India-UK Pact to Eliminate Double Social Security Contributions

India and the United Kingdom have successfully concluded negotiations for a pivotal social security pact, aiming to prevent Indian professionals who work in the UK for short periods from having to contribute twice to social security funds. This move is expected to significantly benefit Indian businesses.

The announcement coincided with the unveiling of a bilateral free trade agreement, signaling a strengthening of economic ties between the two nations. Currently, Indian professionals in the UK contribute to local social security but fail to receive benefits upon returning home after completing their assignments.

Business leaders have long advocated for this change, citing the financial burden of approximately 500 British pounds per Indian employee each year, attributed to mandatory National Insurance contributions. India's existing agreements with other nations further alleviate such dual contributions for their citizens abroad.

(With inputs from agencies.)