India, Denmark sign social security pact
New Delhi: India and Denmark on Wednesday signed a
social security pact that will relieve their workers from
double taxation and provide for cooperation in areas of labour
market expansion and orderly migration.
Under the agreement, workers on short term contracts will
not be required to make any social security contribution in
the country of employment provided they continue to make
social security payments in the country of their origin.
The pact was signed by A Didar Singh, Secretary in the
Ministry of Overseas Indian Affairs and Denmark's Minister for
Employment Inger Stojberg.
Describing the pact as an "important agreement", Singh
said it will further strengthen the bilateral relations
between the two countries.
Stojberg also hoped that the pact will help both the
countries in increasing their two-way trade.
Highlighting the feature of the pact, Singh said the
agreement will enhance cooperation on social security between
the two countries as it will protect the workers from double
payment of social security contributions.
India already has signed an MoU on 'Labour Mobility
Partnership' with Denmark in September last year to ensure
smooth and safe migration of Indian workers there.
Singh said the migrant workers sent by Denmark-based
companies to their Indian subsidiaries, or those sent by
Indian companies to their subsidiaries in Denmark will be
exempted from social security contribution.