India and Sweden Signed Social Security Agreement in New Delhi

India and Sweden signed a social security agreement in New Delhi on 26 November 2012. This agreement will help both the countries in more investment and work opportunities for nationals of India and Sweden. It will also encourage more and more Indians to go to Sweden for employment opportunities and vice versa.  Approximately, 156 Swedish companies are operating in India and expressed the hope that this agreement will encourage Swedish people to come in large numbers to India. In fact, India is the first Asian country with which Sweden has signed this type of agreement.

The Social Security Agreement will enhance cooperation on social security between the two countries. The Agreement will provide following benefits to Indian nationals working in Sweden:

a) For short term contract up to two years, no social contribution would need to be paid under the Swedish law by the detached workers provided they continue to make social security payment in India.

b) The above benefits shall be available even when the Indian company sends its employees to Sweden from a third country.

c) Indian workers shall be entitled to the export of the social security benefit if they relocate to India after the completion of their service in Sweden.

d) The self-employed Indians in Sweden would also be entitled to export of social security benefit of their relocation to India.

e) The period of contribution in one contracting state will be added to the period of contribution in the second contracting state for determining the eligibility of social security benefits.

There are about 18000 Overseas Indians in Sweden, most of whom are working as professional and self-employed. However, there is a huge potential for Indian workers to take employment in Sweden owing to the huge labour supply gap in the market. As such, a bilateral Social Security Agreement with Sweden is a significant requirement from the futuristic point of view to take advantage of the emerging employment opportunities and to strengthen the trade and investment between the two countries. India has singed similar agreements with Belgium, Germany, France, Switzerland, Netherlands, Luxembourg, Hungary, Denmark, Czech Republic, the Republic of Korea, Norway, Finland, Canada and Japan.