India, Austria ink social security pact

Indian professionals working in Austria will soon be exempted from paying social security contribution there, if they make such payments inIndia.

As per the pact, Indian workers will be entitled to “export” of their social security benefits if they relocate to India after completion of their service inAustria.

Self- employed Indians will also be entitled to export of the benefits on their relocation to India.

It will also provide cooperation in the area of labour market expansion wherein over 17,000 Indian professionals are working at present.

The agreement was signed by Overseas Indian Affairs Minister Vayalar Ravi and Austria’s Minister for Labour and Social Security Rudolf Hundstorfer in Vienna on Monday.

Under the agreement, Indian workers on short-term contracts of up to five years will not be required to make any social security contribution in Austria, provided they continue to make social security payments in India.

The relief will be available to Indians even if an Indian company sends its employees to Austria from a third country.

Officials in Vienna said similar relaxation will be provided to Austrian citizens working in India.

According to Indian labour laws, all employees and employers falling under the purview of the Employees Provident Fund Act, 1952, are required to make mandatory contribution towards provident fund.

"There is a huge potential for Indian workers to take employment in Austria as there is a huge labour supply gap in the country,” officials in Vienna said on Monday.

India has already signed similar agreements with Belgium,Germany, France, Switzerland, The Netherlands, Luxembourg,Hungary, Denmark, Czech Republic, South Korea, Norway,Finland, Canada and Japan.