In general there is two different way of processing the split payroll for any international worker and both are based on the SSA (Social Security Agreement) signed between the countries.
The Government of India has entered into an agreement on Social Security with the Government of Belgium, Germany, Switzerland, Luxemborg, France, Denmark, Korea and Netherlands. This agreement aims at achieving equality on the principles of reciprocity and is intended to benefit the employees and employers of both India as well as the other country.
The salient features of the agreement are:
The employees of the home country deputed by their employers, on short-term assignment for a pre-determined period of up to 60 months, to the host country need not remit social security contribution in that country.
Export of pension due under the legislations of one country to the other country, where the member might choose to live, is possible.
Totalisation of the contribution periods earned while in service in both the countries for the purpose of deciding eligibility to benefits is possible under certain circumstances.
The employers are saved from making double social security contributions for the same set of employees, thereby enhancing the competitiveness of their products and services.
In whole if both the countries have under went SSA, Employer does not need to remit the social contributions for the employee in both the country.
Where there is no SSA, employer will have to remit all Social Security dues in the both the countries.
In both the cases Tax has to be deducted in both the countries where the employee is based.
Rgds..Kumar Anand
From Korea
14The Government of India has entered into an agreement on Social Security with the Government of Belgium, Germany, Switzerland, Luxemborg, France, Denmark, Korea and Netherlands. This agreement aims at achieving equality on the principles of reciprocity and is intended to benefit the employees and employers of both India as well as the other country.
The salient features of the agreement are:
The employees of the home country deputed by their employers, on short-term assignment for a pre-determined period of up to 60 months, to the host country need not remit social security contribution in that country.
Export of pension due under the legislations of one country to the other country, where the member might choose to live, is possible.
Totalisation of the contribution periods earned while in service in both the countries for the purpose of deciding eligibility to benefits is possible under certain circumstances.
The employers are saved from making double social security contributions for the same set of employees, thereby enhancing the competitiveness of their products and services.
In whole if both the countries have under went SSA, Employer does not need to remit the social contributions for the employee in both the country.
Where there is no SSA, employer will have to remit all Social Security dues in the both the countries.
In both the cases Tax has to be deducted in both the countries where the employee is based.
Rgds..Kumar Anand
From Korea
Dear Kumar ji,
Good piece of information.
I have a doubt on your last two paragraphs, i.e.
1. Where there is no SSA, employer will have to remit all Social Security dues in the both the countries.
2. In both the cases Tax has to be deducted in both the countries where the employee is based.
According to me, if there is no SSA, the employer has to remit the Social Security dues in the country where the person is employed.
Members of the Forum / experts are requested to share their views.
Thanks and regards.
Keshav Korgaonkar
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from
From India, Mumbai
Good piece of information.
I have a doubt on your last two paragraphs, i.e.
1. Where there is no SSA, employer will have to remit all Social Security dues in the both the countries.
2. In both the cases Tax has to be deducted in both the countries where the employee is based.
According to me, if there is no SSA, the employer has to remit the Social Security dues in the country where the person is employed.
Members of the Forum / experts are requested to share their views.
Thanks and regards.
Keshav Korgaonkar
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from
From India, Mumbai
Dear Keshav,
To make it clear, let me explain you with an example.
We are Korea based company and both India and Korea have been into SSA with effect from Nov 11.
Before Nov 11, for all our expats (Employee who are on rolls of parent company in Korea and has been deputed in India with the subsidiary) we were remitting PF in India and was contributing to National Pension Scheme in Korea as well.
Once the SSA has been signed we do not need to remitt the PF contribution and only contribution to National Pension Scheme in Korea is happening.
To stop PF remittance we have to submit COC (Certificate of Coverage) to RPFC.
Rgds..Kumar Anand
From Korea
To make it clear, let me explain you with an example.
We are Korea based company and both India and Korea have been into SSA with effect from Nov 11.
Before Nov 11, for all our expats (Employee who are on rolls of parent company in Korea and has been deputed in India with the subsidiary) we were remitting PF in India and was contributing to National Pension Scheme in Korea as well.
Once the SSA has been signed we do not need to remitt the PF contribution and only contribution to National Pension Scheme in Korea is happening.
To stop PF remittance we have to submit COC (Certificate of Coverage) to RPFC.
Rgds..Kumar Anand
From Korea
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