Prime Minister Stephen Harper and Manmohan Singh, Prime Minister of India, today witnessed the signing of the Canada-India Social Security Agreement. This will enable Canada and India to better coordinate the pension benefits and contributions for their citizens who have worked in both countries. The Prime Minister made the announcement during his six-day state visit to India, from November 3-9, 2012.
“Our Government is committed to helping facilitate the flow of people and ideas between Canada and India,” said Prime Minister Harper. “The agreement signed today will reduce the pension contribution costs for Canadian companies sending employees to India and ensure that those same Canadian employees receive the pension benefits they are entitled to for time spent working abroad.
The Canada-India Social Security Agreement will help eligible individuals qualify for retirement, disability or survivor benefits, and enable employees from Canada who are sent to work temporarily in India to continue to contribute to the Canada Pension Plan and be exempt from contributing to the Employees’ Pension Scheme of India. The Agreement will also exempt Canadian businesses from paying Indian pension plan contributions for their employees sent to work temporarily in India, thus resulting in substantial savings. Indian companies and Indian employees sent to work in Canada will also benefit from the same advantages.
The Agreement between Canada and India will enter into force after both countries have completed their respective legal procedures, which is expected to occur in 2013.
Canada has signed a total of 56 international Social Security Agreements, of which 53 are in force.