Under these agreements, Australia equates social security periods/stays in these countries with periods of Australian residence in order to meet minimum qualification periods for Australian pensions. In other countries, periods of Australian working life are generally counted as social security periods to meet their minimum payment periods. Typically, each country pays a partial pension to a person who has lived in both countries. A number of factors determine the nature of social security contributions that must be paid independently of employers and workers, as well as the monetary consequences. (Figure 1 shows some examples of different income level rates in the sample). This last point concerns multinational organisations which, because of the unique consequences of an international commitment, claim a financial profit or loss of the expatriate – that is, minimise any financial gain or loss of the expatriate – and therefore have an additional financial burden when they fulfil the commitment of the host country as part of its foreign policy. In addition, the tax legislation of the host country may result in such a payment from the employer as taxable compensation to the assignee – which further increases the overall burden of the company. Australia currently has 31 bilateral international social security agreements. The following lists reflect existing totalization agreements for other selected nations. To understand the complex situation that can occur when a worker is sent to an international mission – solely on the basis of the cost of social security – you consider charts 2 and 3 below, which show the social contributions of workers and employers as a percentage of income in a number of countries of origin.
The charts use US$150,000 and the corresponding monetary value in the countries concerned. Each totalization agreement has an exception for international staff. Under this exception, a person temporarily transferred to the service for the same employer in another county is covered only by the national form he or she received. Workers and employers continue to pay contributions to the national social security system. The term „totalization“ defines the second objective of the agreement. The ultimate goal is for a worker`s social benefits, whether paid in Switzerland or abroad, to be added up (or added up) so that the worker can, if eligible, withdraw these funds from a single government. If individuals are required to contribute to social security programs outside their home country, they are entitled to receive these benefits if they meet certain specifications set by the host government.