Good news for Indian workers as India, UK sign new pact on social security, 75,000 Indian workers will get…

Around 75,000 Indian workers are likely to benefit from the move as India, UK sign new pact on social security.

New Delhi: In a significant good news for around 75,000 Indian workers, India and the UK have inked an agreement aimed at eliminating double payments on social security contributions by employees on short-term tenure of up to three years. Likely to benefit 75,000 Indian workers, the India-UK pact will support mobility and continued social security coverage of the employees on short-term overseas assignments. Here are all the details you need to know about the India-UK pact to end double social security contributions.

What’s in the India-UK social security pact?

Seeking to avoid double social security contributions for employees of both countries on temporary assignments in each other’s territories for periods of up to 36 months, the pact on social security was signed by Foreign Secretary Vikram Misri and British High Commissioner Lindy Cameron.

“This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries,” the MEA noted.

IT majors like Tata Consultancy Services (TCS) and Infosys operating in the UK are expected to benefit from the pact as they will not require to make social security contributions for up to three years for employees they move from India to support their operations.

Add India.com as a Preferred Source

Who are the Indian workers getting the benefits?

Around 75,000 Indian workers are likely to benefit from the move. At the time of signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) in July last year, both sides had committed to conclude the agreement on social security.

The social security pact forms part of India’s trade deal with the UK and shall come into effect together with CETA, planned for implementation during the first half of the current year, according to the MEA.

“The signed agreement will be hosted on the website of the Ministry of External Affairs and the website of the Employees’ Provident Fund Organisation for the information of the stakeholders so that they can secure Certificates of Coverage to avoid making double social security contributions,” the ministry said.

(With inputs from PTI)