India on Tuesday called on the United States to consider signing a totalization agreement to avoid a double deduction of the incomes of workers working in the other company`s countries and to allow Indian partial-unemployment workers in the United States to recover billions of dollars in social security deposits. While the SSA is focused on easing the cross-border complexity of social security, there are still some issues and challenges that require special attention to maximize the benefits of these bilateral agreements. Because different ASSs have different conditions and requirements, the conditions of each ASA must be carefully reviewed in order to obtain maximum benefits. SSA is a bilateral agreement between India and a foreign country, which aims to protect the interests of border workers. The agreement provides for the avoidance of “double coverage” and guarantees equal treatment of workers in both countries from a social security perspective. Although there are a number of practical challenges, the PF authorities have consistently clarified the way in support of the successful implementation of the SSA. The increasing coverage of countries under bilateral agreements, combined with good implementation, brings considerable benefits to the mobile population with its employers and is therefore a step in the right direction. “The United States believes that due to the incompatibility of the two social security systems, the totalization agreement may not be plausible in the current context,” says the joint CII-USIBC report, which recommends an analysis of the feasibility and prospects of an agreement. Prime Minister Narendra Modi spoke of the need for the totalization agreement, while Foreign Minister Harsh Vardhan Shringla said that the two issues relating to the H-1B visa, which has a direct impact on the IT sector, and totalization agreements with the US authorities were addressed. As per day, India has SSAs with at least 18 countries and the United States has an agreement with more than 24 nations. Despite years of negotiations, the United States has not signed the Totalization Agreement, also known as the Social Security Agreement (SSA) with India, to protect the rights of IT and other service workers who share their professional careers between India and the United States. “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.
Click here to read the Mint ePaperMint is now on telegram. Join the mint chain in your telegram and stay up to date with the latest economic news. In October 2008, the Indian government introduced specific provisions in the pension and pension system to define a new category of workers called the “International Worker” (IW) to eliminate the unfair advantage that foreigners had during employment in India and to create a level playing field for Indians working outside India. Sign in here to access free tools such as favorites and notifications, or to access personal subscriptions. During his visit to the United States in December, Secretary of State S. Jaishankar said, “At some meetings, I stressed our interest in ensuring that the flow of talent from India to the United States is not impeded and no inappropriate legislation should impede it.” “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. There have been rumours from Washington D.C that it is considering reducing the distribution of H-1B visas to Indians, which could have an impact on the Indian IT industry and its employees. India receives about 70% of the 85,000 H-1B visas per year. “In the absence of a SSA with the U.S., Indian employees face a difficult time, as billions of dollars of their revenues are invested in it.