India-UK Trade Deal: A New Era for Professionals

In a significant move to enhance social welfare cooperation, India and the United Kingdom have agreed to negotiate a reciprocal Double Contributions Convention (DCC) alongside the Comprehensive Economic and Trade Agreement (CETA). This agreement marks a pivotal step towards easing the burden on employees temporarily working abroad and their employers by exempting them from social security contributions in the host country.

Highlights of the DCC: The DCC, set to enter into force simultaneously with the CETA, will allow Indian employees working in the UK for up to 36 months to pay social security contributions only in India. This exemption extends to the first 36 months, even if the assignment period exceeds this timeframe.

Exemption from UK National Insurance Contributions: The DCC extends the exemption period from UK National Insurance Contributions (NIC) from 52 weeks to 36 months for Indian employees, significantly reducing costs and compliance burdens for short-term assignments.

Conclusion

The India-UK DCC is a game-changer for Indian professionals and their employers, promoting seamless workforce mobility and ensuring continuity of social security benefits. Authored by Puneet Gupta, Partner, EY India, this development is a testament to the strengthening ties between India and the UK.