New Delhi :- Government has signed Social Security Agreements (SSAs) with Belgium, France, Germany, Luxembourg, Switzerland, Netherlands, Denmark, South Korea, Hungary, Finland, Sweden, the Czech Republic, Norway, Canada, Japan, Austria, Portugal, Australia and Quebec (Province of Canada) for the protection of Indian professionals working in these countries from making double contribution of social security in the home country as well as in the host country on the same income.
The salient features of these Agreements are:
(i) Exemption from social security contribution for the posted (detached) workers provided the worker is covered under the Indian social security system and continues to pay his contribution to the Indian system during the period of contract.
(ii) Exportability of benefits in case of relocation to India or any other country after having made social security contribution.
(iii) Totalization of the periods of contribution pertaining to both countries for the purpose of assessing eligibility for benefit/pension under the legislation of each country.
(iv) It also makes Indian companies more competitive since exemption from social security contribution in respect of their employees substantially reduces costs. No instances of violation of any of the provisions of these Agreements have come to the notice of the Government during the last three years.
The Government is in negotiation with various other countries to sign such Agreements. Additional countries are also being identified with whom signing such an agreement would be in the interest of Indian workers/companies. These are international Agreements, and their successful conclusion depends on the mutual convenience of both the negotiating sides. It is not possible to indicate a definitive timeline by which they are likely to be signed. This information was given by Minister of state for Overseas India Affairs General V. K. Singh in Lok Sabha today.
