India-UK Double Contribution Convention: A Win for Employers and Employees on Social Security
Updated: May 12, 2025 01:45
Image Source: The Financial Express
The India-UK Double Contribution Convention (DCC), agreed alongside the 2025 Free Trade Agreement, is a major benefit for employers and employees in cross-border employment. Indian temporary workers posted to the UK-and their employers-will be exempt from UK National Insurance contributions for up to three years, provided they remain paying Indian social security. This is similar to the arrangements made by the UK with the EU and other major partners.
For employers, it means significant cost savings through the avoidance of double social security contributions, thus becoming more attractive and inexpensive to send workers on international assignments. For workers, it prevents double deductions from their wages so that they are not contributing to two systems for the same period of time and can keep accumulating benefits in their own country. The DCC thus promotes labor mobility, reduces administrative expenses, and allows free business flows between India and the UK.