India’s social security pact with Canada comes into force
The social security pact between India and Canada which was approved by Union Cabinet in 2013 comes into force after two years of long waiting.
According to the pact the employees posted by Indian entities in Canada are not required to contribute towards Canada’s social security schemes for period of 60 months and similarly the Canadian employees posted in India would enjoy the same benefit.
The employees on both the countries will be able to enjoy this benefit only when they produce a certificate of coverage that specifies that they are contributing towards social security schemes such as PF and pension in their home country.
This pact was sign to enable Indian as well as Canadian employees to avoid double social security contribution and to enhance competitiveness of their services and products.
Government has authorised Employment Provident Fund Organisation (EPFO) to implement social security agreements in India and to issue certificate of coverage to the employees posted by Indian entities to Canada.
Note: Currently India’s Social Security Agreements is operational in fourteen countries – France, Germany, Switzerland, Belgium, South Korea, Denmark, Netherlands, Luxembourg, Sweden, Finland, Czech Republic, Norway, Hungary and Austria.
Categories: Economy & Banking Current Affairs