International social security agreements are beneficial both for those who are currently working and for those whose careers have ended. For current workers, the agreements remove double contributions that they might otherwise make to the social security plans of the United States and another country. For people who have worked both in the U.S. and abroad and are now retired, disabled, or dead, agreements often result in the payment of benefits that the worker or their family members would not otherwise be entitled to. Any agreement (with the exception of the one concluded with Italy) provides for a derogation from the territoriality rule, which aims to minimise disruptions in the coverage of the careers of workers whose employers temporarily send them abroad. Under this derogation for “exempted workers”, a person temporarily transferred to another country for the same employer remains covered only by the country from which he or she was posted. For example, a U.S. citizen or resident who is temporarily transferred by a U.S. employer to work in a contracting country remains covered by the U.S. program and exempt from any coverage in the host country`s system. The worker and employer only contribute to the U.S.

program. New Delhi and Washington had several roundtables on a totalization agreement a decade ago. But talks were suspended because the U.S. said India was not providing enough social security for its citizens and that the two countries` systems were too incompatible for a pact to be worked out. “I told (US) President (Donald) Trump that the contribution of our social security professionals should continue to be discussed 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. U.S. exempt workers or foreign social security taxes under an agreement must document their exemption by receiving a certificate of coverage from the country that will continue to cover them.

For example, an American worker temporarily posted to the UK would need a certificate of coverage issued by the SSA to prove their exemption from UK social security contributions. Conversely, an employee residing in the United Kingdom, who works temporarily in the United States, would need a certificate from the United Kingdom authorities to prove the exemption from the American social security tax. Mohit Singla, president of the TPCI, said the tabination agreement is an international social security pact that eliminates double taxation of social security, both in his home country and in the country where an employee works. He said the deal should be part of the trade deal negotiated between India and the US. Indian industry in the United States pays about $1 billion for Social Security, which is only viable after 10 years. As the typical duration of a temporary holder of a high-qualification visa is three to six years, most workers cannot get any benefits, the Confederation of Indian Industry (CII) and the United States India Business Council (USIBC) said in a new report on Tuesday. . . .