In August 2009, the Social Security Agreement between Belgium and Uruguay came into force. This agreement allows for the accumulation of employment periods in both countries to generate rights to retirement benefits and survivors' benefits and provides social coverage to workers who are temporarily employed in the other country. The agreement also makes provision for old-age pensions and pensions paid overseas to be exempt from any reductions or deductions and aims to facilitate administration procedures.
This agreement was signed in Montevideo on 22 November 2006, ratified on 18 June 2008 and enacted by the Belgian government on 12 February 2009.
The agreement's field of application extends to Belgian legislation governing:
- Retirement and survivors' pensions for salaried and self-employed persons;
- Disability benefits for salaried workers, workers employed in the merchant navy and self-employed persons;
- Social security for non-salaried workers;
- The social status of self-employed workers.
Similarly, the agreement applies to Uruguayan legislation on:
- Contributory old-age and retirement pensions based on both the pay-as-you-go system and individual account systems;
- Sickness and maternity benefits.
The agreement provides coverage for individuals who reside in or who undertake employment within the context of the legislation of either country, to their survivors and family members. It will also apply to any new categories of beneficiaries subsequently added to the aforementioned schemes, unless otherwise stated by the country who has decided to modify its legislation.
In accordance with the terms of the agreement, workers who are on secondment (of up to 24 months) will remain subject to the legislation of the country in which they are normally employed and will be treated as if they continue to be employed in that country.
The agreement allows for the totalisation of completed periods of employment by workers in both countries.
Concerning the amount of benefits paid, if the beneficiary is eligible for benefits without having to totalise the periods of employment, the amount of benefit to be paid will be calculated in accordance with the legislation of the country issuing the benefit. Where individuals are required to totalise the periods of employment completed in both countries, the respective institutions will calculate the amount to be paid in proportion to the periods worked in accordance with its legislation. Lastly, where the amount obtained under the first calculation is less than the amount obtained under the second calculation, the amount of benefit to be paid will be based on totalling the employment periods in both countries.
With regard to the administrative cooperation mechanisms, the agreement sets out reciprocal assistance between the two institutions that will largely be free of charge. In this way, income earned from either tax exemptions or tax reductions or other costs stipulated in each country for issuing certificates will be treated as if generated in the other country. Similarly, official documentation will not have to be legalized by diplomatic authorities. In addition, the agreement authorises the responsible institutions to communicate directly with each other.
With regard to the payment of benefits, both countries undertake to pay retirement benefits and survivors' benefits to the citizens of the other country who reside in a third country as if they were their own citizens.
Legislation date: 06.2008
Implementation date: 08.2009