The agreement aims to ensure that workers and their employers are covered by a country`s social security law (India or Japan), avoiding dual social security obligations. Under the agreement, affected workers between India and Japan can remain in their countries of origin for social security, provided the specific conditions of the agreement are met. For example, Japanese workers sent to India by a Japanese employer with a CoC are exempt from Indian Pension Fund contributions, provided they continue to contribute to the Japanese social security system. Under the terms of the agreement, a CoC can be purchased for up to five years. This period may be extended after consultation with the competent authorities of both countries. The agreement allows the initial issuance of coverage certificates for up to five years, provided the conditions are met. Under certain conditions, Indian and Japanese employers should now be able to obtain a Certificate of Guarantee (CoC) for their workers working between India and Japan, in order to remain in compliance with the social security legislation of the country of origin and to apply for an exemption from the social security legislation of the host country. Employers should also review the terms of the allowance to ensure that they have the right to cover the agreement and to reduce the potential tax burdens on businesses. The contribution period in one country will be added, if necessary and subject to the provisions of the agreement, to the duration of the other country`s contribution to the determination of capacity. With regard to Japanese workers on assignment in India in particular, employers should take a number of measures based on the status of the assignment: employers who have affected workers between India and Japan should take steps to qualify for the benefits applicable under the agreement. For workers already in service on the effective date of the agreement (October 1, 2016), the five-year deadline is set for the effective date (October 1, 2016).
India has now signed and concluded agreements with the following 17 countries: Belgium, Germany, Switzerland, Denmark, Luxembourg, France, South Korea, the Netherlands, Hungary, Sweden, Finland, the Czech Republic, Norway, Austria, Canada, Australia and now Japan. Benefits under the agreement must be paid in both countries – India or Japan. Key features of the India-Japan agreement For example, a Japanese worker may, once selected, receive benefits under the contingency fund system, either in an Indian bank account or in a Japanese bank account. . With regard to Japan, the agreement applies in particular: for Indian workers in the event of a transfer to Japan, employers should receive a certificate of coverage in India, apply for an exemption from the Japanese national pension system and benefit from the existing benefits of the Japanese pension system. However, Indian workers who obtain a coverage certificate in India must register for the Japanese health insurance system, either through the company`s health insurance union or through the local jurisdiction. A social security agreement between India and Japan was signed on 16 November 2012 and came into force on 1 October 2016.