Saturday Session on Current Affairs by Mr. Abhishek Juneja. More than 250 students attended the session.
- A totalization agreement between the US and India has been a long-standing demand by the IT industry.
What is Totalization agreement?
Totalization agreements are a means of protecting the benefit rights of workers who divide their working career between two or more countries. They also help to eliminate situations in which workers or employers are required to pay Social Security taxes to two countries on the same earnings. In addition, totalization agreementsremove legal obstacles that prevent a person who has earned benefits in one country from receiving those benefits while residing in the other country.
- It will allow Indian workers stationed in the US to bring back contributions they make to the US social security system on their return to India. Indian IT workers who are in the US for temporary work pay as much as $1 billion towards social security a year but don’t stay long enough to get the benefits.
- The US has totalisation agreements with 25 countries, including the UK, Australia, Japan and South Korea.
- UN Economic and Social Commission for Asia and the Pacific (ESCAP), in a report, has said the 8% GDP growth in India from 2004 to 2011 has led to a sharp decline in poverty from 41.6% to 32.7%. And this has made India achieve the first Millennium Development Goal (MDGs) set for 2015 of reducing poverty by half.