New Social Security Agreement between India and the Netherlands

India and the Netherlands at the end of 2009 signed a Social Security Agreement to facilitate the movement of professionals between the two countries. The agreement was signed by Indian Overseas Affairs Minister Vayalar Ravi and Dutch Minister of Social Affairs and Employment Piet Hein Donner.

“This agreement will strengthen the bilateral relations and it will enhance cooperation on social security between our countries,” said Ravi after signing the agreement.

One aspect of the agreement is that detached workers sent by Netherlands-based companies to their Indian subsidiaries, or those sent by Indian companies to their branches in the Netherlands can be exempt from social security contribution in the host country for a period of 60 months. “While working abroad, these employees will only be subject to the social security regulations of their home country.” This agreement provides that an employed or self-employed person, other than detached workers shall be subject only to the legislation of the host country. The agreement furthermore provides for portability of the benefits at the time of relocation.

“The agreement will come into effect after the fulfillment of the national requirements,” the statement added. There are about 21,000 Indians in the Netherlands and over 850 Dutch nationals working in India. India has signed similar agreements with Belgium, France, Germany, Switzerland and Luxembourg recently.

Our customers and partners can off course get additional advice from Compass to learn about the implications of this agreement