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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Dattatreya said the BRICS Ministerial Declaration has also proposed "strong interventions and actions" in areas concerning employment generation, social security and formalisation of labour markets.
BRICS nations comprise 43 per cent of the world's population, 37 per cent of the world GDP and 17 per cent of the global trade, he noted.
"We have also acknowledged the need to develop a network of lead labour research and training institutions in BRICS member states for undertaking joint research and training activities, capacity building of various stakeholders and exchange of information in areas of expertise," he said.
The forum acknowledged employment generation's importance to the overall policy objective of sustainable development.
"A broad consensus was reached on encouraging social security agreements and networking of labour institutions of BRICS member states and these have been included in the BRICS Labour and Ministerial Declaration," he added.
"We will now place the Declaration and these conclusions and agreements for consideration by our leaders and I hope the same would find appropriate mention in the BRICS Leaders Declaration which would be adopted in Goa in October 2016," the Minister said.
The Head of States of the BRICS countries are scheduled to meet in Goa in October 15-16 this year.
