India and Austria on 5 February 2013 inked a social security pact at Vienna, under which the Indian professionals working in Austria would be exempted from paying the social security contribution of the country, if such payments are already made in India. Overseas Indian Affairs Minister Vayalar Ravi and Austrian Minister for Labour and Social Security, Rudoulf Hundstorfer signed the pact.
The pact of social security between the two countries would also boost cooperation of the labour market expansion in Austria, the country that is a home for more than 17000 Indian professionals.
Provisions of the Agreement:
• Indians working in the country on short-term contracts of up to five years are exempted from making social security contribution in Austria if they continue making the payments in India.
• If any Indian worker is sent to Austria by an Indian company from a third country then also he can avail the relief.
• Export of the benefits of social security would be offered to the Indian worker, who relocates to India once his/her service term in Austria ends. The self employed Indians can also carry on the same benefits on relocation to India
India already have inked similar types of agreements with countries like Czech Republic, Belgium, Germany, France, The Netherlands, Switzerland, Hungary, Luxembourg, Denmark, South Korea, Finland, Canada, Norway and Japan.
As per the Indian Labour Law, every employer and employee who falls under the umbrella of Employees Provident Fund Act 1952 needs to make contribution towards provident fund. Similarly the mandatory contribution fund in Austria is known as Social Security. Before signing of these agreements, the Indian professionals posted in foreign countries paid social security tax in the countries of their stay although they contributed there part in India.