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Social Security Agreement with Australia comes into force

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Press Trust of India New Delhi
Last Updated : Mar 17 2016 | 3:48 PM IST
Employees posted by Indian establishments in Australia for a predetermined duration of up to 60 months are not required to contribute towards social security schemes in that country.
Similarly, Australian employees posted in India would enjoy the same benefit after producing a certificate of coverage certifying that they are contributing towards social security schemes such as PF and pension in their home country.
"In pursuance of the social security agreement (SSA) signed with Australia, Government of India has notified it... has come into force with effect from January 1, 2016," the Employees Provident Fund Organisation's office order said.
As per the order, the SSA provides for detachment, totalisation and portability. 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.
The clause would enable Indian as well as Australian employees to avoid double social security contribution and enhance competitiveness of their products and services.
As per the government notification, EPFO has been identified as the agency to implement this SSA in India. It has also been authorised to issue certificate of coverage to employees of Indian establishment posted to Australia.
For availing this benefit, the Australian workers are required to produce certificate of coverage, showing that they are covered under social security schemes under a statutory authority like EPFO in their country.
At present, social security agreements are operational with 15 countries - Belgium, Germany, Switzerland, Denmark, Luxembourg, France, South Korea, the Netherlands, Sweden, Czech Republic, Austria, Finland, Norway, Canada and Hungary.

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First Published: Mar 17 2016 | 3:48 PM IST

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