The biggest beneficiaries are likely to be Indian companies that regularly send employees to the UK on temporary assignments, especially in IT and ICT sectors.
| Photo Credit:
The India-UK Double Contribution Convention (DCC) , set to take effect on July 15 alongside the bilateral Comprehensive Economic and Trade Agreement (CETA), is expected to save Indian companies and their employees more than $500 million annually by exempting eligible professionals working temporarily in the UK from making social security contributions there for up to five years, an official said.The exemption, which will benefit about 75,000 Indian professionals, will not be extended to Indians working for other foreign companies in Britain.“The new agreement will be on prospective basis. It will cover Indian employees of Indian companies working in the UK who are already contributing to social security in India. This will ensure that there is no dual contribution,” the official clarified.social securityThe Indian companies and employees will have to share certificates of social security coverage in the home country to gain exemptions in the UK under the DCC. As most short-term workers are unable to qualify for social security benefits in the UK, where entitlement generally requires around 10 years of contributions, the pact addresses a long-standing concern of Indian industry by preventing mandatory contributions that often yield no commensurate benefits, the official said.The biggest beneficiaries are likely to be Indian companies that regularly send employees to the UK on temporary assignments, especially in IT and ICT sectors. These include companies such as Tata Consultancy Services, Infosys, Wipro, HCLTech and Tech Mahindra.Explaining the expected savings of over $500 million for companies annually, the official noted that the average annual salary of a professional in the UK is estimated at GBP 40,000-50,000, of which about 15 per cent of the salary is paid towards social security contributions.“More than 75,000 Indian professionals and over 900 companies are expected to benefit. The agreement will support mobility and continued social security coverage of the employees on temporary overseas assignments. This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries,” according to a statement from the Commerce Department.The DCC will support business and trade by ensuring that employees moving between the UK and India, and their employers, will only be liable to pay social security contributions in one country at a time, according to the UK government.“The DCC will also ensure that employees temporarily working in the other country will continue paying social security contributions in their home country, preventing the fragmentation of their social security record,” the UK government posted on its website.Published on June 18, 2026
