Social Security Agreements to help Indian workforce abroad

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Indian government has signed Social Security Agreements (SSAs) with number of countries to protect its migrant workforce from paying social security tax in both the home and adopted nations.

To ease their tax burden, we have inked SSA pact with these following countries so far...

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).

Its definitely a relief for Indian professionals working in these countries.

Salient Features of Agreements:

  • 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.
  • Exportability of benefits in case of relocation to India or any other country after having made social security contribution.
  • 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.
  • It also makes Indian companies more competitive since exemption from social security contribution in respect of their employees substantially reduces costs.

Moreover

  • 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.
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