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Social Security Agreement between India and Brazil

The Employees’ Provident Fund Organisation, vide internal circular no. IWU-1109/1/2020-IWU/Brazil/E-file (621352)/4763, dated 13th February, 2024, has notified all its field offices regarding the enforcement of the Social Security Agreement entered between the Republic of India and the Federative Republic of Brazil. The Social Security Agreement between India and the Federative Republic of Brazil was executed between the two countries on 7th November, 2023. Now, the Government of India has notified that the said agreement shall come into force effective from 1st January, 2024. The Employees who are deputed to Brazil and who are covered under the EPF Scheme in India need not contribute to the Social Security System in India, provided, they obtain a certificate of coverage issued by the EPFO India. The agreement provides for detachment, totalisation and portability. The concepts of detachment, totalisation and portability are explained below:

• Detachment: Indian employees working in countries with which India has Social Security Agreements are exempted from contributing to their Social Security System, provided, they are complying with the Indian Social Security System. This exemption is available for a specified period stipulated in the agreement.

• Totalisation: The period of service rendered in an SSA country is counted for determining eligibility for pension. The actual pensionary benefits, however, are payable only for the period of contributory service in India on a pro-rata basis.

• Portability: It applies only in the matter of pension benefits. Pension benefits are payable without reduction, directly to the beneficiaries choosing to reside in the home country, or in any other country.

 

Who is an International Worker?

An International Worker (IW) may be an Indian worker, or a foreign national, as defined under paragraph 2(ja) of the EPF Scheme, 1952:

  1. An Indian employee having worked or going to work in a foreign country with which India has entered into a Social Security Agreement and being eligible to avail the benefits under the Social Security programme of that country, by virtue of the eligibility gained or going to gain, under the said agreement;
  2. An employee other than an Indian employee, holding other than an Indian Passport, working for an establishment in India to which the EPF & MP Act, 1952 applies.

Please refer to the below circular for more details:

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