BRICS agree on social security pacts for labour migration

By: | Published: September 28, 2016 8:22 PM

The BRICS nations today agreed to explore and pursue bilateral social security agreements, which will encourage migration of labour among the five emerging economies of the world.

India has such social security agreements for labours with 16 countries, including France, Germany, Switzerland, Canada and Australia. (Reuters)India has such social security agreements for labours with 16 countries, including France, Germany, Switzerland, Canada and Australia. (Reuters)

The BRICS nations today agreed to explore and pursue bilateral social security agreements, which will encourage migration of labour among the five emerging economies of the world.

“We have decided to pursue bilateral social security agreements among the BRICS members and this process will start,” Labour Minister Bandaru Dattatreya told reporters at the BRICS Labour and Employment Ministerial Meet here.

On the timeframe of these agreements, a senior government official said: “These agreements can take up to two years for finalisation as there would be talks between all the members regarding the proposals.”

At present, there are no bilateral social security pacts between BRICS nations (Brazil, Russia, India, China, and South Africa). Such agreements help employees regrading adjustment of their social security benefits such as pensions and medical insurance when they are working abroad.

At present, India has such social security agreements with 16 countries, including France, Germany, Switzerland, Canada and Australia.

Under such agreements, Indian employees working abroad have the choice to not remit contribution in the country they are working. They are also eligible to get the benefit of totalisation period for deciding the eligibility for pension, may get pension in the country they choose to live.

Besides the employers are saved from making double social security contributions for the same set of employees.

Retirement fund body EPFO has been authorised to issue the Certificate of Coverage to the employees posted to the countries which have inked such agreements with India.

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