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Revised India-UK Social Security Pact to Save $500 Million for Workers

The new social security pact between India and the U.K. aims to save $500 million for Indian firms and workers by extending exemption periods.

Revised India-UK Social Security Pact to Save $500 Million for Workers
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A revised social security agreement between India and the United Kingdom, set to take effect trade on July 15, is expected to save Indian companies and workers in the U.K. approximately $500 million in social security contributions, according to the Ministry of Commerce and Industry.

The original Agreement on Social Security, also known as the Double Contribution Convention (DCC), was signed in July 2025. It exempted U.K.-based companies from paying social security contributions for temporary Indian workers employed for up to three years, provided these workers contributed to social security in India during that period.

Under the revised pact, the exemption period has been extended to five years, covering an estimated 90-95% of Indian workers in the U.K. This change is expected to significantly reduce costs for the more than 900 Indian companies operating in the U.K. and the over 75,000 Indian workers currently employed there.

Previously, Indian workers in the U.K. faced the burden of paying social security contributions in both countries, despite being ineligible for U.K. benefits, which require ten consecutive years of contributions. The updated agreement resolves this issue by ensuring that most temporary workers are exempt from double payments. Companies will need to obtain a certificate from the Indian government confirming that social security contributions are being made in India to avail of the exemption in the U.K.

The announcement of the DCC’s implementation coincides with the activation of the Comprehensive Economic and Trade Agreement (CETA) between India and the U.K., which had been delayed due to a dispute over U.K. steel import tariffs. The two governments recently resolved the issue, ensuring that India retains market access for its steel exports.

The specifics of the concessions granted to India regarding steel tariffs will be disclosed on July 1, when the U.K.’s new tariff regime takes effect. Officials have indicated that the resolution includes a mix of country-specific quotas, residual quotas, and access under authorised-use schemes.

This dual breakthrough on social security and trade underscores strengthened economic ties between India and the U.K., benefiting businesses and workers alike.

Frequently asked questions

How much money will the revised India-UK Social Security Pact save?

The revised pact is expected to save Indian companies and workers in the U.K. approximately $500 million in social security contributions.

When does the revised Social Security Pact take effect?

The revised pact is set to take effect on July 15.

How long can Indian workers be exempt from U.K. social security contributions under the revised pact?

Under the revised pact, the exemption period has been extended to five years, covering an estimated 90-95% of Indian workers in the U.K.

What was the problem with the original agreement that the revised pact addresses?

Previously, Indian workers in the U.K. faced the burden of paying social security contributions in both countries, despite being ineligible for U.K. benefits, which require ten consecutive years of contributions. The updated agreement resolves this by ensuring that most temporary workers are exempt from double payments.

What documentation do companies need to obtain to receive the exemption?

Companies will need to obtain a certificate from the Indian government confirming that social security contributions are being made in India to avail of the exemption in the U.K.

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