New India-UK pact eases social security payments
New Delhi, Feb. 11 -- India and the UK on Tuesday signed an agreement aimed at eliminating double social security payments by employees on short-term assignments in both countries, thereby facilitating the cross-border movement of professionals.
The Agreement on Social Security relating to Social Security Contributions, a key component of the India-UK free trade pact finalised in July 2025, was signed by foreign secretary Vikram Misri and British high commissioner Lindy Cameron in New Delhi.
The agreement will result in the avoidance of double social security contributions for nationals of both countries on temporary assignments in each other's territories for up to 36 months, the external affairs ministry said. It will also support mobility and continued social security coverage of employees on short-term overseas assignments.
"This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries," the ministry said in a readout.
The agreement is part of India's trade deal with the UK and will come into effect together with the Comprehensive Economic and Trade Agreement, planned for implementation in the first half of 2026.
The pact is expected to boost India's services sector, especially finance and technology, by exempting employers of Indian workers from paying social security contributions in the UK for three years. The government had earlier said the agreement is expected to benefit around 75,000 workers and more than 900 companies, resulting in savings of more than Rs.4,000 crore.
Double social security contributions by professionals and employees in their home country and the nations where they are temporarily deputed have been a long-standing concern for Indian businesses and skilled workers. India has concluded similar bilateral social security agreements with other countries to protect the interests of Indian professionals and skilled workers working abroad for short durations....
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