BRICS Employment Working Group (EWG) Meeting First BRICS Em | UPSC PIB NEWS
BRICS Employment Working Group (EWG) Meeting
First BRICS Employment Working Group (EWG) Meeting amongst BRICS Countries.
The first BRICS Employment Working Group (EWG) Meeting was held in the virtual format in New Delhi.
India has assumed BRICS presidency this year.
Prime agenda for the discussions:
◆ Promoting Social Security Agreements amongst BRICS Nations
◆ Formalization of labour markets
◆ Participation of women in labour force
◆ Gig and platform workers – Role in labour market
◆ Apart from the member nations’ representatives, representatives from the International Labour Organization (ILO) and International Social Security Agency (ISSA) also participated.
◆ On the issue of Social Security Agreement (SSA), the Member Nations resolved to enter into dialogue and discussion with each other and take it forward towards signing of the agreements.
What are Social Security Agreements (SSA)?
◆ SSA is a bilateral agreement between India and a foreign country designed to protect the interests of cross border workers.
◆ The agreement provides for avoidance of ‘double coverage’ and ensures equality of treatment to workers of both countries from a social security perspective.
◆ Generally benefits such as detachment, exportability of pension, totalisation of benefits and withdrawal of social security benefits are available under these SSAs.
◆ Under Detachment or elimination of dual contribution, employees moving on employment to any SSA country are exempt from making social security contributions in the host country for a specified period (specific to each SSA), provided they continue to make social security contributions in their home countries.
◆ Under the Exportability of Pension clause, the employees may choose to receive benefits of social security in their home country or any other country where they are currently residing (subject to the respective SSA) without any reduction of those benefits, i.e. benefits can be exported.
◆ Under the Totalization of Benefits clause, the period of service rendered by an employee in the host country is to be counted for checking the “eligibility” of social security payment in the home country and vice-versa.
◆ It may be noted that withdrawal of PF and pension benefits is allowed only once the employee attains the age of 58 years (for non-SSA countries) or depending upon the conditions stipulated in the respective SSA (if any).
◆ To protect the interest of International Workers, India has signed bilateral Social Security Agreements with 19 countries, out of which 16 are operational.
Need for SSAs:
◆ The globalisation of the economy and development of international trade and business has considerably increased the international movement of individuals across geographies.
◆ While cross-border issues arise in the areas of tax, immigration and social security, of late, social security issues too have been gaining importance as they relate to the retirement benefits of the individual venturing beyond borders for employment.
◆ Till 2008, foreign nationals exercising employment in India were not covered under the Provident Fund (PF) regulations, since PF contributions were not mandatory where the employees’ pay exceeded the wage ceiling.
◆ On the contrary, Indian nationals working abroad were required to contribute to the social security scheme of the respective country.
◆ However, these contributions were generally lost due to limited tenure overseas or in failing to fulfill the minimum qualifying period of contribution or residence.
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