India may soon have social security agreement with UK under free trade pact
social security pact
with the UK as an in-built component of the free trade agreement (FTA) which has been finalised between the two countries, a source said on Wednesday.
The source said that from now onwards, the social security agreement (SSA) will be an in-built component of all free trade agreements to be negotiated in future.
"UK is believed to have agreed on the social security component under the FTA negotiations, which would be ratified in the near future," the source said.
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The SSA, a reciprocal arrangement between two or more countries, ensures that an employee while on a foreign assignment does not have to contribute to the
social security coverage fund
in that country but get the full benefit of employment period for pension calculation, while the employers are saved from making double social security contributions on behalf of their workers.
The Indian employees posted abroad or on foreign assignment are required to obtain a certificate of coverage (CoC) from retirement fund body EPFO, which helps them avoid paying social security contribution in countries where they are posted.
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The
Employees Provident Fund Organisation
(EPFO) has been authorised to issue the Certificate of Coverage to employees posted in nations that have signed an agreement with India.
Union Labour Minister
Mansukh Mandaviya
told reporters here that he has requested the commerce ministry to include the SSA in all FTA negotiations in future.
He said, "We are doing so to promote social security for all."
At present, India has SSAs with 22 countries including Canada, Japan, Australia, Germany, Sweden and Brazil.
The citizen of all 22 nations with which India has inked SSAs get the same benefit if they are posted in India.
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