- within Employment and HR and Accounting and Audit topic(s)
- with Senior Company Executives, HR and Inhouse Counsel
On 10 February 2026, India and the UK signed a Social Security Agreement (SSA), which avoids double social security contributions for employees temporarily working on short-term assignments in each other's countries, thereby facilitating the cross-border movement of professionals.
Key features
- The agreement allows employees on assignments of up to 36 months to continue contributing only to their home country's social security system.
- Employees can obtain a Certificate of Coverage (CoC) through the Employees' Provident Fund Organisation to certify exemption from host-country contributions.
- This will provide support for short-term overseas assignments in sectors such as IT, finance, consulting, and engineering, which will ultimately reduce cost on firms in sending skilled professionals abroad.
- This is a reciprocal arrangement, which means it applies equally to Indian employees in the UK and UK employees in India
- This agreement forms an integral part of the commitments made under the Comprehensive Economic and Trade Agreement (CETA) signed in July 2025
Implementation
The Social Security Agreement entered between India and the UK is not in force currently. The agreement forms part of India's trade deal with the UK made under Comprehensive Economic and Trade Agreement (CETA) signed in July 2025 and is expected for implementation during the first half of 2026 calendar year. The signed agreement will be hosted on the website of Ministry of External Affairs and EPFO for information so that the stakeholders can secure Certificates of Coverage (CoC).
Our Comments
Double social security contributions by employees in their home
country and in the country where they are temporarily deputed have
been a long-standing concern for Indian business. The government
has mentioned that with this SSA is now expected to benefit around
75,000 employees and more than 900+ companies, resulting in the
savings of more than INR 40 billion.
The agreement will enhance India-UK partnerships in the service
sector, leveraging high skills and labour mobility. It will also
deepen economic engagement and strengthen bilateral trade and
investment flows between India and the UK.
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