India's Milestone Social Security Exemption for UK-Based Workers

India has negotiated a significant three-year exemption from social security contributions for Indian workers temporarily in the UK, as part of the Double Contribution Convention Agreement. This new agreement was announced alongside a broader free trade pact between India and the UK.

According to officials, the arrangement is expected to lead to savings of roughly 20% of salary costs and benefit over 60,000 employees in the IT sector alone. In total, the exemptions could bring over Rs 4,000 crore in benefits to Indian companies and professionals.

Commerce ministry officials stated that this agreement would make Indian service providers considerably more competitive in the UK market. Previously, Indian professionals had to contribute to UK social security funds without reaping the benefits, but now, under this agreement, those on temporary assignments can maintain their connections with social security schemes in India.

(With inputs from agencies.)