(UNITED STATES) A long-running gap in bilateral policy is costing many Indian professionals in the United States real money and long-term security. Despite years of talks, India and the United States still lack a Social Security totalisation agreement, leaving thousands of skilled workers who pay U.S. payroll taxes unable to claim benefits later if they don’t meet U.S. credit rules or if they retire in India. Negotiations continued through 2024 and into 2025, but as of September 18, 2025, there is no signed, ratified pact. Officials on both sides acknowledge the talks, while advocacy groups urge faster progress to prevent more forfeited contributions.
What is a totalisation agreement and why it matters
At its core, a totalisation agreement is a treaty that links two countries’ social insurance systems so people who split their careers between them are not taxed twice and don’t lose credit for time worked abroad. The United States already has such Social Security agreements with many countries.
These pacts typically do two things:
– Remove double contributions for workers on temporary assignment by allowing exemption from one system.
– “Totalise” coverage by letting people combine work periods from both countries to qualify for retirement, disability, or survivors benefits.
Without this framework between India and the United States, Indian workers in U.S. roles keep paying FICA taxes, but many cannot later draw a benefit if they leave before earning enough U.S. work credits.
The current situation for Indian professionals
Indian tech and other skilled workers often come to the U.S. for roles that last several years, sometimes on visas that do not lead to permanent residence. During those years, they pay into Social Security from every paycheck. But U.S. eligibility rules require a minimum number of work credits—often built over roughly 10 years of covered employment—to draw a retirement benefit.
Unless they reach that threshold while still in the country, their contributions sit in the system without a path back to the worker. According to analysis by VisaVerge.com, the collective sum at stake runs into billions of dollars over decades, reflecting the size of the Indian diaspora in U.S. tech and the churn of project-based assignments.
Negotiations: progress and hurdles
Talks to fix this are active but complex. Indian ministers have said the issue features in bilateral forums and trade discussions. In early 2025, New Delhi pressed Washington again and shared more details about India’s social insurance coverage, which officials say has expanded sharply over the past decade.
However:
– U.S. authorities have not committed publicly to a timetable.
– A social security chapter was not included in a mini trade package discussed this year, underscoring the slow pace on this specific file even as other cooperation grows.
Human and employer impacts
The human impact is straightforward.
- A mid-career software engineer who spends six to eight years in the U.S. may contribute tens of thousands of dollars in Social Security taxes.
- If that person returns to India before hitting the minimum U.S. credits, current law provides no retirement payout tied to those contributions.
- Families planning college, mortgages, or elder care often count on a basic pension later in life; losing expected benefits can upend those plans.
Employers also feel the strain:
– Without a totalisation agreement, companies may face dual contributions when moving staff between countries.
– In countries with pacts, employers can obtain a certificate of coverage to avoid double payment—relief that is unavailable for India-U.S. assignments.
– This raises costs and complicates workforce planning for firms relying on specialized talent.
Why negotiations take so long
Totalisation agreements are technical documents that must reconcile multiple elements:
– Duration and nature of coverage
– Which contributions count and how benefits are calculated
– Record verification across borders and anti-fraud safeguards
– Financial estimates for crediting foreign coverage and paying benefits abroad
– Scope questions like who qualifies, treatment of non-resident contributions, and handling repeat movers
Both countries need to model financial impacts and align on legal, administrative, and compliance issues, which slows the process.
Practical steps for affected workers (while talks continue)
A few actionable steps can help Indian workers and families plan amid uncertainty:
- Keep excellent documentation:
- Employment letters, pay stubs, W-2s, and Social Security numbers tied to each job.
- Check your U.S. earnings record regularly:
- Ensure wages are posted correctly and correct errors early while employers can verify them.
- Model retirement scenarios:
- Calculate savings needs with and without potential U.S. benefits, especially if you may return to India before reaching the work-credit minimum.
- Track official updates:
- Monitor the U.S. Social Security Administration and India’s labour authorities for announcements.
- Talk with employers:
- Discuss assignment lengths or posting alternatives that might help you reach U.S. credit thresholds.
Important: If a pact is eventually signed, having clean documentation will make it easier to claim any benefit you’re due.
How totalisation agreements typically work (and what they wouldn’t do)
U.S. agreements with other countries provide a clear template:
– Workers on short assignments can often remain in their home system and avoid paying into the host system.
– People can add coverage periods from both countries to qualify for benefits.
– Each country still pays benefits based on actual contributions to its own system—pacts do not make benefits larger or create special bonuses.
If India and the U.S. reach a deal, it would likely follow this well-tested model: prevent gaps and double payment, not change benefit formulas.
Policy context and outlook
Officials in New Delhi emphasize that India’s social protection net and administrative capacity have expanded, strengthening the case for reciprocity. The U.S. Social Security Administration already manages many international agreements and pays benefits globally; its country pages list treaty partners—but India is not listed today.
For official information, the best starting point is the U.S. Social Security Administration’s international agreements page:
– https://www.ssa.gov/international/
Policy watchers caution against expecting a quick timeline. Drafting, legal review, and ratification can take substantial time, and domestic politics may influence sequencing. The issue has surfaced in high-level meetings under multiple administrations, and advocates hope the growing mobility of skilled workers and the payroll taxes at stake will keep this file on the agenda.
Final takeaways
- Indian professionals in the U.S. continue to contribute to Social Security with no guarantee those payments will support them later if they return to India before meeting U.S. work-credit requirements.
- A totalisation agreement would address fairness and predictability for workers and employers, but technical, financial, and political issues continue to slow progress.
- Until a treaty is signed and implemented, individuals should plan conservatively: consider staying long enough to qualify if feasible, increase retirement savings if not, and keep meticulous records.
The policy choice ahead is whether the two governments will bridge this gap—and when.
This Article in a Nutshell
Indian professionals working in the United States face potential loss of Social Security benefits because India and the U.S. do not have a totalisation agreement as of September 18, 2025. Totalisation pacts prevent double taxation and allow workers to combine coverage to qualify for retirement, disability, and survivors benefits. Many Indian tech workers pay FICA taxes during multi-year assignments but may leave the U.S. before acquiring the roughly ten years of covered employment needed to qualify for benefits. Negotiations continued through 2024 and into 2025, but no timetable or signed pact exists. The delay stems from technical, financial, legal, and administrative complexities; advocates urge faster action. Meanwhile, workers should maintain precise documentation, verify earnings records, model retirement scenarios, and coordinate with employers to mitigate risk.
