India proposes UK-style totalisation pact with US

India has proposed signing a social security totalisation agreement with the United States (US) on the lines of the Double Contributions Convention (DCC) agreement it concluded with the United Kingdom (UK) earlier this year, official sources told Business Standard.

- SHIVA RAJORA

The DCC agreement, signed on July 24 as part of the Comprehensive and Economic Trade Agreement (CETA), exempts Indian workers and their employers from paying UK social security contributions for up to three years when on temporary assignments. Around 75,000 workers and over 900 companies are expected to benefit, resulting in savings of more than₹4,000 crore as a result of the agreement.

The proposal to the US has been made as part of the ongoing talks for a Bilateral Trade Agreement (BTA) between both sides. “India and the UK signed a DCC deal earlier this year which allows Indian workers to pay social security contributions solely in their own country for a period of three years. We remain hopeful of a similar agreement with the US and have proposed one in our ongoing talks. Discussions too, have also happened on the matter,” the official said.