Prime Minister Narendra Modi during a bilateral meeting with the UK Prime Minister Kir Stmper on the occasion of the G20 summit at Rio de Janeiro. File | Photo Credit: Reuters
India and the UK on Tuesday (May 6, 2025) announced the conclusion of the conversation for a social security treaty, which will help avoid double contribution to the Social Security Fund by Indian professionals working for a limited period in Britain.
The double contribution was with the announcement of the conference agreement Free trade agreement between the two countries,
Currently, Indian professionals working for a limited period in the UK contribute to their social security fund, but they are not able to return after the projects are completed.
Explained India’s proposed free trade agreement with the UK
This was a long demand for Indian businesses working in the UK, which was cutting the additional cost burden associated with bringing skilled Indian professionals on a short -term basis.
Compulsory National Insurance (NI) contribution of skilled Indian professionals in UK on temporary visa, according to 2021 data, has an additional cost burden of about 500 British pounds per employee per year on all other taxes and health surcharge paid by National Health Services (NHS).
Also read India is committed to free trade agreement with the UK, Modi says
India has social security agreements with countries such as Belgium, Germany, Switzerland, France, Denmark, South Korea and Netherlands.
Thus, Indians going abroad for employment do not need to contribute to social security schemes in these countries.
He and his employers can continue with the social security schemes run by the Provident Fund Organization (EPFO) of employees in India, serving abroad.
The main features of the India-UK Free Trade Agreement
99% Indian exports to benefit from zero duty in the UK market.
Indian import duty will be reduced, 90% of tariff lines will lock the cuts, 85% of which will be completely tariff-free within a decade.
Reduce tariff for India
Goods with low import duties for Indian consumers: cosmetics, aerospace, lambs, medical equipment, salmon, electric machinery, soft drinks, chocolate and biscuits
Products with cheap prices for British shopkeepers: food products including clothes, shoes, and frozen shrimp
Automotive tariff will go from 100% to 10% under a quota
Three years discount from social security payment for Indian employees working in UK
Export opportunities for labor, sea products, leather, shoes, sports items and toys, gems and jewelery, engineering goods, auto parts and engines, and organic chemicals, export opportunities
Published – May 06, 2025 07:21 pm IST
