Social security for Indians in the US
TIMES NEWS NETWORK[ TUESDAY, DECEMBER 05, 2006 02:37:27 AM]
NEW DELHI: Responding to a long-standing demand of Indian professionals working in the US for a short span, the US has decided to take up the issue of finalising a ‘totalisation’ agreement with the Indian government to ensure that their social security contribution in the US does not go waste.
The agreement will ensure that Indians working in the country get the social security benefits that they have paid for in the US in the form of a social security tax when they return to India.
Visiting US under secretary for international trade Franklin L Lavin has said that the talks were likely to begin next week.
Heading the largest-ever delegation of 250 American companies to India, the US official urged India to show flexibility in the ongoing multi-lateral trade negotiations at the World Trade Organisation (WTO) to get the Doha round moving.
Speaking at a conference organised by CII, Mr Lavin said that while the US was prepared to move in the area of trade-distorting domestic subsidies, Brussels and New Delhi should also respond positively.
The US Under Secretary’s assurance on a totalisation agreement is especially welcomed by software professionals holding H1-B visas, who work for a short duration in the US, and hence are not able to gain from the social security system. The H1-B visa holders are allowed to work in the US for a maximum of six years, whereas to get benefits of the US social security system, one has to work in the country for a minimum of 10 years.
Mr Lavin pointed out that several initiatives have resulted in greater Indo-US business cooperation. These include the open-skies agreement in civil aviation, due to which passenger traffic has increased 60% in the last year.
Tariffs on industrial goods have also come down substantially. It has also liberalised the entry of
foreign education institutes that will help US universities and institutes set up campuses in India. This will help India meet it requirements for human resources in
the near future, he said.
TIMES NEWS NETWORK[ TUESDAY, DECEMBER 05, 2006 02:37:27 AM]
NEW DELHI: Responding to a long-standing demand of Indian professionals working in the US for a short span, the US has decided to take up the issue of finalising a ‘totalisation’ agreement with the Indian government to ensure that their social security contribution in the US does not go waste.
The agreement will ensure that Indians working in the country get the social security benefits that they have paid for in the US in the form of a social security tax when they return to India.
Visiting US under secretary for international trade Franklin L Lavin has said that the talks were likely to begin next week.
Heading the largest-ever delegation of 250 American companies to India, the US official urged India to show flexibility in the ongoing multi-lateral trade negotiations at the World Trade Organisation (WTO) to get the Doha round moving.
Speaking at a conference organised by CII, Mr Lavin said that while the US was prepared to move in the area of trade-distorting domestic subsidies, Brussels and New Delhi should also respond positively.
The US Under Secretary’s assurance on a totalisation agreement is especially welcomed by software professionals holding H1-B visas, who work for a short duration in the US, and hence are not able to gain from the social security system. The H1-B visa holders are allowed to work in the US for a maximum of six years, whereas to get benefits of the US social security system, one has to work in the country for a minimum of 10 years.
Mr Lavin pointed out that several initiatives have resulted in greater Indo-US business cooperation. These include the open-skies agreement in civil aviation, due to which passenger traffic has increased 60% in the last year.
Tariffs on industrial goods have also come down substantially. It has also liberalised the entry of
foreign education institutes that will help US universities and institutes set up campuses in India. This will help India meet it requirements for human resources in
the near future, he said.
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