India signs first Social Security agreement with Belgium

New Delhi, Nov 3 (UNI) India today signed its first bilateral agreement on social security with Belgium which will entail many benefits to Indians and Belgians working in each other's countries.

The agreement was signed by Overseas Indian Affairs (OIA) Minister Vayalar Ravi and visiting Belgian Foreign Minister Karel De Gucht in the presence of Prime Minister Manmohan Singh and Belgian Prime Minister Guy Verhofstadt here today.

"This is the first bilateral agreement on social security that India has signed and will serve as a model for similar agreements with other countries in the European Union," OIA Ministry sources said here today, adding that the ministry is already negotiating similar agreements with countries like The Netherlands and France.

The significance of the agreement lies in the fact that the investment by Indian companies in Belgium and the investment by Belgium companies in India has been growing rapidly in recent years.

Such agreements would also make Indian companies more competitive since exemption from social security contribution in respect of their employees substantially reduces costs.

According to the Social Security Agreement signed with Belgium, those working on a short-term contract of up to sixty months are exempted from social security contributions in the host country provided they continue to make social security payments in their home countries.

Those who live and work for periods longer than sixty months and make social security contributions under the host country laws will be entitled to the export of the social security benefits should they relocate to the home country on completion of their contract or on retirement.

These benefits will also be available to employees sent by a company to the host country from a third country, the agreement says.

Self-employed Indians in Belgium contributing to the Belgian social security system will be entitled to the export of social security benefits should they choose to relocate to India.

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