Social security benefits for Indians in Canada, Oz
Indian professionals working in Canada, Sweden, Australia and Portugal will soon be exempted from paying social security contribution.
New Delhi: Indian professionals working in Canada, Sweden, Australia and Portugal will soon be exempted from paying social security contribution there if they make such payments back home.
The benefit will be available under social security pacts finalised with these countries by the Ministry of Overseas Indian Affairs. The agreement will also ensure orderly migration of workforce to and fro and provide for cooperation in areas of labour market expansion.
According to government data, nearly one million Indians are currently living in Canada while the combined total of Indians in Sweden, Australia and Portugal is around two lakh.
"The government has completed negotiations for signing of social security agreements with Canada, Sweden, Austria and Portugal," an official in the Ministry of Overseas Indian Affairs said.
The social security agreement would help India Inc as they would be able to save on cost for various projects in these countries.
As per provision of the pacts, Indian workers on short term contracts of up to five years will not be required to make any social security contribution in these countries provided they continue to make payments in India.
The officials said the government was also negotiating for similar pacts with Britain, Australia and Japan. The total Indian population in these three countries is around two million.
The pacts will help the expatriate workers as often they do not get any benefit from the social security contribution paid abroad on their return home on completion of term of contract because most countries do not allow transfer of social security benefits.