India, UK Sign Social Security Agreement for Temporary Employees
Kartavya Desk Staff
Source: News on Air
Subject: Economy
Context: India and the United Kingdom have signed a Social Security Agreement (SSA) to prevent double social security contributions for employees on short-term assignments.
About India, UK Sign Social Security Agreement for Temporary Employees:
What is the Agreement?
• India and the United Kingdom have signed a reciprocal Social Security Agreement, also referred to as a Double Contributions Convention (DCC), to eliminate the burden of dual social security payments for employees temporarily working in each other’s territory.
• The agreement allows employees on assignments of up to 36 months to continue contributing to their home country’s social security system, thereby avoiding double payments.
Nations Involved: India and United Kingdom
• Prevents employees and employers from paying contributions in both countries simultaneously.
• Supports short-term overseas assignments in sectors such as IT, finance, consulting, and engineering.
• Forms part of commitments made under the Comprehensive Economic and Trade Agreement signed in July 2025.
• Reduces cost burdens on firms sending skilled professionals abroad.
Key Features:
• Coverage for Temporary Assignments (Up to 36 Months): Employees remain covered under their home country’s social security system during temporary postings.
• Certificate of Coverage (CoC) Mechanism: Workers can obtain a CoC through the Employees’ Provident Fund Organisation to certify exemption from host-country contributions.
• Reciprocal Application: Applies equally to Indian employees in the UK and UK employees in India.
• Prevention of Social Security Record Fragmentation: Ensures continuity in pension and benefit records.
• Implementation Linked to Trade Deal: The agreement will enter into force alongside the India–UK CETA, expected in the first half of the year.
Significance:
• India’s strength in IT and professional services benefits from smoother mobility of skilled workers.
• Supports the broader India–UK trade architecture, projected to significantly enhance bilateral trade.
• Avoids duplicative employer contributions, improving global competitiveness.