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Tuesday, 21 September, 2021
Home NATIONALFinland-India social security deal enters into force in August
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Thu, 19 Jun, 2014 12:04:59 AM
FTimes Report, June 19
 
File picture of a Social support (Kela) office in Helsinki. Photo Lehtikuva.
The Agreement on Social Security between Finland and India will come into effect from August 1, 2014 over two years inside the signing of the agreement, said an official press release on Wednesday.
 
The agreement will affect the social security of the people moving between Finland and India and shall apply in particular to pensions. 
 
The agreement will ensure that posted or detached employees will not be required to pay pension contributions in double, which is of great importance to Finnish companies based in India and their employees. 
 
An employee sent to India by a Finnish employer can remain in the Finnish pension scheme for the time the employee is posted in India, but for no longer than five years.
 
The agreement also includes provisions on payment of pensions between the two countries and will make applying for pension simpler.
 
The Agreement on Social Security between Finland and India was signed in June of 2012 and Finland’s parliament approved the change on October 17, 2013 to ensure cooperation of social security with a view to increase trade and investment between the countries. 
 
As per the agreement, for short-term contracts up to five 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 an Indian company sends its employees to Finland from a third country. 
 
Indian workers shall be entitled to the export of the social security benefits, 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 benefits 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. 
 
 
 
 
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