Archive · 25 Jul 2025
India-UK Deal: Indian Workers to Save on Social Security Taxes
India and the UK made a deal to help Indian workers.
This means if you're an Indian worker in the UK for a short time, you don't have to pay extra taxes in the UK, saving you money.
Around 75,000 workers will benefit.
Instead of paying UK taxes, the money goes into a special fund in India, which helps them save for the future.
This also helps the UK because the deal is expected to boost their economy and create more jobs.
The agreement is part of a bigger trade deal between the two countries, making it easier to work and do business.
India and UK signed a Double Contribution Convention (DCC) as part of the Comprehensive Economic and Trade Agreement (CETA).
The DCC exempts Indian workers on short-term visas in the UK from paying UK National Insurance Contributions (NIC) for up to three years.
Around 75,000 Indian workers and 900 British employers are expected to benefit from the agreement.
Indian IT professionals earning around £50,000 monthly will contribute to the EPFO instead of UK NIC, saving them money.
The UK anticipates economic gains, projecting a £4.8 billion increase to its GDP and a £2.2 billion boost to UK wages.
- Who
- Indian workers on short-term visas in the UK and their employers.
- What
- Double Contribution Convention (DCC) signed as part of the UK-India trade agreement.
- When
- Took effect alongside the signing of the UK-India Comprehensive Economic and Trade Agreement (CETA).
- Where
- United Kingdom and India.
- Why
- To prevent dual social security contributions and boost economic ties.
Benefits for India
Benefits for the UK
Simplification of Contributions
Benefits for India
Streamlines social security contributions
Benefits for the UK
NA
- Agreement Type
- Double Contribution Convention (DCC)
- Part of
- UK-India Comprehensive Economic and Trade Agreement (CETA)
- Beneficiaries
- 75,000 Indian workers, 900 British employers
- Exemption
- UK National Insurance Contributions (NIC) for up to three years
- Potential Savings
- Rs 30-40 lakh per individual
- UK GDP increase
- £4.8 billion annually
- Indian-owned Companies in UK
- 1,197