Totalization Agreement With India
Shivendra Singh, vice president and chief global trade development at NASSCOM, an interprofessional organization representing the $180 billion technology industry, said a totalization agreement would greatly relieve the Indian worker population in the United States and would also make it competitive for U.S. employers to employ Indian citizens. “Further, if the statute is to impose the requirements, the U.S. Congress must pass laws to amend those rules so that negotiations can continue,” he said. “The issue of totalization has also arisen. There was a feeling that Indian pros who spend less than eight years and contribute to social security… really need to get that money back,” Shringla said Tuesday. I told President (US) Trump that the contribution of our Social Security experts should be discussed further as part of a totalization agreement. It will be of mutual interest to both of us,” Narendra Modi told reporters in New Delhi with Trump. India supports the proposed discussions with the US Social Security Administration (SSA) on the long-standing totalization agreement, believing that the two countries` systems are now more compatible than before. The deal could help Indian companies in the United States save up to $4 billion in social security contributions a year. The Trade Promotion Council for India (TPCI) proposed Tuesday that India and the United States sign a totalization agreement because it will provide social security to Indian professionals in America.
The Indo-Japanese SSA is the 17th SSA that comes into force – countries with which India already has effective ASS are listed in the Schedule A table. “Once signed, the agreement would benefit workers in both countries and ensure equal treatment,” Singla said in a statement. Indian factories pay taxes on their income in the United States. Either they can receive all social security benefits after eight years, or their work visas are extended beyond 10 years so they are not affected and receive all benefits on an equal footing with U.S. citizens, he added.