Revised agreement linked to trade deal expected to boost mobility and reduce costs for Indian professionals in Britain
PRAVASISAMWAD.COM
Indian companies and professionals working in the United Kingdom are expected to benefit significantly from a revised India-UK social security agreement that will come into force on 15 July, alongside the implementation of the two countries’ Comprehensive Economic and Trade Agreement (CETA).
The new arrangement is designed to prevent Indian employees on temporary assignments in the UK from making social security contributions in both countries. Under the agreement, eligible workers and their employers will be exempt from paying UK social security contributions for up to five years, provided they continue contributing to India’s social security system.
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Government estimates suggest that the revised pact could generate annual savings of around £500 million (approximately $500 million-plus) for Indian firms and workers
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Nearly 75,000 Indian professionals currently working in the UK on intra-company transfers, along with more than 900 Indian businesses operating there, are expected to benefit
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Officials believe that between 90 and 95 per cent of these professionals will qualify for the exemption.
The agreement addresses a longstanding concern for Indian companies, particularly in the information technology and services sectors. Until now, workers and employers often had to contribute to the UK system despite many employees not remaining in the country long enough to qualify for benefits. The revised framework is expected to reduce operational costs and improve the competitiveness of Indian firms with overseas assignments.
The social security pact forms part of broader efforts by New Delhi and London to strengthen economic ties. The wider trade agreement is projected to increase bilateral trade and deepen cooperation in services, investment and workforce mobility.
