India-U.K. Social Security Pact To End Double Contributions For Short-Term Workers

India and the U.K. on Tuesday signed an agreement aimed at eliminating double social security contributions for employees posted on short-term assignments of up to three years in each other’s territory.

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The agreement was signed by Foreign Secretary Vikram Misri and British High Commissioner Lindy Cameron.  According to the Ministry of External Affairs (MEA), the pact will support employee mobility and ensure continued social security coverage for those on temporary overseas assignments.

Coverage For Up To 36 Months

The agreement provides that employees from either country posted in the other for a period of up to 36 months will not be required to make social security contributions in both jurisdictions for the same period.
The MEA said the move is expected to enhance India–U.K. cooperation in the services sector by facilitating movement of skilled professionals.

IT Companies Likely To Benefit

Information technology companies such as Tata Consultancy Services (TCS) and Infosys, which have operations in the U.K., are expected to benefit from the arrangement. Employees deputed from India to the U.K. for short-term assignments will not be required to make social security contributions in the host country for up to three years.

The government said around 75,000 Indian workers are likely to benefit from the measure.

Linked To India–U.K. Trade Deal

The social security agreement forms part of the broader India–U.K. Comprehensive Economic and Trade Agreement (CETA). Both sides had committed to finalising the pact at the time of signing CETA in July last year.
According to the MEA, the agreement will come into effect along with CETA, which is planned for implementation in the first half of the current year.

The ministry added that the signed agreement will be made available on the websites of the Ministry of External Affairs and the Employees’ Provident Fund Organisation to enable eligible employees to obtain Certificates of Coverage and avoid double contributions.