India, Finland sign social security agreement

NEW DELHI: India and Finland today signed a comprehensive social security agreement that will relieve their workers from double taxation while working in each other's country.

Under the agreement, India workers on short term contracts of up to five years will not be required to make any social security contribution in Finland provided they continue to make social security payments India.

The relief will be available to Indian workers even if an Indian company sends its employees to Finland from a third country. Officials said similar relaxation will be provided to Finnish citizens working in India.

Currently about 5,000 Indians are living in Finland most of whom are working as professionals and self-employed.

The pact was signed here by Atul Tiwari, Joint Secretary in the Ministry of Overseas Indian Affairs, and Finland's ambassador Terhi Hakala.

Officials said Indian workers will be entitled to transfer their social security benefit if they relocate to India after the completion of their service in Finland.

India has already signed similar agreements with Germany, Belgium, France, Switzerland, The Netherlands, Luxembourg, Hungary, Denmark, Czech Republic, South Korea and Norway.

Social security agreements eliminate double payment on social security contribution, exempt detached workers from host country legislation and enable portability of pension and prevent loss of benefits.

Officials said there is a huge potential for Indians to take employment in Finland and the pact would help Indians take advantage of the situation in that country.

"The pact would also help boost trade and investment between the two countries," said a top official.