October 13, 2011 2:34 PM

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India, Germany sign Comprehensive Social Security pact

India and Germany have signed a comprehensive social security agreement. The agreement will relieve their workers from double taxation.

It will also provide for cooperation in areas of labour market expansion and orderly migration.

The pact was signed in Berlin by Overseas Indian Affairs Minister Vayalar Ravi and Germany's Federal Minister of Labour and Social Affairs Ursula von der Leyen.

External Affairs ministry spokesperson said in New Delhi, that under the agreement, Indian workers on short term contracts of up to five years will not be required to make any social security contribution in Germany provided they continue to make social security payments in India.

The relief will be available to Indian workers even if an Indian company sends its employees to Germany from a third country. Similar relaxation will be provided to German citizens working in India.

AIR correspondent reports, there are about 68,500 Indians in Germany most of whom are working as professionals and self-employed.

This agreement subsumes the earlier Indo-German agreement on Social Security signed in October 2008.

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