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
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