The totalization agreement between India and the USA has been in the headlines recently, as it is poised to benefit workers from both countries who have been contributing to the Social Security system. The agreement, which was signed in 2015, aims to eliminate dual social security taxation, thereby providing relief to Indian and American workers who pay social security taxes in both countries.
Under the agreement, Indian workers who have contributed to the Social Security system in the USA but have not met the eligibility requirements for benefits can now receive credit for their contributions. Similarly, American workers who have worked in India and have paid social security taxes there can now count those contributions towards their eligibility for Social Security benefits.
This agreement is expected to provide significant benefits to workers from both countries. Indian IT companies, which employ a large number of workers in the USA, are among those who stand to benefit the most. Currently, Indian workers in the USA pay social security taxes but are not eligible to receive benefits until they have worked for at least ten years in the US. With the totalization agreement in place, Indian workers will now be able to receive credit for their contributions towards their eligibility for Social Security benefits.
Similarly, American workers who have worked in India and have contributed to the Indian social security system can now count those contributions towards their eligibility for Social Security benefits. This is especially beneficial for those who have worked in India for a short period of time but have paid social security taxes there.
The totalization agreement between India and the USA is a win-win for both countries. It will provide much-needed relief to workers who have been paying social security taxes in both countries and will help to strengthen the economic ties between India and the USA. The agreement is expected to be implemented in the near future, and workers from both countries can look forward to a brighter future with the benefits it brings.