India has signed a social security agreement with Australia in which the employees of India deputed to Australia and vice versa will not have to make double social security contribution. The agreement marking another big step to enhance ease of doing business was notified by the Employees' Provident Fund Organisation (EPFO) in January and will be in effect from January 1, 2016.
EPFO in its order has stated that the agreement provides for detachment, totalisation and portability. Further the order specified that the employees of one country deputed by their employers to the other country on short-term assignment for a pre-determined period of up to 60 months need not remit social security contribution in that country. Henceforth the employers are saved from making double social security contributions for the same set of employees thereby enhancing competitiveness of their products and services. The employers who have already deputed or intend to depute their employees to Australia can avail themselves of this facility.
EPFO has been identified as the agency in order to implement the provisions of the agreement in India and has been authorized to issue 'certificate of coverage' to the employees of Indian establishments posted to Australia.
Following the agreement Australia has become the 14th country with which India has a social security agreement in force. The others in the list include Korea, Finland, Sweden, Czech Republic, Hungry, Germany, France, Belgium, Netherlands, Luxembourg, Denmark, Norway and Switzerland.