The social security agreement was signed by Dutch Minister of Social Affairs and Employment Piet Hein Donner and Overseas Indian Affairs Minister Vayalar Ravi. "This agreement will strengthen the bilateral relations and it will enhance cooperation on social security between the two countries," said Ravi after signing the agreement. Donner said his country would like to see deeper bilateral cooperation with India. "We hope movement of professionals between the two countries will now increase."

The detached workers sent by Netherlands-based companies to their Indian subsidiaries, or those sent by Indian companies to their branches in the Netherlands will be exempt from social security contribution in the host country for a period of 60 months, said a statement issued by the ministry. This agreement provides that an employed or self-employed person, other than detached workers shall be subject only to the legislation of the host country. The agreement provides for portability of the benefits at the time of relocation. The agreement will come into effect after the fulfilment of the national requirements.

The greater part of highly qualified migrants in the Netherlands are Indians (2100 out of 7200 in 2008). Currently about 21,000 Indians are working in the Netherlands and over 850 Dutch nationals are working in India.