India And U.S. Negotiating Totalization Agreement

From the Economic Times of India:

India and the US have started work on a totalisation agreement under which Indians employed for a stipulated period in the US will not have to contribute to social security.

According to government estimates, Indians working short-term in the US contribute up to $1 billion to the US kitty every year as social security contribution. While talks are in the initial stage, India is happy that the US has agreed to have a discussion on the issue.

Earlier, the country was unwilling to consider a totalisation pact because of differences in India and the US social security structure.

Speaking to ET, official sources said a team from the US government had visited India recently to examine India’s social security system.