NEW DELHI: Canadian Prime Minister Stephen Harper, who along with Indian Prime Minister Manmohan Singh, witnessed the signing of the Canada-India Social Security Agreement by their ministers, said the agreement will enable the two countries to better coordinate the pension benefits and contributions for their citizens who have worked in both countries.
“Our Government is committed to helping facilitate the flow of people and ideas between Canada and India,” Harper said after the signing of the agreement.
“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 to 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 will come into force after the two countries complete respective legal procedures.
Canada has signed 56 such international agreements on social security with various countries.