Social Security Agreement with Portugal to help many expatriates working in Indian companies: Report
MUMBAI: The Social Security Agreement (SSA) that India signed with Portugal and is set to come into force by May 8 this year, is set to doll out some benefits for expatriates working in the country, a Deloitte report said.
Foreign nationals on assignment to India can now be exempted from contributing to India PF, provided they continue the contributions to Portugese social security schemes and have a CoC from the authorities there. Additionally, foreign nationals from Portugal who have contributed to India PF will be eligible for withdrawal of the accumulated balances in their provident fund accounts on repatriation from India, the Deloitte report said.
"Notification of the SSA with Portugal will enable Indian employers having outbound employees to Portugal to apply for Certificates of Coverage (CoC) provided India PF is continued. This in turn could assist in optimizing social security costs," according to the report.
India also signed similar agreement with Germany. This too will benefit many expatriates, the report said. "The notification of the comprehensive agreement with Germany will widen the benefits to mobile employees to/from Germany. These individuals would be able to totalise the contribution periods in both contracting states to determine pension entitlement besides being able to export the benefits. Employers with mobile population to/from Portugal and Germany would be well advised to review their deputation arrangement in order to leverage on the above developments," the report added.
Foreign nationals on assignment to India can now be exempted from contributing to India PF, provided they continue the contributions to Portugese social security schemes and have a CoC from the authorities there. Additionally, foreign nationals from Portugal who have contributed to India PF will be eligible for withdrawal of the accumulated balances in their provident fund accounts on repatriation from India, the Deloitte report said.
"Notification of the SSA with Portugal will enable Indian employers having outbound employees to Portugal to apply for Certificates of Coverage (CoC) provided India PF is continued. This in turn could assist in optimizing social security costs," according to the report.
India also signed similar agreement with Germany. This too will benefit many expatriates, the report said. "The notification of the comprehensive agreement with Germany will widen the benefits to mobile employees to/from Germany. These individuals would be able to totalise the contribution periods in both contracting states to determine pension entitlement besides being able to export the benefits. Employers with mobile population to/from Portugal and Germany would be well advised to review their deputation arrangement in order to leverage on the above developments," the report added.
