This new agreement which subsumes the earlier India-Germany Agreement on Social Security October 8, 2008 will benefit Indian nationals working in Germany to a greater extent.

As per the new Social Security Agreement signed between the two countries on October 12, 2011, for short term contract up to five years, no social security contribution would need to be paid under the German law by the detached workers provided they continue to make social security payment in India. Social security benefits will be available even when the Indian company sends its employees to Germany from a third country. 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 Germany.

The self-employed Indians in Germany 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 for social security benefits.

This is the 60th year of diplomatic relationship between India and Germany. There are about 68,500 Indians in Germany most of whom are working as professionals and self-employed. During the visit of German Chancellor to India in May 2011, both India and Germany reaffirmed that the bilateral trade should reach $ 20 billion by 2012. There is a huge potential for Indian workers for employment in Germany. As such the bilateral Social Security Agreement with Germany is a significant requirement from the futuristic point of view to take advantage of the emerging employment opportunities and to strengthen the trade and investment between the two countries.

India has signed similar agreements with Belgium, France, Switzerland, The Netherlands, Luxembourg, Hungary, Denmark, Czech Republic, South Korea and Norway.