In a major win for Indian professionals and businesses operating in the United Kingdom, India and the UK have officially concluded negotiations on a landmark social security agreement—the Double Contribution Convention. Announced alongside the long-awaited India-UK Free Trade Agreement on May 6, 2025, this pact puts an end to a persistent financial hurdle faced by Indian companies and their skilled workers on foreign assignments.
For years, Indian professionals sent to the UK on short-term contracts have faced an unavoidable economic strain. Despite their limited stay, they were obligated to contribute to Britain’s National Insurance (NI) system—a deduction that amounted to roughly £500 per employee annually, as per figures from 2021. This was in addition to regular taxes and mandatory health surcharges toward the NHS. The real blow came from the fact that these professionals, returning to India after completing their assignments, were unable to claim any benefits from those NI contributions.
Now, with the Double Contribution Convention in place, Indian employees posted to the UK for limited durations will no longer be forced to pay into the British social security system. Instead, they and their employers can continue contributing to India’s own Employees’ Provident Fund Organisation (EPFO), just as they would if working domestically.
This move aligns the UK with other progressive economies such as Germany, France, Switzerland, the Netherlands, South Korea, Denmark, and Belgium—nations that have already signed similar social security agreements with India. The primary aim across these treaties is simple but powerful: eliminate the burden of dual contributions while protecting the financial interests of temporary foreign workers.
For Indian businesses in the UK, this change brings greater flexibility and cost-efficiency in deploying talent for project-based work. For professionals, it guarantees continuity in social security coverage without having to navigate complex foreign systems that ultimately yield no returns.
Beyond economics, the agreement also signals the deepening trust and bilateral collaboration between India and the UK, reflecting a shared vision for seamless trade, talent mobility, and equitable partnerships.
With this long-standing demand finally addressed, Indian enterprises abroad can breathe easier—and skilled professionals can serve global assignments without compromising on their hard-earned social security savings.
