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india us totalization agreement

What is this agreement all about?
Why this agreement is still pending ?
Its not clear to me.
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  • @mishka

    India US totalisation agreement or totalisations agreements in general

    First, totalisation agreements deal with social security that is pension and other benefits.
    Under Indian Law a firm employing above lets say 100 workers shall provide for pension. So the firm starts contributing every month to an employee’s social security account.

    Now lets say this firm has a subsidiary in US and it wants to send its indian employee to its US subsidiary.
    Now, the US law demands that the firm pays the social security for the employee in US as well to their some equivalent provident fund (also keep in mind that the firm is already paying for the person back in india)

    Two things have happened, one the social security for the employee is getting paid at two places,,, so its high cost
    Second, the person is not allowed to get the social security money back unless he the contributions have been over 10 years,,,so even the employee does not gain,,,

    so to avoid this situation we want a agreement for social security with US,,so that the above situation is remedied,,it will be better for employer as well as employee,,,
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