India and Denmark on Wednesday signed a bilateral social security agreement to protect their workers in either country against double payment of social security contributions, as also loss of such contributions and benefits.
The pact was signed here by Overseas Indian Affairs Secretary A Didar Singh and Danish Minister for Employment Inger Stojberg.
"The workers sent by Denmark-based companies to their Indian subsidiaries, or those sent by Indian companies to their subsidiaries in Denmark will be exempt from social security contributions under the host country's legislation," Singh said.
There are about 13,000 Indians in Denmark most of whom are working as professionals and self-employed persons. While working abroad, these employees will only be subject to the social security regulations of their home country.
The agreement also provides for portability of the benefits at the time of relocation to home country or any third country.
"This agreement will also help enhance trade and investment between the two nations on account of reduction of corporate expenses on social security and would ensure social protection of migrant professionals," Singh said.
The two countries will set up a joint working group to operationalise the agreement.
India has already signed similar agreements with Belgium, France, Germany, Switzerland, Luxembourg and the Netherlands.
"Presently, we are in a move to sign similar agreement with Canada, South Korea, Czech Republic, Sweden, Australia and the United States," the secretary said.