New Delhi– The Union Cabinet on Thursday approved amendment to a bilateral Social Security Agreement (SSA) with Netherlands by incorporating the “country of residence” principle in the said agreement.

India has signed and operationalised SSAs with 18 countries – Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Hungary, Japan, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland and South Korea.

“The amended SSA between India and the Netherlands, when operational from the third month from the date of notifying the said amendment to the Netherlands by India, will strengthen bilateral ties and continue to favourably impact profitability and competitive position of Indian and Dutch companies with foreign operations in either country by reducing their cost of doing business abroad,” an official statement issued here said.

The SSA, which has been in successful operation since June 2010 and has benefitted Indian expatriates in Netherlands, will also help promote more investment flows between the two countries, it added.

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. (IANS)