The Bilateral Social Security Agreement (SSA) between Australia and India comes into force on 1 January 2016.1 Under the SSA, signed by the two countries in November 2014, double coverage of pension contributions for posted workers between Australia and India can be avoided. This GMS-Flash Alert reports on the bilateral social security agreement between Australia and India, which came into force on January 1, 2016. All of these agreements are based on the concept of shared responsibility. Responsibility-sharing agreements are reciprocal. Under each agreement, partner countries make concessions to their social security qualification rules so that those covered by the agreement have access to payments that they may not be eligible for. The responsibility for social security is thus distributed among the countries in which a person has lived during his or her working years and where the person is able to obtain potential rights. In general, it is possible to access a pension from one country in the second country, although the paying country retains some discretion with regard to the exchange and delivery mechanisms used. Bill was sent by his Australian employer to work in India for two years. Bill will continue to be covered by super warranty Australian legislation as well as Indian laws during work in India – so double super-coverage occurs. As a double super-coverage occurs, the agreement enters into force and frees Bill and his employer from the obligation to contribute under Indian law. Bill`s employer will continue to pay super-guarantee premiums, as is required in Australia.
All applicants for an Old Age Pension in Australia must meet the minimum age and residence criteria set out in Australian social security legislation. Australian pensions are also tested as a means – that is, there is an income test and an asset test, and depending on the result of the lower pension rate, it is used for evaluation purposes. The Department of Human Services website contains information on current limits on revenues and resources. The agreement does not apply to independent Australian residents working in India. They are not subject to super warranty law in Australia, so double super coverage does not occur. The agreement does not affect the treatment of diplomats and consular officials under the Vienna Convention on Diplomatic and Consular Relations. For future australia-India secondment agreements, companies should review their existing allocation policies and processes to avoid double pension contributions in Australia and India. Permission to renew a coverage certificate is set on a case-by-case basis. We can only grant an extension with the mutual agreement of the relevant agency in India and in certain circumstances. Under certain conditions, a CoC, normally valid for up to five years, can be purchased by workers on behalf of both countries.
Where coverage is required for more than five years, an application for coC renewal may be requested in writing and must be approved by the relevant authorities. Written application should include the reasons why detached employment exceeds the five-year period. The implementation of the SSA between Australia and India is a welcome measure that allows organizations to eliminate double costs, possibly through a double pension contribution for workers on international contracts, who are subject to mandatory pension schemes in Australia and India. In addition, the SSA`s enforcement between Australia and India provides international protection for assignees, so that they do not lose their right to social benefits in their home countries when they go to work in the other country. A full pension, subject to income and wealth controls, must be paid to a 45-year-old Australian Working Life Residence (AWLR). AWLR is the period of Australian residence between the age of 16 and age.