The Social Security Agreement between India and Brazil: What You Need to Know
India and Brazil, two of the world`s largest emerging economies, have recently signed a Social Security Agreement (SSA) aimed at benefiting the growing number of Indian expatriates in Brazil and vice versa. The agreement was signed on November 15, 2019, in Brasilia, the capital of Brazil, and is expected to have a positive impact on the mobility of personnel, trade, and investment between the two countries.
The SSA between India and Brazil is a significant development as it seeks to provide social security coverage to workers posted in either country. With the increasing trend of global mobility and the movement of Indian professionals overseas, the agreement comes as a welcome relief for those employed in Brazil. The agreement seeks to eliminate the double contribution of social security and regulate the transfer of social security benefits between the two countries.
According to the agreement, employees of Indian establishments posted to Brazil, and vice versa, will be exempt from contributing to social security in the host country. This means that Indian expatriate employees working in Brazil will not be required to make social security contributions there, as long as they continue to make contributions in India. Similarly, Brazilian employees working in India will be exempt from making social security contributions there, as long as they continue to contribute in Brazil.
The SSA also provides for the transfer of social security benefits between the two countries. If an Indian worker who has contributed to the Indian social security system moves to Brazil for a job, they can receive social security benefits in Brazil based on the contributions made in India. Similarly, if a Brazilian worker who has contributed to the Brazilian social security system moves to India for a job, they can receive social security benefits in India based on the contributions made in Brazil.
The agreement has implications for companies doing business in either country. Employers in India sending employees to Brazil will benefit from reduced costs, as their employees will not be required to make contributions to the Brazilian social security system. This will also make them more competitive in the Brazilian market. Similarly, Brazilian companies sending employees to India will benefit from lower costs, as they will not be required to make contributions to the Indian social security system.
In summary, the Social Security Agreement between India and Brazil is a welcome development for Indian expatriate employees in Brazil and vice versa. The agreement provides for the elimination of double contributions to social security and the transfer of benefits between the two countries. This is a significant step towards promoting mobility of personnel, trade, and investment between India and Brazil. Employers in both countries will also benefit from reduced costs, making them more competitive in each other`s markets.