Portugal has conveyed to India it has completed relevant constitutional and legal formalities pertaining to bilateral agreement on social security, which will come into force on May 8.
The Agreement on Social Security (SSA) between India and Portugal was signed on March 4, 2013 in New Delhi.
On February 7, 2017 Portugal, on completion of the relevant constitutional and legal formalities, conveyed to India it is ready to bring the SSA into force.
Bilateral social security agreements protect the interests of professionals, skilled workers abroad by helping them avoid making double social security contributions.
It also enables easy remittance of benefits (exportability) and aggregate the contribution periods (in two countries) to prevent loss of benefits (totalisation).
The SSA will favourably impact the profitability and competitive position of Indian and Portuguese companies with foreign operations in wither countries by reducing their cost of doing business abroad.
It will also help promote more investment flows between the two countries.
India has signed and operationalised "comprehensive" Social Security Agreements (SSAs) with 17 countries - Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Hungary, Japan, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, and South Korea.
India also has an SSA with Germany, which is in the process of getting operationalised.
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