
On the contrary, Indian nationals working abroad were required to contribute to the social security scheme
of the respective country. However, these contributions were generally lost due to limited tenure overseas or
in failing to fulfill the minimum qualifying period of contribution or residence
Till 2008, foreign nationals exercising employment in India were not covered under the PF regulations, since
PF contributions were not mandatory
While cross-border issues arise in the areas of tax and immigration, social security issues too have
importance as they relate to the retirement benefits of the individual venturing beyond borders for
employment

9. Social Security Agreements
An SSA is a bilateral instrument to protect the social security interests of workers posted in another country
Indian employees
working abroad under
Indian employers,
without termination
of contract of
employment,
continue to make
social security
contribution in India
On account of the
assignment
undertaken abroad,
they may also be
required to make
social security
contribution under
the host country’s
laws
Ordinarily, such employees
do not derive any benefit
from such contributions
made outside India on
account of restrictions on
withdrawal and
stipulations pertaining to
duration of stay
SSA is intended to
provide for avoidance
of double coverage
i.e., coverage under
the social security
laws of both the home
and host countries

10. Contents of SSA
An SSA generally addresses the following items:
Detachment Exportability of Pension Totalisation of Benefits

11. Detachment
An exemption, allowed to employees sent on an assignment to another country,
from social security contribution in the host country,
provided they are complying with the social security system of the home country

12. Exportability of Pension
A provision allowing employees sent on assignment to another country,
and who are making social security contributions under such host country’s regime,
to export the benefits to their home countries or to beneficiaries in a third country,
on completion of their assignment or on retirement

13. Totalisation of Benefits
Period of service rendered by an employee in the host country is to be counted for checking the
“eligibility” of social security payment in the home country and vice-versa
However, the payment is restricted to the length of service in that country on a pro-rata basis

14. Certificate of Coverage (COC)
A certificate of coverage or a detachment certificate is a document that must be obtained by an International Worker
(“IW”) so as to avail the benefits under the applicable SSA
A COC is issued in the employee’s home country by the social security authority in accordance with the provisions of the
relevant SSA
The COC acts as a proof of detachment, pursuant to which, exemptions from the applicable social security compliances at
the host country are allowed
EPFO is the authorized authority to issue COC for Indian Nationals. It can be obtained from the EPFO’s portal for IW
Site: https://epfoportals.epfindia.gov.in/iwu/
COC is issued to only the employees posted in countries with which India has an SSA

15. International Workers (IW)
- an Indian employee having worked or going to work in a foreign country with which India has entered into a SSA
- and being eligible to avail the benefits under a social security programme of that country,
- by virtue of the eligibility gained or going to gain, under the said agreement
an employee other than an Indian employee, holding other than an Indian Passport, working for an establishment in
India to which the EPF Act applies
The Government of India, in October 2008, amended the schemes under the EPF Act to bring IW into its ambit
Pursuant to the amendment, expatriate employees working in India are required to make PF and pension
contributions in India, of 12% of the IW’s total salary
A matching contribution is to be made by the employer for each IW

16. Withdrawal from PF and Exclusions
IWs are allowed to withdraw the PF accumulations only upon:
• Retirement from service after 58 years of age
• Retirement on account of permanent and total incapacity for work due to bodily or
mental incapacity
• In respect of workers covered under SSA, on such grounds as specified in the agreement
‘Excluded employees’ need not contribute to PF:
• IW contributing in his home country with whom India has entered into SSA on a reciprocity basis (same provisions
in other country) and enjoying the status of detached worker for the period and terms as specified in such SSA, or
• IW contributing in his home country with whom India has entered into Bilateral Comprehensive Economic
Arrangement prior to 1 October 2008 containing a clause on social security and which specifically exempts natural
persons of either country to contribute

17. Illustration
A company is sending employee A for duration of 1 year to Country B. India has an SSA with Country B and Employee A shall
therefore qualify as an ‘international worker’
By obtaining COC from EPFO in India he can get detachment from contribution in Country B under its social security programmes
Employee B, a national of Country B, is sent to India by his company on an assignment for a period of a year
It would be possible for Employee B to qualify as an ‘excluded
employee’ by obtaining a COC from the social security
authorities at Country B and thereby avoid incurring social
security expenses in India
Employee B and his Indian employer would have had
to comply with the EPF Act and contribute 12%
each, of the total salary
Where India has in effect an SSA with Country BIn the absence of India-Country B SSA

18. SSAs Entered by India
India has entered into 18 operating SSAs
Belgium Germany Switzerland Portugal France Denmark
Republic of
Korea
Netherlands Hungary Finland Sweden Czech Republic Norway Austria
Canada Australia Japan
Grand Duchy Of
Luxembourg

19. General Structure of an SSA
Part I General Provisions
Article 1 Definitions
Article 2 Legislative Scope
Article 3 Personal Scope
Article 4 Equality of Treatment
Article 5 Export of Benefits
Part II Provisions concerning the Applicable Legislation
Article 6 General Provisions
Article 7 Special Provisions
Article 8 Civil Servants, Members of Diplomatic Missions and Posts
Article 9 Modification Provision
Part III Provisions concerning Benefits
Chapter 1 Provisions relating to Host country Benefits
Chapter 2 Provisions relating to Indian Benefits
Chapter 3 Common Provisions
Part IV Miscellaneous Provisions
Article 19 Responsibilities of the Competent Authorities
Article 20 Administrative Collaboration
Article 21 Claims, Notices and Appeals
Article 22 Confidentiality of Information
Article 23 Payment of Benefits
Article 24 Resolution of Disputes
Part V Transitional and Final Provisions
Article 25 Events prior to the entry into force of the
Agreement
Article 26 Revision, prescription, forfeiture
Article 27 Duration
Article 28 Guarantee of rights that are acquired or in the
course of acquisition
Article 29 Entry into Force

20. Examples of Indian SSAs
Article 5 of India-Australia SSA – Export of Benefits
1. Benefits of one Contracting Party, when payable by virtue of this Agreement, are Payable to persons
who are residents of, and in the territory of either Contracting Party.
2. In relation to Australia, for the Purposes of paragraph 1 of this Article, any additional amount
(increase or supplement) that is payable under this Agreement, shall be payable to a person outside
Australia only for the period specified in the provisions of the Social Security Act 1991(Legislation of
Social Security in Australia).
Article 7 of India-Canada SSA - Detachments
An employed person who is subject to the legislation of a Contracting State and who is sent by his or her
employer to work in the territory of the other Contracting State shall, in respect of that work, be subject
only to the legislation of the first Contracting State as though that work was performed in its territory.
This coverage may be extended for more than 60 months with the mutual consent of the competent
authorities of both Contracting States.

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