India-UK Trade Pact to Grant Five-Year Social Security Exemption for Indian Professionals

Indian companies operating in the United Kingdom will benefit from a significant reduction in employment costs as a new social security agreement between India and the UK comes into force on July 15 alongside the Comprehensive Economic and Trade Agreement (CETA).

Under the Double Contribution Convention (DCC) , Indian employees temporarily deputed to the UK and their employers will be exempt from making social security contributions in the host country for up to five years , while continuing to contribute to India's social security system. The exemption period has been extended from the previously proposed three years to five years.

The Commerce Ministry said the agreement would prevent the burden of dual social security contributions , a longstanding concern for Indian companies with operations in the UK. The measure is expected to benefit more than 75,000 Indian professionals and over 900 Indian companies operating in the British market.

According to the ministry, the DCC will support the mobility of skilled professionals and ensure continuity of social security coverage for employees on temporary overseas assignments. The government said the arrangement would strengthen India-UK cooperation in the services sector by enabling businesses to deploy talent more efficiently across borders.

The exemption is expected to provide a major boost to India's information technology and consulting sectors, particularly companies such as Tata Consultancy Services (TCS), Infosys and other firms that regularly send employees to the UK for project-based assignments. By eliminating the requirement to contribute simultaneously to social security systems in both countries, the agreement is likely to lower operational costs and improve the competitiveness of Indian service providers.

The development assumes added significance as the UK remains the second-largest export market for India's $283-billion IT industry , accounting for nearly 17 per cent of the sector's export revenues .

The social security pact forms a key component of the broader India-UK trade framework and is expected to facilitate greater professional mobility, encourage business expansion and deepen economic ties between the two countries.