Key Points
- India aims to include Social Security Agreements (SSAs) in all Free Trade Agreements (FTAs), including ongoing talks with the US.
- The India-UK FTA’s “Double Contribution Convention” exempts Indian professionals in the UK from paying into both countries’ social security systems for three years.
- SSAs prevent double social security contributions, ensure portability of benefits, and provide equal treatment for Indian workers abroad.
- India has signed SSAs with 22 countries, including Germany, France, Australia, and the UK.
- Push for SSAs is urgent as a July 9, 2025 deadline looms for potential US tariffs on Indian goods if no interim trade deal is reached.
- Labour Ministry urges mandatory inclusion of SSAs in all future trade agreements to protect India’s global workforce.
New Delhi: India is taking a bold step to protect its rapidly growing global workforce by making Social Security Agreements (SSAs) a top priority in all Free Trade Agreement (FTA) negotiations including ongoing talks with the United States. This strategic move was underscored in a high-level meeting between Union Minister of Labour and Employment Mansukh Mandaviya and Commerce and Industry Minister Piyush Goyal.
What Are Social Security Agreements (SSAs)?
SSAs, also known as Totalisation Agreements, are bilateral pacts designed to coordinate the social security systems of two countries. Their main objectives are:
- Preventing Double Contributions: Employees posted abroad temporarily can avoid paying into both their home and host country’s social security systems.
- Totalisation of Benefits: Contribution periods in both countries are combined to help employees qualify for pensions, disability, or survivor benefits.
- Portability: Workers can receive benefits earned abroad even after returning home or moving to a third country.
- Equal Treatment: Indian professionals receive the same social security benefits as local employees in the host country.
India-UK FTA: A New Benchmark
The recently concluded India-UK FTA features a “Double Contribution Convention,” allowing Indian professionals temporarily working in the UK to be exempt from UK social security contributions for up to three years. They only contribute to India’s Employees Provident Fund Organisation (EPFO), resulting in substantial savings and streamlined benefits.
How SSAs Benefit Indian Professionals and Employers
- Financial Relief: No more double deductions from salaries, leading to higher take-home pay and reduced employer costs.
- Retirement Security: Workers can combine contribution periods from both countries to qualify for pension and other benefits, even with split careers.
- Benefit Portability: Pensions and other accrued benefits can be received in India or a third country, adding flexibility for returning employees.
- Boost for Employers: Indian companies save on social security costs for employees on international assignments, making global mobility more feasible.
India’s Expanding SSA Network
India has signed SSAs with 22 countries, including major economies such as:
- Germany
- France
- Australia
- United Kingdom
- Belgium
- Switzerland
- Canada
- Japan
- Brazil
- South Korea
- And others
For example, under the India-Germany SSA, Indian professionals can work in Germany for up to 48 months (extendable by 12 months) while contributing only to the EPFO and not the German system, thanks to a Certificate of Coverage (CoC).
Strategic Push in US Trade Talks
India is now actively negotiating an SSA as part of its bilateral trade agreement with the US. This has gained urgency with a July 9, 2025 deadline looming if no interim trade agreement is reached, a 26% reciprocal tariff on Indian goods could be re-imposed by the US.
The Labour Ministry has formally requested the Commerce Ministry to make SSAs a mandatory clause in all FTAs, leveraging India’s improved social security coverage, which now exceeds 64% according to International Labour Organisation (ILO) data.
Why This Matters
With increasing numbers of Indian professionals in IT, healthcare, engineering, and other sectors working abroad, SSAs are crucial for:
- Protecting workers’ rights and financial interests
- Encouraging global workforce mobility
- Strengthening India’s position in international trade negotiations
The inclusion of SSAs in all FTAs reflects India’s commitment to its diaspora and global workforce. As India continues to negotiate with the US and other major economies, these agreements are set to become a cornerstone of India’s international trade and labour policy.
