India's Potential Social Security Agreement (SSA) with the US

India is actively pursuing a Social Security Agreement (SSA) with the United States as part of broader bilateral trade discussions. Such agreements are expected to become crucial components of all future Free Trade Agreements (FTAs), including ongoing negotiations.

Current Status and Negotiations

• Discussions have advanced following a meeting between the Ministry of Labour and Employment and the Ministry of Commerce and Industry.
• The US's acceptance of India's proposal remains uncertain.

Understanding Social Security Agreements

An SSA is a reciprocal arrangement allowing:

• Employees on foreign assignments avoid contributing to the host country's social security fund.
• Employers to prevent dual social security contributions for their workers.

Indian workers abroad must obtain a Certificate of Coverage (CoC) from the Employees’ Provident Fund Organisation (EPFO) to bypass social security contributions in host countries.

India's Existing SSAs

India has SSAs with over 20 countries, including:

• Germany, France, Canada, Japan, Belgium, Switzerland, Denmark, and Australia.

Recent agreements like the India-UK FTA provide a three-year exemption from social security contributions for Indian professionals in the UK.

Significance and Future Prospects

• FTAs with social security clauses are in negotiation, including with the European Union.
• India's rise as a significant source of skilled manpower, especially in IT services, underscores the importance of SSAs.
• The expansion in India’s social security coverage over the past decade has bolstered its position in such negotiations.