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India Inks Social Security Agreement Pact with Australia

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India has signed a pact with Australia under which the employees deputed to Australia from India and viceversa need not make double social security contribution.

Social security agreement

This agreement provides the exception to the employees who have been deputed on a short term basis say less than 60 months from paying social security contribution to both the countries.India & Australia

Countries which signed the pact

  • Australia has become the 14th country with which India has a social security agreement in force.
  • The others in the list include Korea, Finland, Sweden, Czech Republic, Hungry, Germany, France, Belgium, Netherlands, Luxembourg, Denmark, Norway and Switzerland

Benefits derived from the pact

  • It is implemented by Employee Provident Fund Organisation and it will come into effect from January,2016
  • It provides exception to employees from both nations deputed on a short term project or pre determined period less than 60 months in paying social security contribution to both nations
  • It improves the ease of doing business
  • It includes detachment, portability and totalisation
  • EPFO has been provided the authority to issue certificate of coverage to employees of Indian companies deputed in Australia
  • This pact also holds good for those previously deputed in Australia

Points to note

  • EPFO Chairman– Shri. Bandaru Dattatreya
  • Australia Capital-Canberra
  • Australian President-Malcolm Turnbull