India, Austria ink Social Security Agreement

image India signed a Social Security pact with Austria. As per the pact, the Indian professionals working in Austria would be exempted from paying the social security contribution of the country, if such payments are already made in India.
This agreement would also enhance cooperation in labor market expansion in Austria which has more than 17000 Indian professionals.

What are the Salient features of the agreement?

What is social security contribution?

  • Salient features of the agreement: Indians working in Austria on short-term contracts of up to 5 years are exempted from paying social security contribution in Austria if they continue making the payments in India.
  • The workers sent by an Indian company from a third would also be eligible for the relief.   
  • The benefits of social security to Indian workers would also be exportable in case they relocate to India once his/her service term in Austria ends. The same benefits will be extended to self employed Indians on relocation to India.
  • India already have signed similar pacts with nations like Czech Republic, Belgium, Germany, France, The Netherlands, Switzerland, Hungary, Luxembourg, Denmark, South Korea, Finland, Canada, Norway and Japan.

What is social security contribution?

  • Social security contribution is similar to India’s Employees Provident Fund (EPF).  As per Indian Labour Law, it is mandatory for every employer and employee who falls under the umbrella of Employees Provident Fund Act 1952 to make contribution towards the provident fund. Likewise, Austria has a mandatory contribution fund known as Social Security. In the absence of this pact, the Indian workers in foreign nations paid social security tax in the countries of their stay although they contributed there part in India.

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Categories: International Current Affairs 2017

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