India Finland Social Security Agreement

India Finland Social Security Agreement: All You Need to Know

India and Finland have recently signed a social security agreement that aims to strengthen the bilateral relationship between the two countries. The agreement covers areas such as pensions, disability benefits, and medical coverage for employees working both in India and Finland. In this article, we will discuss the important aspects of the India Finland Social Security Agreement.

What is Social Security Agreement?

A social security agreement is an international treaty that helps people who work or have worked in two or more countries be eligible for social security benefits they may be entitled to. Such agreements allow people to avoid paying social security tax in both countries and give them access to benefits they may not be entitled to otherwise.

Key Provisions of the India Finland Social Security Agreement

Pension Benefits:

The agreement provides for the export of pension benefits to those employees who have worked in India and Finland. If an employee has paid social security taxes in both countries, they would receive a pension as per the laws of the country where they have worked for a longer duration.

Disability Benefits:

The agreement gives beneficiaries access to disability benefits in the event of an accident or illness that renders them unfit for work. If an employee is disabled and unable to work in the country where they reside, they can receive disability benefits from the other country as per the laws of that country.

Medical Coverage:

The agreement covers medical coverage for employees who have worked in India and Finland. If an employee is working in one country and is injured or falls sick in the other country, they are eligible for medical coverage.

Social Security Tax:

The agreement envisages that employees would pay social security taxes only in the country where they are working. The social security tax rates of the country where the employee is working would apply to the employee under this agreement.

Who is Covered Under the Agreement?

The agreement applies to employees and self-employed individuals who are citizens of India or Finland and are working in the other country. The agreement would also cover family members of these individuals who are dependent on them.

Conclusion:

The India Finland Social Security Agreement is an important step in strengthening the bilateral relationship between the two countries. The agreement is expected to benefit employees who work in both countries by ensuring that they are eligible for social security benefits they are entitled to. It is hoped that other countries would also sign similar agreements, which would help in making the lives of cross-border workers easier.