Taking forward the spirit of the Goa Declaration at the eighth BRICS Summit , outcomes of the meetings of BRICS Labour and Employment Ministers held on June 9 last year in Geneva and on September 27-28, 2016 in New Delhi, India and Brazil today initiated the text of the Social Security Agreement in Brasilia.
As per the agreed text, detached workers of the two countries are exempted from making social security contributions in either country so long as they were making such contributions in their respective countries.
The text establishes the rights and obligations of nationals of both countries and provides for equal treatment of the nationals of both countries and unrestricted payment of pensions even in the case of residence in the other contracting state (benefits export principle).
The requirements to be entitled to a pension can be met by aggregating the periods of insurance completed in India and Brazil, whereby each country pays only the pension for the insurance periods covered by its laws.
As on date, India has signed and operationalised Social Security Agreements (SSAs) with 18 countries - Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Hungary, Japan, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, and South Korea.
The SSA between India and Brazil once brought into force after completion of the ratification process in the respective counties will favourably impact the profitability and competitive position of Indian and Brazilian companies with foreign operations in either country by reducing their cost of doing business abroad. The SSA will also help promote more investment flows between the two countries.
The Indian delegation was led by K. Nagaraj Naidu, Joint Secretary (Economic Diplomacy) of the Ministry of External Affairs, Government of India and the Brazilian delegation was led by Mr. Benedito A. Brunca, Secretary (Social Security Policies), Ministry of Finance, Government of Brazil.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)