Social Security Agreement between India and Italy
A Social Security Agreement (SSA) is a treaty between two countries that helps citizens who relocate internationally by safeguarding their social security benefits. The agreement defines the criteria for determining where an individual should be insured and the payment of social security benefits. Recently, India and Italy signed an SSA, and this article will outline the specifics of the treaty.
The social security agreement between India and Italy covers workers who are citizens of either country. The agreement aims to eliminate dual social security taxation while allowing workers to move between countries without losing benefits or having to make additional contributions. The agreement is valid for all types of social security benefits, including old-age, survivor, disability, sickness, and maternity benefits. There are also provisions for the payment of pensions for individuals who have worked in both countries.
The SSA defines the eligibility criteria for social security benefits in each country. In India, an individual must have contributed to the Employees` Provident Fund (EPF) or the National Pension System (NPS) to be eligible for social security benefits. On the other hand, in Italy, an individual must have contributed to the Italian social security system to be eligible for benefits.
The agreement also outlines the rules for coordination of social security benefits. For instance, if an employee works in both countries, their benefits will be calculated based on their contributions to both countries` social security systems. However, the total amount of benefits paid will not exceed the amount of benefits that would have been paid if the individual had only worked in one country.
The agreement also simplifies the process of claiming and receiving social security benefits. The provisions of the agreement allow individuals to apply for benefits in the country where they reside, eliminating the need to apply in both countries.
In conclusion, the social security agreement between India and Italy provides a framework for protecting the benefits of citizens who move between the two countries. The agreement simplifies processes and ensures that workers are not subject to dual taxation. The provisions of the agreement are aimed at making the lives of expats easier while safeguarding their future.