Govt okays proposal for social security pact with Quebec
30 Aug 2013 11:39 PM GMT
The government on Thursday cleared a proposal for a social security agreement with the Canadian province of Quebec that will benefit about 40,000 people of Indian origin living there.
The proposal was cleared by the Union Cabinet and India will soon be signing such agreement with Quebec, finance minister P Chidambaram told reporters here.
He said though India has a similar agreement with Canada, different provinces of that nation have the right to enter into such an agreement with another country separately and Quebec has exercised this right.
India has similar agreements with many countries such as Luxembourg, Netherlands, Switzerland, Germany and Korea, he said.
Social security agreements usually eliminate double payment on social security contribution, exempt detached workers from host country legislation and enable portability of pension and prevent loss of benefits.
Under such pacts, workers on short term contracts of up to five-six years are not be required to make any social security contribution in the country of employment provided they continue to make social security payments in the country of their origin.
The proposal was cleared by the Union Cabinet and India will soon be signing such agreement with Quebec, finance minister P Chidambaram told reporters here.
He said though India has a similar agreement with Canada, different provinces of that nation have the right to enter into such an agreement with another country separately and Quebec has exercised this right.
India has similar agreements with many countries such as Luxembourg, Netherlands, Switzerland, Germany and Korea, he said.
Social security agreements usually eliminate double payment on social security contribution, exempt detached workers from host country legislation and enable portability of pension and prevent loss of benefits.
Under such pacts, workers on short term contracts of up to five-six years are not be required to make any social security contribution in the country of employment provided they continue to make social security payments in the country of their origin.
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