Labour, Social Affairs and the Family Minister Ján Richter and US Ambassador to Slovakia Theodore Sedgwick on Monday, December 10, signed an agreement between Slovakia and the US on social security, the TASR newswire learned later on the same day.
"Slovakia has until now observed ... a contract that is 50 years old and doesn't comply with current international requirements. For this reason, it was essential to approve a specific document that would stipulate the direct relationship between the countries," said the Slovak labour minister. Richter added that the contract is especially important as it concerns a large number of Slovaks living and working in the US. According to the agreement, those working abroad - either Slovaks in the US or US citizens in Slovakia – will not be obliged to pay taxes in both countries simultaneously but only in the one in which they work.
Moreover, Slovaks and Americans working in each other's countries will be able to receive pensions, to which they will be eligible thanks to being insured there - regardless of where they are currently living. The US ambassador observed that such contracts bring benefits not only to employees but also to employers and governments, especially when the complicated situation on the global market is taken into account. As of 2011, Slovak social insurer Sociálna poisťovňa was paying pensions to 399 people living in the US. The number of US citizens employed in Slovakia was 279.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
11. Dec 2012 at 14:00