India-U.K. social security pact revised, exemption extended to five years

India and the United Kingdom have revised their Agreement on Social Security, also known as the Double Contribution Convention (DCC), which will come into force on July 15. The revision extends the exemption period for social security payments from three to five years, potentially saving Indian companies and workers about $500 million, according to sources in the Ministry of Commerce and Industry.

The original agreement, signed in July 2025, exempted U.K. companies from paying social security for temporary Indian workers for up to three years, provided that social security contributions were made in India during that period. The revised agreement increases this exemption to five years, covering an estimated 90-95% of the temporary Indian workers in the U.K.

“We have more than 75,000 workers from India working in the U.K. and there are more than 900 Indian companies that are at present operational in the U.K.,” an official said on condition of anonymity, as the matter is confidential until July 15. “On the basis of their minimum salary levels, the savings to Indian companies in the U.K. employing temporary Indian workers will come to more than half a billion dollars.”

The revision addresses a long-standing issue: without the DCC, companies employing Indian workers had to pay social security in both India and the U.K. However, U.K. social security benefits accrue only after 10 consecutive years of contribution, meaning most temporary Indian workers could not benefit from the U.K. system while paying double contributions. “Now, with the exemption increased from three to five years, this covers about 90-95% of the temporary Indian workers in the U.K.,” the official added.

To avail of the exemption, companies must obtain a certificate from the Indian government confirming that social security contributions are being made in India, and submit it to the U.K. authorities.

The revised DCC will take effect simultaneously with the Comprehensive Economic and Trade Agreement (CETA) between India and the U.K., which was also signed in July 2025. The CETA was originally slated for implementation by early May 2026, but was temporarily stalled due to a new U.K. regulation on steel import tariffs that had not been part of the CETA negotiations.

“If you look at this steel measure in detail, 85% of our steel exports to the U.K. was out of this,” a second official explained. “Out of about $890 million of steel export that we do to the U.K., only $137 million was getting affected.” India and the U.K. reached a deal on the steel tariffs hours before the announcement, ensuring that India’s market access is not lost. “We are happy that our concerns on steel have been addressed,” the official said, without disclosing specific concessions, as the matter remains sensitive for the U.K.

The officials declined to provide further details on the tariff deal, noting that the U.K. is still negotiating similar terms with other countries.