Agreements
Bilateral social security agreements are being negotiated with various countries to protect the interest of expatriate workers and the companies on a reciprocal basis. These agreements help workers by:
- Providing for exemption from social security contribution in case of short-term contracts
- Exportability of pension in case of relocation to the home country or any third country
- Totalisation of the contribution periods
Such agreements also prove beneficial for the companies, as exemption from social security contribution, in respect of their employees substantially reduces their costs.
The Ministry has signed Bilateral Social Security Agreements with Belgium, France, Germany, Switzerland, Luxembourg, Netherlands, Hungary, Denmark, The Czech Republic, Republic of korea and Norway.
Similar agreements have been finalized with Canada and the Federal Republic of Germany and are expected to be signed shortly. Negotiations are in progress with Bulgaria, Austria, Cyprus, Finland, Greece, Italy and Australia. Two rounds of exploratory talks
have been held with the USA.