Social Security Agreement with India: What It Means for You
The United States and India recently signed a Social Security Agreement (SSA), which is good news for anyone who works or has worked in both countries. The agreement will help ensure that people receive the social security benefits they are entitled to, even if they have divided their careers between the two countries.
What is a Social Security Agreement?
A Social Security Agreement is a treaty between two countries that helps workers who divide their careers between the two countries. SSAs are designed to eliminate dual social security taxation, which can happen when a worker and their employer both have to pay social security taxes to both countries. SSAs also ensure that workers receive social security benefits from both countries based on their combined work histories.
Benefits of the Agreement
The Social Security Agreement between the United States and India will provide several benefits for workers who have divided their careers between the two countries. These benefits include:
1. Elimination of Dual Social Security Taxes: The SSA will eliminate dual social security taxation, which means that workers and their employers will only need to pay social security taxes to one country at a time. This will help workers avoid paying excessive social security taxes and increase their take-home pay.
2. Social Security Benefits: The SSA will also ensure that workers receive social security benefits based on their combined work histories in both countries. This means that workers who have divided their careers between the United States and India will be entitled to social security benefits from both countries.
3. Portability of Benefits: The SSA will allow workers to continue to receive social security benefits even if they move permanently from one country to the other. This means that workers who have worked in the United States but then move to India will still be entitled to receive their social security benefits.
How to Take Advantage of the Agreement
If you have worked in both the United States and India, you may be eligible to take advantage of the Social Security Agreement. To do so, you will need to apply for benefits in the country where you currently reside. If you are in the United States when you apply, you can contact the Social Security Administration for more information.
If you are in India when you apply, you can contact the Employees` Provident Fund Organization (EPFO) for more information. The EPFO is the agency responsible for administering social security benefits in India.
Final Thoughts
The Social Security Agreement between the United States and India is good news for workers who have divided their careers between the two countries. The agreement will help ensure that workers receive the social security benefits they are entitled to and eliminate dual social security taxation. If you have worked in both countries, be sure to take advantage of this agreement and apply for the social security benefits you are entitled to.