The agreement was signed by Shri Atul Kumar Tiwari, Joint Secretary, Ministry of Overseas Indian Affairs on behalf of Government of India and by Ms. Terhi Hakala, Ambassador of Finland to India on behalf of Government of Finland, in the presence of Shri Parvez Dewan, Secretary, Ministry of Overseas Indian Affairs.
This agreement will enhance cooperation on social security between the two countries. The Social Security Agreement with Republic of Finland will provide for the following benefits to Indian nationals working in Finland:
a. For short term contract up to 5 years, no social security contribution would need to be paid under the Finnish law by the detached workers provided they continue to make social security payment in India.
b. The above benefits shall be available even when the Indian company sends its employees to Republic of Finland from a third country.
c. Indian workers shall be entitled to the export of the social security benefit if they relocate to India after the completion of their service in Republic of Finland.
d. The self-employed Indians in Republic of Finland would also be entitled to export of social security benefit on their relocation to India. The period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility of social security benefits.
There are about 5,000 Indians in the Republic of Finland most of whom are working as professionals and self-employed. However, there is a huge potential for Indian workers to take employment in the Republic of Finland owing to the huge labour supply gap in the market. As such, a bilateral Social Security Agreement with Republic of Finland is a significant requirement to take advantage of the emerging employment opportunities and to strengthen the trade and investment between the two countries. This bilateral Social Security Agreement will enhance trade and investment between the two countries.
So far India had signed twelve Social Security Agreements with Belgium, Germany (Social Insurance), Switzerland, France, Luxembourg, the Netherlands, Hungary, Denmark, the Czech Republic, Republic of Korea, Norway and Germany (Comprehensive SSA).