Frequently asked questions about the Social Security Agreement
Who will be able to benefit from the Social Security Agreement between Uruguay and Australia?
The Agreement will apply to individuals, regardless of their nationality, who are or have been subject to the social security legislation of Uruguay, or who reside or have resided in Australia. It will also apply to persons whose rights are derived from the above (e.g., family members or dependants).
What benefits will be covered by the Agreement?
In the case of Uruguay: The Agreement will cover contributory benefits for old-age, disability, and survivors, administered by the following institutions: Banco de Previsión Social (BPS), Caja Notarial de Seguridad Social, Caja de Jubilaciones y Pensiones de Profesionales Universitarios, Caja de Jubilaciones y Pensiones Bancarias, Retirement and Pension Services of the Police and Armed Forces.
In the case of Australia: It will apply to the laws forming part of the Australian social security legislation. It will not include benefits, payments, or entitlements related to the superannuation guarantee scheme.
What will be the basic principles of the Agreement?
a) Equal Treatment – Individuals covered by the Agreement will be entitled to benefits and subject to obligations under the legislation of the State where they carry out their activity, under the same conditions as nationals of that State.
b) Maintenance of Acquired Rights – Through the recognition of contribution periods and the totalisation of periods, applying the pro rata rule in accordance with the years recognised by each State.
c) Export of Benefits – If a right to a benefit is acquired in one of the Contracting States, that benefit can continue to be received even if the beneficiary or their dependants reside in the other State.
d) Exceptions to the Applicable Legislation – Special rules for temporarily seconded workers, transport sector workers, public servants, and diplomats.
e) Administrative Cooperation or Mutual Assistance:
- Documents submitted for the purposes of the Agreement are exempt from legalisation or apostille requirements by diplomatic or consular authorities, as well as from translation, notarisation, or registration.
- Copies of documents certified as authentic by the Competent Institution of one Contracting State will be accepted as authentic in the other State.
- Applications submitted in writing to the Competent Institution of one Contracting State will be considered as having been submitted to the Competent Institution of the other State.
What is totalisation of periods of work?
Totalisation ensures that social security rights are not lost due to having contributed in Uruguay or resided in Australia without meeting the minimum requirements in either State to access a benefit. Periods credited in both States can be combined, and each Competent Institution will take into account the periods accredited in the other State.
What is pro rata?
It complements totalisation. While a Competent Institution must totalise all contribution, periods credited in both States to determine eligibility, it will only pay the portion of the benefit corresponding to the periods credited in its own system.
Can contribution or employment periods prior to the entry into force of the Agreement be totalised?
Yes. Contribution periods in Uruguay or residence periods in Australia prior to the entry into force of the Agreement will be considered. However, this does not grant entitlement to benefits that could have been accrued before it came into force.
What are the requirements to access Australian benefits under the Agreement?
- A person without sufficient insurance periods to qualify under Australian legislation who has completed at least 12 months of residence in Australia, of which 6 months are continuous, may qualify by adding insurance periods completed under Uruguayan legislation.
- If an Australian resident has continuous residence periods of less than six months, multiple periods accredited under Uruguayan legislation can be totalised to meet the requirement.
- The Australian Competent Institution will consider periods under Uruguayan legislation provided they do not overlap with Australian residence periods.
What are the requirements to access Uruguayan benefits under the Agreement?
When insurance periods have been completed under the legislation of both Contracting States, the Uruguayan Competent Institution will take into account the periods completed under the legislation of the other State, provided they do not overlap.
What are temporary postings?
- If an employee working for a company headquartered in one State is sent to work in the other State, they will remain subject to the legislation of their country of origin for up to four years, exempting them from social security contributions in the host State during that time.
- The same rule applies to a self-employed worker who moves to the other State for up to four years.
Where should applications for benefits under the Agreement be submitted once it comes into force?
a) As a general rule, applications should be submitted to the Competent Institution of the State where the person resides at the time of application.
b) Applications can also be submitted to the Competent Institution of the State of residence even if the applicant has never been subject to its legislation, thanks to administrative cooperation.