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Social Security Agreement India

by on Apr.12, 2021, under Uncategorized

“India is in favour of discussions due to the introduction of new social security systems in the country in recent years and the expansion of coverage, which has led to greater compatibility of the two countries` systems,” a development official told BusinessLine. While cross-border issues have arisen in the areas of taxation, immigration and social security in recent times, social security issues are also becoming more important, as they concern the pension benefits of individuals who, across borders, venture for employment. 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. According to Richa Mohanty Rao, partner of the law firm Cyril Amarand Mangaldas, SSAs are akin to double taxation agreements in which workers in the signatory states are not subject to the social security laws of the host state when they contribute in their country of origin. The result is a more equitable treatment of employees and employers on the basis of reciprocity, she added. “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. New Delhi and Washington had several roundtable discussions on a totalization agreement a decade ago. But the talks were suspended because the United States said that India had not been able to offer its citizens enough social security and that the two countries` systems were too incompatible for a pact to be drawn up. 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. During this period, India signed and commissioned 18 SSAs with other countries.

As a general rule, benefits such as replacement, pension exportability, total benefits and withdrawal of social security benefits are available under this SSA. A totalization agreement, commonly known as the Social Security Agreement, exempts foreign workers with non-permanent visas from social security contributions in the country of employment, where they are not entitled to reimbursement. As part of the secondment or abolition of the dual contribution, workers who have moved to a SSA country are exempt from social security in the host country for a certain period of time (specific to each SSA), provided that they continue to pay social security contributions in their home country. This benefit can be used by obtaining a “guarantee certificate” (CoC) from the national authorities responsible for social security and presented to the social security authorities of the host country. 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.


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