Totalization Agreement with Japan

Employees sent from Japan to India as well as those sent from India to Japan are currently obliged to affiliate to the social security systems of both countries thus causing duplicable payments of social security contribution which impose a huge economic burden on both individuals and corporations. It is expected that the conclusion of an agreement between Japan and India on social security will solve these problems through reducing the burden imposed on the employees and corporations, and further promote human and economic exchanges between the two countries.

Japan and India signed the Comprehensive Economic Partnership Agreement (CEPA) on 16th February 2011 in Tokyo. After the completion of the respective necessary legal procedures, the Agreement entered into force on 1st August 2011.

Under CEPA, Japan and India also agreed to enter into negotiations on a Social Security Agreement in order to complete the consultations and negotiations within 36 months after the commencement of the consultations, which took place in January 2011. The first round of negotiations was held last week between 25 -29 July in Tokyo which contributed significantly towards the conclusion of the negotiation.

The first meeting of the Joint Committee established under the Agreement was held on 1st August 2011 in Delhi. At this meeting, co-chaired by Ambassador Akitaka Saiki (Japanese side) and Dr. Rahul Khullar, Commerce Secretary (Indian side), the Joint Committee made the decisions necessary for the implementation of the Agreement, such as the Operational Procedures. It is expected that this Agreement will promote the liberalization and facilitation of trade as well as investment between the two countries and will further strengthen their economic ties in wide-ranging fields.

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