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India signs Social Security Agreement with Luxembourg


New Delhi: India Wednesday entered into a Social Security Agreement with Luxembourg to provide benefits to Indian nationals working in the European country.

The agreement, signed by Minister for Overseas Indian Affairs Vayalar Ravi, who is on a tour to Luxembourg, and Mars di Bartolomeo, Luxembourg’s minister for social security, comes after negotiations held here last year.

“For posted workers, for a detachment period of 60 months no social security contribution need to be paid under the Luxembourg law by the detached workers provided they continue to pay social security payment in India,” according to the agreement.

If the detachment period continues beyond 60 months the competent authorities of the two countries or the competent agencies designated may agree to extend the period of posting, an official release said here.

“The provision of detachment is also applicable where a person who has been sent by his employer from the territory of one contracting state to the territory of a third country is subsequently sent by that employer from the territory of the third country to the territory of the other contracting state,” says the agreement.

The Social Security Agreement includes the features of full portability of social security benefits.

It also provides for totalisation of the periods of contribution for pension/benefits.