After negotiations that began in 2022, the United Kingdom and the Republic of India concluded a deal on 6 May 2025, regarding a Double Contribution Convention (“DCC”).
The DCC was negotiated as part of broader discussions concerning a Free Trade Agreement (“FTA”). When in force, it will operate on similar principles to other reciprocal social security agreements which the U.K. and India have with other countries.
The DCC is designed to prevent historic double payments of social security contributions by workers who are temporarily posted between the U.K. and India. Both parties have confirmed that when international assignments last no more than three years, workers will only be required to contribute to their home country’s social security system. This arrangement is reciprocal, benefitting both individuals travelling on assignment from India to the U.K. and vice-versa, as well as their employers.
This agreement is highly welcome, given the trading history between the two countries, the substantial number of Indian workers assigned to the U.K. annually, and India's position as the second-largest foreign direct investor in the U.K., with 971 Indian-owned companies primarily in the IT sector.1
At the time of writing, the full text of the U.K.-India DCC has not been published. However, the U.K. government has published a summary of the FTA, which includes an overview of the DCC2.
It is understood that the agreement will operate on similar principles to the U.K.’s other Social Security Agreements (SSA) with the EU and countries such as Switzerland, Norway, Canada, Japan, Chile, and South Korea. As a more limited kind of SSA, the DCC will not affect individuals’ rights to access benefits from the country in which they pay social security contributions or the requirement to pay the U.K. immigration health surcharge.
Pending confirmation of the specific provisions of the DCC, there remain several outstanding questions, including:
The DCC is set to come into force concurrently with the broader FTA. The U.K. government anticipates that the ratification process will take approximately 12 months, suggesting that the DCC could come into effect by mid-2026, following the completion of approval procedures in both countries.
The DCC is expected to enhance cross-border business and promote the mobility of workers between the U.K. and India by eliminating the double taxation of the same earnings for social security purposes.
Employers and employees with concerns or questions regarding eligibility, conditions, and the practical steps required to benefit from the DCC may wish to reach out to their usual social security and global mobility professional or a member of the GMS team within KPMG LLP in the U.K. (see the Contacts section).
1 From the British High Commission in New Delhi, "World news story: UK Prime Minister hosts Indian business leaders at Downing Street" (18 December 2024).
2 See Policy paper: UK-India trade deal: conclusion summary (published 6 May 2025), item 5, Double Contributions Convention (DCC).
The information contained in this newsletter was submitted by the KPMG International member firm in the United Kingdom.
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