Social security pact with Norway comes into force

A social security agreement between India and Norway to avoid double social security contributions has come into effect from Jan 1, an Employees Provident Fund Organisation (EPFO) order said here.

"In pursuance of the social security agreement (SSA) signed with Norway, Government of India has notified it...(it) has come into force with effect from January 1, 2015," the order said.

The agreement provides for detachment, totalisation and portability of contributions. Under the detachment clause, the employees of one country deputed by their employers to other country for short term assignments are exempted from social security contributions up to a period of 60 months.

This would enable Indian and Norwegian employees to avoid double social security contributions and raise the competitiveness of their products and services.

To avail this benefit, the Norwegian workers are required to produce a certificate of being covered by social security schemes under a statutory authority like EPFO in their country.

India currently has social security agreements with 12 countries - Belgium, Germany, Switzerland, Denmark, Luxembourg, France, South Korea, the Netherlands, North Korea, the Czech Republic, Finland and Hungary.