Tax Insights
from Global Mobility
www.pwc.com
India: Social Security Agreement
with Norway enters into force,
providing benefits to mobile
employees
February 10, 2015
In brief
The Social Security Agreement (SSA) signed between India and Norway on November 2, 2010 has been
made operational with effect from January 1, 2015. The new agreement, similar to others that India has
entered into, provides various benefits for assignees working to and from these jurisdictions. Most
notably, it may enable assignees to continue social security contributions in their home country while
avoiding the obligation to contribute social security in the host jurisdiction – potentially decreasing
mobility costs.
In detail
The key features of the SSA are
as follows:
Legislation covered
In India, the SSA applies to the
following:
Employees’ Provident Funds
Scheme, 1952
Employees’ Pension Scheme,
1995
Employees’ Deposit-Linked
Insurance Scheme, 1976
In Norway, the SSA applies to:
The provisions of the 1997
National Insurance Act
concerning old age pension,
disability pension, funeral
grants and survivor’s pension
and associated regulations
The 2006 Labour and
Welfare Service Act and
associated regulations
The 2002 Family Allowances
Act and associated
regulations
The National Insurance Act
of February 28, 1997 and
associated regulations
Detachment
Workers who are deputed from
India to Norway will be exempt
from contributing to the
Norwegian social security
schemes upon obtaining a
Certificate of Coverage from the
social security authorities in
India and vice versa. However,
the maximum period of
detachment would be a period
up to 5 years.
Payment of benefits abroad
The provisions of the terms of
the SSA shall not be reduced or
modified where the beneficiary
chooses to reside in the territory
of other contracting state or a
third state.
Tax Insights
2 pwc
Totalisation of the period of
coverage
The SSA provides for the totalisation
of the period of coverage. The period
of contribution in one country (India
or Norway) will be included in the
period of contribution in the other
country in order to determine
eligibility for pension benefits under
Indian or Norwegian social security
(except for periods of overlap between
the two countries).
Transitional provisions
The SSA will not create any
entitlement to benefits for any period
prior to its entry into force.
The takeaway
The agreement with Norway is the
thirteenth of such agreements to come
into force. Other signed agreements
which are yet to be operational are
with Australia, Austria, Canada, Japan
and Portugal. One can expect these
agreements too to come into force in
the near future. Global mobility
managers should review whether this
new agreement impacts their current
assignee population and monitor the
timing of when these other
agreements may become effective.
Let’s talk
For a deeper discussion of how this issue might affect your business, please contact your regular PwC Global Mobility
Services professional or one of the following professionals from PwC India:
Global Mobility Services— India
Global Mobility Services —United States
SOLICITATION
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information
contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness
of the information contained in this publication, and, to the extent permitted by law, PwC does do not accept or assume any liability, responsibility or duty of care for any
consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2015 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see
www.pwc.com/structure for further details.
