India-US trade deal: New Delhi pushes for social security agreement with Washington; pact may feature in all future FTAs

India is actively exploring the possibility of signing a social security agreement (SSA) with the United States, in a move that could offer significant financial relief to Indian professionals working abroad.

According to ET, the development is part of a broader push by New Delhi to weave such pacts into all future free trade agreements (FTAs), including those currently being negotiated.


Top officials in the ministry of labour and employment confirmed that discussions are already underway. A recent meeting between labour and employment minister Mansukh Mandaviya and commerce and industry minister Piyush Goyal is believed to have touched upon the inclusion of SSA in the ongoing trade dialogue with the US.

However, a senior government source cited by ET said, “It has also been taken up with the US, but it is not clear as of now if the US will accept India’s demand.”

An SSA allows employees posted abroad to avoid mandatory contributions to the host country’s social security scheme, while still counting their overseas work period toward pension benefits at home.

For employers, it eliminates the burden of double social security payments, significantly reducing operational costs.

Indian employees on overseas assignments are required to obtain a Certificate of Coverage (CoC) from the Employees’ Provident Fund Organisation (EPFO) to qualify for exemption from local contributions. The EPFO is authorised to issue CoCs for countries that have signed such agreements with India.

India has already signed SSAs with 22 countries, including Germany, France, Canada, Japan, Australia, Switzerland and Belgium. Most recently, the finalised India-UK FTA also includes a social security clause, offering Indian professionals a three-year exemption from UK contributions during temporary postings. As per news agency PTI, the UK has agreed to this provision, and formal ratification is expected soon.

Mandaviya has publicly called for the inclusion of social security terms in all future trade negotiations, stating, “We are doing so to promote social security for all”.

The inclusion of SSAs in FTAs is seen as a strategic advantage, especially as India continues to emerge as a top source of skilled manpower. Talks are ongoing with the European Union and other partners, where similar provisions could follow.