Boost for Indian IT Workers in UK with Social Security Exemption

Indian IT companies such as Tata Consultancy Services (TCS) and Infosys received a significant advantage as the UK announced a three-year exemption from social security contributions for employees relocated from India. This move is set to benefit over 75,000 workers and more than 900 employers.

The exemption comes under the Double Contribution Convention (DCC) and coincides with the recently signed India-UK Free Trade Agreement (FTA), which has been hailed as a breakthrough by Commerce Minister Piyush Goyal. The UK, as the second-largest market for India's USD 283 billion IT sector, plays a crucial role in its exports, contributing 17% to its export basket.

This development is expected to ease the long-standing issue of dual contributions for Indian technology firms operating in the UK, enhancing their capacity to handle onsite projects. Furthermore, the FTA aims to expand bilateral trade by USD 34 billion annually, benefiting 99% of Indian exports from tariffs and facilitating the flow of products like British whisky and cars into India.

(With inputs from agencies.)