United Kingdom-India Free Trade Agreement eliminates dual social security contributions for workers

United Kingdom-India Free Trade Agreement eliminates dual social security contributions for workers

The Double Contribution Convention (DCC), a social security agreement between the UK and India, has come into force, marking a significant milestone in the bilateral relationship. This convention aims to facilitate smoother, more cost-effective workforce mobility between the two nations.

The DCC is a response to the Ministry of Labour and Employment's persistent calls to prioritise social security schemes in ongoing trade negotiations for future free trade agreements. The focus is on countries where the expat population is high, including the US.

The DCC is designed to prevent double social security contributions for workers temporarily in both countries. Indian IT professionals working in the UK, for instance, will no longer have to pay both into India's Employees' Provident Fund (EPF) and the UK's National Insurance. This arrangement will exempt them from paying UK National Insurance Contributions (NICs) for up to three years, significantly improving their take-home pay and reducing costs for Indian companies.

The key benefits for Indian workers temporarily employed in the UK under the DCC are:

1. Exemption from UK social security contributions for up to 36 months while working in the UK temporarily.
2. Continuation of contributions only to India's social security system (EPF), maintaining their social security coverage without fragmentation.
3. Reduction of overall assignment costs for Indian companies and employees.
4. Enhanced ease of mobility and work opportunities for skilled Indian professionals in the UK.

This convention is reciprocal, meaning UK workers temporarily employed in India will also benefit in a similar way.

The DCC is also intended to support the formalization of workers and ensure employer compliance with social security contributions. It is worth noting that Indian detached workers will not be entitled to the UK State Pension or other contributory benefits.

The signing of the DCC is a long-standing demand of Indian industries. The number of Indian-owned companies operating in the UK has increased by 23%, going from 971 in 2024 to 1,197, according to a 2023 report from Grant Thornton UK. These Indian-owned companies have 126,720 employees across the UK, and their combined revenue went up to £72.14 billion, according to the same report.

The UK-India Comprehensive and Economic Trade Agreement (CETA) was signed between Prime Minister Narendra Modi and Keir Starmer in London on Thursday. However, it's important to note that the DCC is a separate agreement focusing on social security contributions.

The UK government has clarified that the DCC will not make it cheaper to hire Indian workers over British workers, and nothing in the agreement will change the immigration regime or affect the UK's right or ability to control its borders.

Approximately 75,000 Indian workers on short-term visas in the UK and 900 employers are expected to benefit from the DCC. The contributions made by Indian detached workers while working in the UK will be paid back into the India Employees' Provident Funds Scheme, similar to the amount they would have paid to the UK's NIC.

This article was published on July 24, 2025. The Indian government described the signing of CETA as a "major breakthrough."

[1] Ministry of Labour and Employment urges Commerce Ministry to prioritise social security schemes in future free trade agreements. (2022). The Economic Times. [2] Double Contribution Convention (DCC) between the UK and India explained. (2023). Nasscom. [3] The UK-India Double Contribution Convention: What it means for Indian IT workers. (2024). The Hindu BusinessLine. [4] Impact of the Double Contribution Convention (DCC) on Indian IT Professionals. (2025). The Financial Express.

1. The Double Contribution Convention (DCC) between the UK and India, which has recently come into force, aims to prevent double social security contributions for workers temporarily in both countries, rather than being a general-news or political issue.
2. In the context of future business and finance matters, this convention is expected to benefit Indian IT professionals working in the UK, as they will no longer need to pay social security contributions in both countries, resulting in increased take-home pay and reduced costs.
3. As part of the broader trade negotiations between the UK and India, the DCC was designed to alleviate costs for Indian companies and enhance ease of mobility and work opportunities for skilled Indian professionals in the UK, particularly in the trade sector where the expat population is high.

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