10 months ago
India and UK Finalizing Social Security Agreement
Imagine you work for a company that has offices in both India and the UK.
Right now, you might have to pay social security (like a retirement fund or health contributions) in both countries, which can be costly.
India and the UK are working on a new agreement, called the Double Contribution Convention (DCC), to fix this.
This agreement means you'll only have to pay social security in one country at a time, even if you are sent to work in the other country for up to three years.
This makes it easier and cheaper for people to work across borders.
They are also working on a bigger trade deal called CETA, which has been signed but needs approval from both governments to become official.
The UK's approval might take a bit longer because their parliament needs to vote on it.
India is also in the final stages of trade talks with the European Union, New Zealand, and is making progress with Peru and Chile, showing a strong effort to build trade relationships globally.
India and the UK are in the process of finalizing a Double Contribution Convention (DCC) to simplify social security payments for professionals.
The DCC will ensure that individuals and their employers only pay social security contributions in one country at a time, for up to three years.
This agreement is part of the broader Comprehensive Economic and Trade Agreement (CETA) between India and the UK, which has been signed but requires ratification.
Trade negotiations with the European Union, New Zealand, Peru, and Chile are also progressing, with some aiming for year-end conclusions.
Discussions are ongoing to review the Asean-India Trade in Goods Agreement (AITIGA).
- Who
- Indian officials, UK officials, Commerce Secretary Rajesh Agrawal, New Zealand’s Minister for Trade Todd McClay
- What
- Discussions on finalizing the Double Contribution Convention (DCC) and operationalizing the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, alongside updates on trade negotiations with the EU, New Zealand, Peru, Chile, and the review of the Asean-India Trade in Goods Agreement (AITIGA).
- Where
- UK (for DCC and CETA discussions), India, European Union, New Zealand, Peru, Chile, ASEAN member states
- When
- Discussions on DCC and CETA are ongoing, with CETA signed in July and ratification expected to take time. FTA negotiations with the EU aim for year-end conclusion. New Zealand FTA is nearing completion. The fourth round of talks with Chile is scheduled for December.
- Why
- To facilitate easier movement and reduce social security burdens for professionals and employers between India and the UK, and to advance trade agreements with various international partners.
United Kingdom
India
Ratification of CETA
United Kingdom
The ratification process in the UK is expected to take longer due to the requirement of parliamentary approval.
India
India aims to operationalize CETA soon after signing, with the DCC expected to be launched alongside it.
Social Security Contributions for Professionals
United Kingdom
Professionals moving between the UK and India will be required to pay social security contributions in only one country at a time, with temporary postings up to three years allowed.
India
Indian professionals and their employers will be exempt from social security payments in the UK for up to three years under the Double Contribution Convention (DCC).
Key facts
- Agreement Under Discussion
- Double Contribution Convention (DCC) and Comprehensive Economic and Trade Agreement (CETA)
- DCC Benefit for Professionals
- Exemption from social security payments in the host country for up to three years
- CETA Status
- Signed in July, awaiting ratification by both countries
- DCC Negotiation Status
- Launched, with hopes for completion soon alongside CETA
- EU FTA Negotiation Status
- Final phase, aiming for conclusion by year-end
- New Zealand FTA Negotiation Status
- Nearing completion, substantive progress made
- Peru Trade Pact Negotiation Status
- Progressing
- Chile Trade Pact Negotiation Status
- Advancing, fourth round scheduled for December in India
Timeline
India, EU push for trade deal by 2025.
Talks intensify; next round set for October.
Ministers met to resolve tariff, market access issues.
Progress made on complex trade points.
Separately, India eyes EAEU trade pact, $100B goal.
Quotes
Rajesh Agrawal
Commerce Secretary
“So those negotiations (on DCC) have also been launched and we hope to complete them soon so that both (CETA and DCC) can be launched together”
financialexpress.com
“We hope that we will achieve closure (of the talks) in the shortest possible time”
financialexpress.com
Sources
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India-UK finalising social security agreement
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