Social Security Agreement Between India And Japan Comes Into Force With Effect From 1 October 2016

The Social Security Agreement ('the SSA') between India and Japan will come into force with effect from 1 October 2016. Accordingly, it's time that the employers who have assigned employees between India and Japan should take steps to claim applicable benefits under the SSA.

Action points

1. In respect of Japanese employees currently on assignment to India, the employers should begin the process of applying for Certificate of Coverage in Japan and also stop contributing to Indian social security immediately from the effective date of Certificate of Coverage. However, it is advisable to continue reporting the employees in Form IW-1 but now as 'excluded employees'.  Further after the end of assignment, such employees can claim withdrawal from Provident Fund and Pension Scheme.