India and Brazil initialled the text of the Social Security Agreement (SSA) in Brasilia on March 16.
As per the agreed text, detached workers of the two countries are exempted from making social security contributions in either country so long as they were making such contributions in their respective countries.
The text establishes the rights and obligations of nationals of both countries and provides for equal treatment of the nationals of both countries and unrestricted payment of pensions even in the case of residence in the other contracting state.
As on date, India has signed and operationalised Social Security Agreements (SSAs) with 18 countries - Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Hungary, Japan, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, and South Korea, Bureaucracy Today has learnt.
The SSA between India and Brazil once brought into force after completion of the ratification process in the respective counties will favourably impact the profitability and competitive position of Indian and Brazilian companies with foreign operations in either country by reducing their cost of doing business abroad. The SSA will also help promote more investment flows between the two countries.
The SSA between India and Brazil once in force by early 2018 will also be the first such agreement between the BRICS countries taking forward the spirit of the Goa Declaration and outcomes of the meetings of BRICS Labour and Employment Ministers.