The India UK Free Trade Agreement (FTA), which came into effect on 15 July, is not just about reducing tariffs. It also includes a major social security deal that directly benefits Indian professionals working in Britain.
Under the Double Contribution Convention (DCC), Indian employees temporarily posted to the UK will no longer have to pay into Britain’s National Insurance system for five years. Instead, they will continue contributing to India’s Provident Fund. This means they avoid losing nearly a quarter of their salary to a system from which they would not have received benefits.
The pact covers “detached workers” — employees already working for Indian companies who are sent to the UK for up to 60 months. It does not apply to Indians who move to the UK and take up local jobs. More than 75,000 Indian workers and 900 employers are expected to benefit, with estimated annual savings of over $600 million.
The same arrangement applies to UK nationals temporarily working in India. They will be exempt from contributing to India’s Employees’ Provident Fund and will continue paying into the UK’s National Insurance, ensuring uninterrupted coverage.
The agreement is part of India’s broader push to secure social security deals with countries where its professionals work. Similar arrangements already exist with Belgium, Germany, France, Switzerland, Denmark, South Korea, and the Netherlands.
While Indian workers in the UK will still need to pay the immigration health surcharge for access to the National Health Service, the DCC removes a major financial burden. Experts say the deal will boost IT companies such as TCS and Infosys, and strengthen India UK cooperation in services.
