Our Bureau
New Delhi
India and the United Kingdom have agreed to implement a landmark social security arrangement under their Comprehensive Economic and Trade Agreement (CETA), granting Indian professionals working temporarily in Britain an exemption from paying social security contributions in the host country for up to five years. The provision, set to take effect from July 15, is expected to benefit nearly 75,000 Indian professionals and more than 900 Indian companies operating in the UK.
The agreement, known as the Double Contribution Convention (DCC), removes the requirement for Indian employees on short-term assignments in the UK and their employers to contribute simultaneously to both Indian and British social security systems. Instead, workers will continue contributing only to their home-country social security scheme during the exemption period.
Government officials estimate that around 90-95 per cent of Indian professionals sent to Britain by Indian firms will benefit from the measure. The move is expected to reduce operating costs for companies, particularly in the information technology and professional services sectors, enhancing the competitiveness of Indian businesses in the UK market.
The exemption period has been extended from three years to five years, a longstanding demand of India during trade negotiations. Industry experts say the arrangement will provide significant financial relief, as social security contributions in the UK can account for a substantial share of employee compensation costs.
The DCC will come into force alongside the broader India-UK trade agreement, which provides duty-free access for 99 per cent of Indian exports to the UK and aims to deepen bilateral trade and investment ties. Commerce Minister Piyush Goyal said the simultaneous implementation of the agreements would create new opportunities for Indian exporters and service providers.
Officials believe the social security pact will strengthen workforce mobility between the two countries while reinforcing India’s position as a major supplier of skilled professionals to the British economy.
