Archive · 17 Sep 2025
Indian Workers Lose Billions Due to U.S. Social Security Gap
Imagine Indian workers pay into U.S. Social Security, like a retirement fund.
Because the U.S. and India lack a deal, many workers don't get this money back.
To receive benefits, you usually need 10 years of work in the U.S. Most Indian workers leave sooner.
The money goes to help current U.S. retirees.
Other countries have agreements, allowing citizens to get money back or combine work years for benefits.
India is trying to reach an agreement with the U.S. to resolve this.
Indian workers on temporary visas pay U.S. social security taxes.
The U.S. and India lack a totalization agreement.
This missing agreement causes billions of dollars to be lost annually.
Money goes into the U.S. Social Security Trust Funds.
Agreements with other countries allow workers to receive benefits or avoid double taxation.
- Who
- Indian tech professionals in the U.S.
- What
- Loss of social security contributions due to lack of agreement.
- When
- Over the past two decades, particularly since 2002.
- Where
- United States.
- Why
- Without an agreement, workers typically don't stay long enough to receive benefits.
- Issue
- Lack of a totalization agreement between the U.S. and India
- Affected Group
- Indian professionals on temporary work visas (H-1B and L-1)
- Financial Impact
- Billions of dollars lost annually due to social security contributions
- Social Security Contribution
- 7.65% of gross wages (6.2% Social Security, 1.45% Medicare)
- Benefit Eligibility
- Requires 40 quarters (10 years) of contributions for U.S. benefits
- Lost Contributions
- Funds go to U.S. Social Security Trust Funds
- Countries with Agreements
- Over 30, including Canada, UK, Germany, and South Korea
