India and Denmark on Wednesday signed a social security pact that will relieve their workers from double taxation and provide for cooperation in areas of labour market expansion and orderly migration.

Under 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 the country of their origin.

The pact was signed by A Didar Singh, Secretary in the Ministry of Overseas Indian Affairs and Denmark’s Minister for Employment Inger Stojberg.

Describing the pact as an “important agreement”, Singh said it will further strengthen the bilateral relations between the two countries.

Stojberg also hoped that the pact will help both the countries in increasing their two-way trade.

Highlighting the feature of the pact, Singh said the agreement will enhance cooperation on social security between the two countries as it will protect the workers from double payment of social security contributions.

India already has signed a MoU on ‘Labour Mobility Partnership’ with Denmark in September last year to ensure smooth and safe migration of Indian workers there.

Singh said the migrant workers sent by Denmark-based companies to their Indian subsidiaries, or those sent by Indian companies to their subsidiaries in Denmark will be exempted from social security contribution.

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