Cabinet approves signing of social security pact with Brazil

The Union Cabinet on Wednesday approved signing of a social security agreement with Brazil that will relieve workers from both the countries from double taxation and provide for orderly migration. As per provisions of the agreement, workers on short-term contracts will not be required to make any social security contribution in the country of employment provided they continue to make social security payments in their home country.

"The union cabinet chaired by Prime Minister Narendra Modi has given its approval for signing the agreement on social security between India and Brazil," a government statement said. India has signed social security agreements (SSAs) with a number of countries, including Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Hungary, Japan, Luxembourg, Netherlands, Norway, Portugal, Sweden and Switzerland.

Officials said migrant workers sent by Brazil-based companies to their Indian subsidiaries, or those sent by Indian companies to their subsidiaries in Brazil, will be exempted from social security contribution. At present, about 1,000 Brazilians are living in India, while about 4,700 Indians are living in Brazil.

All posted/detached workers and self-employed persons will benefit from the pact, officials said.