Indian workers in the UK exempt from social security contributions for up to 36 months

About 75,000 Indian workers in the UK will not be required to contribute to the UK’s social security system for up to 36 months.

The Double Contribution Convention, which is part of the Comprehensive Economic and Trade Agreement (CETA) signed between India and the UK on Thursday, will ensure cost-effective worker mobility and enhanced ease of doing business between the two countries.

The convention will exempt Indian professionals and their employers from social security payments in the UK for up to three years, improving the cost competitiveness of Indian talent, the commerce and industry ministry said after the signing of the agreement in the UK.


India has similar social security agreements with more than 20 countries including Germany, Canada, Japan, Australia, Brazil and South Korea.

It comes as a big relief for Indian professionals going for short-term projects to the UK as, in the absence of a social security agreement (SSA), they might have to contribute to the social security systems of both their home country and the country they would be working in, leading to double taxation.

SSAs take into account the periods of work in different countries when determining eligibility for benefits like pensions while also allowing portability of benefits.

“The UK–India Double Contributions Convention is a game changer for Indian IT companies deploying talent to the UK. With short-term assignments being central to project delivery, this convention will significantly reduce assignment costs while ensuring continuity of social security coverage in India,” said Puneet Gupta, partner, people advisory services-tax , EY India.

Pooja Ramchandani, partner, Shardul Amarchand Mangaldas, said the India-UK Social Security Agreement marks a significant step towards ease of doing business. “It will make cross-border mobility more viable by eliminating the burden of double social security contributions benefitting business and employees alike,” he said.

The exemption is expected to make it more attractive for Indian youths to pursue short-term work assignments and gain international exposure.

“The exemption is a huge benefit for Indian companies deploying staff in the UK, as both Indian employers and employees will substantially benefit from the reciprocal double contribution convention, akin to a social security agreement,” said Debjani Aich, partner, CMS INDUSLAW. “The exemption will ensure that social security contributions of provident funds will now need to be remitted only in the home country, a substantial financial comfort for both parties.”