Main Contents of the Social Security Agreement Between Korea and Austria

History of the Agreement with Austria

• May 2004 : The Korean draft of the Agreement sent to Austria
• Jun 2005 : The first working-level meeting of the Agreement in Austria
• October 2007 : The second working-level meeting of the Agreement in Korea
• Jun 2007 : The third working-level meeting of the Agreement in Austria
• September 2007 : The meeting for the Administrative Arrangement of the Agreement in Austria
• July 2009 : The meeting for the implementation of the Agreement in Korea
• January 2010 : The Agreement on Social Security and its Administrative Arrangement signed in Austria
• October 2010 : The Social Security Agreement between Korea and Austria entered into force

Applicable Legislation

Applicable Legislation

in relation to Korea	in relation to Austria
(i) the National Pension Act and its regulations (ii) with regard to Part II only, the Employment Insurance Act, the National Health Insurance Act, the Industrial Accident Compensation Insurance Act, the Act on the Collection of Premiums for Employment Insurance and for Industrial Accident Compensation Insurance and their regulations	(i) The legislation concerning pension insurance, with the exception of the insurance for notaries (ii) with regard to Part II only, the legislation concerning sickness insurance and accident insurance

Personal Scope of this Agreement

• This Agreement shall apply to any person who is or has been subject to the social security legislation of either contracting country and to other persons eligibility rights derived from such a person.
• ※ For more information, you may refer to the section Agreement

Exemption from Dual Coverage

• ① In general, an employee is subject to the legislation of a contracting country in which he/she is employed.
• ② In general, a self-employed person is subject to the legislation of the country in which he/she works.
  →A person who is engaged in self-employment in both contracting countries is subject to the legislation of only the contracting country of which he/she is a resident.
• ③ A detached worker is exempt from being subject to the legislation of the country which he/she is sent to for less than 5 years if he/she is covered under the legislation of his/her home country.
  →Based on mutual agreement between two countries, those periods can be extended.
• ※ For more information, you may refer to the section Agreement or Guide for Exemption Application

[ Applicable legislation under the Agreement ]

Applicable legislation under the Agreement

Type	Work Status	Coverage
Employee	You are working in Austria
	-for an employer in Austria who hired you	Austria
	- for an employer in Korea who sent you to work in Austria for less than 5 years (Based on mutual agreement between two countries, those periods can be extended.)	Korea
	- for an employer in Korea who sent you to work in Austria for more than 5 years without extension of detached period	Austria
	You are working in Korea
	- for an employer in Korea who hired you	Korea
	- for an employer in Austria who sent you to work in Korea for less than 5 years (Based on mutual agreement between two countries, those periods can be extended.)	Austria
	- for an employer in Austria who sent you to work in Korea for more than 5 years without extension of detached period	Korea
Self-employed	You are self-employed in Austria	Austria
	You are self-employed in Korea	Korea
	You are self-employed in both countries	Ordinary residence

Benefits under this Agreement

• Even though your periods of coverage in one country are not sufficient to qualify for pension benefits, you may be eligible for benefits after this Agreement has entered into force. This is possible due to totaling the coverage of both countries.
• ① Korean National Pension Benefits under the Social Security Agreement
• - If you do not have enough periods of coverage (e.g., 20 years for Full Old-age pension) to qualify for pension benefits under the Korean National Pension Scheme, you may be able to qualify for Korean National Pension benefits by totaling periods of coverage under the Korean and the Austrian pension systems. However, these periods creditable under the Austrian pension system, must not coincide with those under the legislation of Korea.
  - Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the benefits amount (Theoretical Benefit). The benefits amount (Theoretical Benefit) is calculated based on the total periods in both countries.
• ② Austrian Pension Benefits under the Social Security Agreement
• - If you do not have enough periods of coverage to qualify for pension benefits under the Austrian pension systems, you may be able to qualify for Austrian pension benefits by totalizing periods of coverage under the Korean and the Austrian pension systems. However, these periods creditable under the Korean National Pension Scheme, must not coincide with those of under the legislation of Austria.
• ③ A person who is or has been subject to the laws of one contracting country and who resides within the territory of the other contracting country, together with his dependents, receive equal treatment with the nationals of the other contracting country in the application of the laws of the other contracting country.
• ④ Korean lump-sum refunds are granted to Austrian nationals based on the Agreement. However, lump-sum refunds can be paid to nationals of a third state only in accordance with the reciprocity principle under the Korean National Pension Act.
• ⑤ There is no lump-sum refund under the Austrian social security system, and as such any contribution which a Korean national paid to the Austrian social security system will be granted in monthly installments not in a lump-sum.
• ※ For more information, you may refer to the section Agreement or Guide for Exemption Application

As regards

Korea	Austria
National Pension Service (NPS)	(1)Regarding "Benefits" Pension Insurance Institution (http://www.pensionsversicherung.at ) (2) Regarding "Exemption from Dual Coverage" Health Insurance Fund (http://www.sozialversicherung.at)