New India-UK pact to benefit 90-95% of Indian professionals in Britain
New Delhi, Jun 18, 2026
Under the DCC, employees temporarily transferred by companies from India to the UK, or vice versa, will be exempt from making social security contributions in the host country for up to five years
About 90-95 per cent of Indian professionals employed by Indian companies operating in the UK would benefit from the social security agreement between the two countries, a move that will reduce costs for firms and enhance the competitiveness of Indian service providers in the British market, an official said.
The two countries announced on June 17 that the Agreement on Social Security, or the Double Contribution Convention (DCC), and the Comprehensive Economic and Trade Agreement (CETA) will come into effect on July 15.
The DCC will give a major boost to IT majors like Tata Consultancy Services (TCS) and Infosys.
Professionals of Indian origin contribute about $0.5 billion each year to the UK social security.
Under the DCC, employees temporarily transferred by companies from India to the UK, or vice versa, will be exempt from making social security contributions in the host country for up to five years.
It was a key demand of India.
Around 75,000 Indian professionals are working in Britain, while over 900 Indian firms have operations there. The average annual salary of a professional in the UK is estimated at GBP 40,000-50,000.
According to estimates, about 15 per cent of the salary is paid towards social security contributions.
Normally, a professional becomes eligible for social security benefits in the UK after around 10 years of service.
"If an employer is contributing in India for the social security of the employee, they do not have to pay in the UK. For that, they have to share a certificate of coverage. From July 15, Indian employers can start enjoying this exemption," the official said.
However, the exemption is not available for Indians working for other foreign companies in Britain.
The agreement will support mobility and continued social security coverage of the employees on temporary overseas assignments. This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries.
The announcement is important as the UK is the second-largest export market for $283 billion Indian IT industry, and contributes 17 per cent to its export basket.
India's services exports to the UK stood at $21.6 billion in 2024, while imports were $13.7 billion.
[Press Trust of India]
