Many Indian tech professionals and skilled workers in the United States are contributing billions of dollars to U.S. Social Security, but are unable to claim those benefits or get credit for them in India. This situation arises because India and the U.S. have not yet entered into a “totalisation agreement” (also called a Social Security Agreement).
A totalisation agreement is a bilateral pact designed to avoid double social security taxation and ensure that workers who split their careers between two countries don’t lose out on benefits. Without such an agreement, workers must often pay into both the U.S. system (e.g. Social Security) and India’s system (e.g. Employees’ Provident Fund) for overlapping periods. Despite these contributions, they may not meet eligibility requirements in either country to receive full benefits, because each country may demand minimum years of coverage that the worker hasn’t satisfied under its system.
India has been pushing to finalize such an agreement with the U.S. for several years. Advocates say it would allow Indian workers abroad to avoid paying twice, help them claim benefits by combining periods of work in both countries, and reduce financial burden on both individuals and employers. However, negotiations have faced delays due to differences in how the two countries’ systems are structured—such as coverage scope, eligibility criteria, and administrative compatibility.
