The Agreement between Japan and India on Social Security, in force since 1 October 2016, stops a worker paying pension contributions to both countries. A Japanese employee sent to India by a Japanese employer generally stays in the Japanese pension system for an initial five years, extendable by agreement, and is exempt from Indian provident fund if a Certificate of Coverage is in place. Periods in both countries can also be added up to qualify for benefits.
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Key facts
| Agreement | Agreement between Japan and the Republic of India on Social Security, signed 16 November 2012, in force since 1 October 2016 |
|---|---|
| Systems covered: Japan | National Pension and Employees' Pension Insurance, and certain mutual aid pensions |
| Systems covered: India | Employees' Pension Scheme (EPS) and Employees' Provident Fund (EPF) |
| Detached worker rule | An employee sent by an employer with a place of business in the home country stays under home legislation; initial period five years |
| Extension | Possible by agreement of both countries' institutions; commentary notes up to three further years in specified cases |
| Proof | Certificate of Coverage, presented to the EPFO and the Indian employer when required |
What the agreement does
A social security agreement has two jobs. First, a detached worker stays under the sending country's system and pays only there. Second, periods of coverage in both countries can be combined, so short stays do not lose pension rights. The Japan-India agreement does both, but only for pension systems and only for employees.
The detached worker rule
| Condition | What it means |
|---|---|
| Sent by an employer | The employee is sent by an employer that has a place of business in Japan to work in India for that employer or its group |
| Employment continues | The employment relationship with the sending employer continues during the assignment |
| Period | Initially five years |
| Extension | The institutions of both countries can agree to a longer period. Japanese commentary notes extensions in specified cases |
| Proof | Certificate of Coverage |
The structure of the assignment is what decides whether the rule applies. A secondment that keeps the employee on the Japanese parent's payroll and employment contract fits the rule. A local hire by the Indian subsidiary does not.
Getting the Certificate of Coverage
- Confirm the assignment fits the detached worker rule before the employee leaves.
- The Japanese employer applies for the Certificate of Coverage through the Japan Pension Service or the competent social insurance office, stating the assignment period.
- Give a copy of the certificate to the Indian subsidiary's payroll and keep the original.
- Present the certificate to the EPFO when required, for example on an inspection or a provident fund query.
- Apply for an extension through the same route before the initial period ends.
Combining periods for benefits
- Indian pension. The EPS old-age pension needs 10 years of EPS coverage. Non-overlapping Japanese coverage periods can be added to reach it. If the total is still under 10 years, a withdrawal benefit is paid instead.
- Japanese pension. Indian EPS periods can be added to meet Japanese minimum periods, except periods already paid out as a withdrawal benefit.
- EPF. EPF periods are not totalized. Japanese commentary notes the EPF balance can generally be withdrawn when the person retires or resigns in India, whatever the age.
Planning around the agreement
- Keep the employee on the Japanese employment contract and payroll, with the Indian cost recharged through an intercompany agreement.
- Apply for the certificate before departure, not after the first Indian payroll.
- Diary the end of the initial five years and apply for any extension in good time.
- Check that a recharge to India does not turn the arrangement into a permanent establishment issue. See treaty and PE risk.
What this means for a Japanese parent
- Ask HR to add the Certificate of Coverage to the standard assignment checklist for India. It saves a double provident fund cost.
- The agreement helps with pension contributions only. Budget separately for health cover and any Indian ESI or statutory benefits.
Mistakes to avoid
- Starting Indian payroll for a Japanese expat before the certificate is issued.
- Moving the employee onto the Indian subsidiary's employment contract and losing the detached worker position.
- Assuming the agreement covers health insurance.
- Forgetting to apply for an extension when the five years end.
How AU Corporate handles this
We structure expat employment in India, run payroll and provident fund compliance, and work with your Japanese advisers on the certificate.
Related services: HR and payroll
Official sources
Rules on this page can be verified at the primary sources: the Japan Pension Service, the Ministry of Health, Labour and Welfare text of the agreement and the Employees' Provident Fund Organisation.
Frequently asked questions
Is there a social security agreement between Japan and India?
Yes. The Agreement between Japan and India on Social Security has been in force since 1 October 2016.
What does the agreement cover?
Pension systems: in Japan the National Pension and Employees' Pension Insurance, and in India the EPS and EPF. It covers employees, not the self-employed.
How long can a Japanese employee stay in the Japanese system while in India?
The initial period is five years. Longer periods are possible if the institutions of both countries agree.
What is a Certificate of Coverage?
A certificate that proves the employee is covered by the home system under the agreement, so the host country does not require contributions.
Does a local hire by the Indian subsidiary qualify?
No. The detached worker rule is for employees sent by an employer with a place of business in the home country.
Does the agreement cover health insurance?
No. It covers pensions only.
Can periods in both countries be added together?
Yes, for pension benefits. The Indian EPS pension needs 10 years of coverage and Japanese periods can be added to reach it. EPF periods are not totalized.
Can an EPF balance be withdrawn?
Japanese commentary notes the balance can generally be withdrawn on retirement or resignation in India whatever the age. Confirm the current rule.
Related guides
EPF for International Workers in India: What Japanese Expats and Their Employers Must Know
How Indian provident fund applies to foreign nationals: international worker rules, no wage ceiling, the Japan agreement exclusion and the 2026 EPF Scheme.
Read the guide →Japanese Social Insurance for Employees Sent to India: Pension, Health and Employment Insurance
What happens to Japanese pension, health and employment insurance when an employee is sent to India: the Certificate of Coverage and who pays what.
Read the guide →Tax Residency for Japanese Expats in India: Residency Tests, Treaty Rules and Double Tax Relief
Which country taxes a Japanese expat in India: Indian residency tests, Japanese residency, treaty tie-breaker, the 183-day rule and foreign tax credit.
Read the guide →Employer of Record vs. Subsidiary in India: When to Use Each
Compare an Employer of Record with your own Indian subsidiary: speed, control, compliance, tax presence and when to convert. A guide for Japanese companies.
Read the guide →Sources
Last updated 20 October 2026. General information only, not legal or tax advice. Indian rules change often; confirm current requirements before acting.