HighLights
  1. Indian workers in UK exempt from dual social security contributions.
  2. Agreement benefits 75,000+ professionals and over 900 companies.
  3. Exemption period for contributions extended from three to five years.

The Comprehensive Economic and Trade Agreement (CETA), signed between India and the United Kingdom, came into effect on Wednesday. This marks a new phase in the economic partnership between the two countries. Interestingly, it is not just the trade agreement that has come into effect as a major pact on Social Security has also entered into force. This pact is expected to significantly benefit Indian professionals working in the UK.

Agreement On Social Security

According to a PIB release, India and the UK have signed a landmark agreement on Social Security. Under this pact, Indian workers and employers sent to the UK for temporary assignments will not have to make social security contributions in both countries. The workers can continue contributing only to India’s social security system instead of paying contributions in both countries. Also, the exemption period has been extended from the earlier three years to five years.

How Will Indian Workers Benefit?

The move is expected to provide greater financial relief and flexibility to Indian professionals working in the UK. According to an official statement, the agreement is expected to benefit more than 75,000 Indian professionals and over 900 companies. It will lower financial burden as workers and their employers can now save money that would otherwise go towards duplicate contributions.

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The agreement will strengthen cooperation between India and the UK in areas such as technology, professional services and other skill-based sectors. Professionals will also be able to take up overseas assignments with greater ease. Moreover, the employees will continue to receive social security protection while working abroad temporarily.

“More than 75,000 Indian professionals and over 900 companies are expected to benefit. The Agreement will support mobility and continued social security coverage of the employees on temporary overseas assignments. This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries,” a statement from the Ministry of Commerce & Industry noted.

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PM Modi Hails Agreements

Prime Minister Narendra Modi also described the two agreements as a significant milestone in the India-UK partnership. He stated that they would deepen economic cooperation and create new opportunities for people and businesses in both countries. PM Modi wrote on X, “The social security agreement will provide invaluable support to Indian professionals working temporarily in the UK and strengthen the competitiveness of Indian enterprises."

He added, "This moment reflects the trust between our democracies and our resolve to build a forward-looking partnership driven by trade, technology, investment and innovation. India and the UK will continue working together for shared prosperity.”

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