Finland Times

The Parliament on Thursday approved the Finland-India social security agreement to ensure cooperation of social security with the view to increase the trade and investment between the countries. 

The agreement will come into force after approvals by the Indian government and the president of Finland.

The Finland  president is scheduled to sign the legislative decision on October 25 , said an official press release.

The agreement would affect the social security of people moving between Finland and India and shall apply in particular to pensions.

The agreement would ensure that posted or detached employees would not be required to pay pension contributions in double, which is of great importance to Finnish companies based in India and their employees.

The agreement also includes provisions on payment of pensions between the states and would make applying for pension simpler.

Earlier, on June 12, 2012  Finland and India signed the agreement in New Delhi to ensure social security of their nationals while living in India and Finland as expatriate workers.

Terhi Hakala, Ambassador of Finland to India and Shri Atul Kumar Tiwari, Joint Secretary of the ministry of foreign affairs, India signed the agreement on behalf  of their respective countries.

This agreement will ensure various social security supports for the Finnish workers in India and Indian Workers in Finland.

As per the agreement, for short term contract up to 5 years, no social security contribution would need to be paid under the Finnish law by the detached workers provided they continue to make social security payment in India. 

The benefits shall be available even when the Indian company sends its employees to Finland from a third country. 

Indian workers shall be entitled to the export of the social security benefit, if they relocate to India after the completion of their service in Finland. 

The self-employed Indians in Finland would also be entitled to export of social security benefit on their relocation to India.

The period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility of social security benefits. 

This bilateral Social Security Agreement  would put positive impact on the trade and investment between the two countries.