The social security scheme in India –
popularly known as Employee
Provident Fund Scheme (EPF) ‐ recently
underwent certain drastic changes. As
per recent amendments, international
workers (i.e. both inbound and
outbound assignees) employed by an
establishment liable / covered under
Indian PF regulations are compulsorily
required to contribute to the EPF
scheme in India. This amendment
resulted in additional hardships for the
international workers in as much as the
contributions were required to be
made in both host and home country
in many of the cases.
In order to avoid nondiscrimination
and treat the international workers at
par, Social Security Agreements (SSA)
were signed by India with Belgium,
France and Germany. However, the
date of entry into force was not
notified. In its first ever Social Security
Agreement, the Government of India
has notified its SSA with Belgium and
the same would be effective from 1st
September 2009. The concept of SSA is
similar to that of Double Tax
Avoidance Agreements which India
has signed with various countries for
avoidance of double taxation in home
and host country.
With the SSA with Belgium in place,
the situations relating to either no
coverage under social security scheme
or double coverage under social
security in host and home countries
would be avoided. Similarly, it would
be possible to export the benefits
from one country to other country,
depending upon the ultimate place of
residence of the employee. Further,
the period of services in both the
countries – host and home country
would be considered to be counted
for determining the eligibility of
benefits under the SSA.
In accordance with SSA between India
and Belgium , broadly, the employee
would be required to make
contributions to Indian and Belgium
Social Security Scheme on the basis of
following parameters:
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