These pacts help to avoid double contribution to social security funds by Indian professionals working for a limited period in the member states of the European Union.
He also said that the EU has included SSA in a free trade agreement for the first time.
SSAs are the responsibility of the Member States and do not fall under the European Commission.
“That’s why none of the EU FTAs have any commitment under SSA. This is the first FTA where we have introduced social security because that is an important need for India and we have tied it to some of our future MFN (Most Favored Nation) commitments in services,” Agrawal told reporters here.
He said that in the first five years, this commitment will be expanded along with an incentive for member states to move towards SSA.
India and the EU announced the conclusion of negotiations on a free trade agreement on Tuesday. It will probably be implemented this year. The secretary said that these agreements must naturally be made bilaterally.
“Today we already have 14 of the 27 member states and we hope to have the remaining 13 in the next five years,” he said.
India has provided a framework for constructive engagement in social security agreements over a five-year horizon.
Currently, Indian professionals working for a limited period in countries with which India does not have these pacts contribute to their social security funds but cannot get their benefits as they return after the projects are completed.
It was a demand by Indian businesses operating in these countries to reduce the additional costs associated with bringing in qualified Indian professionals on a short-term basis.
India has social security agreements with countries like Belgium, Germany, Switzerland, France, Denmark, South Korea and the Netherlands. Hence, Indians who go abroad for work do not have to contribute to the social security systems of these countries.
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