Belgium and Argentina recently signed a social security agreement which has been submitted for ratification. This agreement will have major consequences for the social security status of employees and self-employed persons who are subject to the Belgian or Argentinean social security scheme and who are localised in, or seconded to Argentina or Belgium. The agreement is open to all nationalities.
The agreement concerned is a classic “totalisation agreement” establishing the following principles to avoid double payment of social security contributions:
“Ius loci laboris”
The “ius loci laboris” principle states that an employee will be subject to the social security scheme of the country in which he/she works (i.e. Belgium or Argentina).
Secondment
Once the agreement enters into force, employers with registered offices in Belgium or Argentina will be able to apply for a certificate of coverage (“COC”), a document provided by the relevant social security authority in their country. This certificate will allow employees seconded to Argentina to remain subject to the Belgian social security scheme and to be exempt from paying social security contributions in Argentina and vice versa. The maximum period of secondment amounts to 2 years with a possible extension of 3 years upon agreement by the social security authorities of both countries.
This form of secondment is also open to self-employed persons subject to the Belgian or Argentinean social security scheme who are on a temporary mission in Argentina or Belgium.
Transfer of social security benefits
As for pensions and invalidity benefits, allowances acquired in one country will be paid out in the other if the beneficiary no longer lives in the country where the allowances concerned have been acquired. For example, pension benefits acquired in Argentina will be paid out in Belgium in case the retired employee no longer lives in Argentina at retirement time.
Insurance periods
In order to determine the exact social security benefit entitlement, as regards pensions and invalidity, insurance periods fulfilled in one country will be aggregated with those fulfilled in the country where the benefit/allowance payments are claimed.
