The Union Cabinet on 22 June 2017 approved amendment to a bilateral Social Security Agreement (SSA) with Netherlands by incorporating the “country of residence”
The SSA has been in successful operation since June 2010 and has benefitted Indian expatriates who have been working in the Netherlands.
1. Beginning 1st January 2013, the Netherlands introduced new rules on export of social security benefits to countries outside the European Union.
2. Under the new Social Security (Country of Residence) Act, the amount of benefit or allowance paid to a qualified beneficiary (read as Dutch national) is adjusted to the cost of living of the country where the beneficiary is currently residing.
3. As per the new Dutch legislation, social security benefits when exported or remitted would be indexed to the cost of living of the host country (as reflected in the World Bank figures), where the Dutch citizen resides.
4. The new Dutch legislation, in ordinary circumstances, has no implications for the Indian worker working in the Netherlands because it is applicable only to Dutch nationals residing outside the EU except for a very few exceptional cases. The Indian posted workers would largely continue to get benefits as per the existing India-Netherlands Social Security Agreement.