India-UK Social Security Pact to Save Costs for Indian Professionals

India-UK Social Security Pact to Benefit Indian Professionals, Reduce Costs for Employers Starting July 15, thousands of Indian professionals working in the UK through Indian employers will no longer have to pay dual social security contributions, thanks to the India-UK social

security agreement. Officials estimate that 90-95% of such workers will benefit from the pact, which will come into effect alongside the India-UK Comprehensive Economic and Trade Agreement (CETA).

The Agreement on Social Security, also known as the Double Contribution Convention (DCC), is designed to lower employment costs for Indian companies operating in Britain.

It is expected to enhance the competitiveness of key sectors such as information technology and professional services.

Under the pact, employees temporarily deputed from India to the UK—or vice versa—will be exempt from contributing to the host country’s social security system for up to five years, provided they continue contributing in their home country.

Employers will need to provide a certificate of coverage to avail of this benefit. The exemption will be available only to employees of Indian companies on temporary assignments and will not apply to Indians directly employed by foreign companies in the UK.

Indian employers can begin taking advantage of this exemption from July 15. This development is particularly significant for major IT companies such as Tata Consultancy Services (TCS) and Infosys, which deploy a large number of professionals to the UK.

NewsDarpan

Read the full story

Read the full story