UK-India social security agreement: alleviating double costs for temporary cross-border worker assignments
On 10 February 2026, the UK and the Republic of India formally signed a Double Contributions Convention (DCC) – a type of social security agreement aimed at preventing double social security contributions.
From a cost and administrative perspective, this is a significant development for employers that send employees to work cross-border between the UK and India on a temporary basis (‘detached workers’).
While this agreement will eliminate dual social security contributions, it also introduces new administrative requirements, meaning employers should start preparing early.
What issues currently arise for cross-border worker assignments?
For UK inbound assignments, generally no employee or employer national insurance contributions (NICs) are due for the initial 52 weeks of the UK assignment (known as the 52- week exception). Beyond 52 weeks, both employee and employer NIC would be due to HM Revenue and Customs (HMRC).
In some instances, a double contribution liability could arise where social security contributions in India (e.g. Provident Fund) continued during the UK assignment.
What does this new agreement mean for social security contributions?
The provisions of the agreement set out the country that the employee, and their employer, pays their contributions in. The agreement includes the general rule that an employee will normally only pay contributions in the country that they work in.
Under the agreement, there is an exception to this general rule. Temporary (detached) workers moving between the UK and India will be able to remain within their home country’s social security scheme where the ‘anticipated duration of such work does not exceed 36 months’.
The extended 36-month period should:
- Prevent double social security contributions – the agreement ensures that employees, and their employers, moving between the UK and India only have to pay social security contributions in one country at a time.
- Maintain continuity of home country benefit entitlement.
- Protect UK state pension contribution records for outbound assignees working in India.
- Provide greater certainty for employers managing international assignments.
Will there be any additional administration?
As with other similar social security agreements, a certificate of coverage will be required to demonstrate eligibility to continue to make home country contributions instead of host country contributions.
The specific process for such applications and whether a new streamlined, online application process will be implemented in response to this agreement remains to be seen.
The application processing time for countries with whom separate social security agreements are in place can take several weeks to complete, which can delay overseas appointments and lead to additional costs.
Who does the social security agreement apply to?
Temporary (detached) workers – these are employees who:
- are employed in their home country; and
- are sent by their employer to work temporarily in the other country.
It also applies to employees temporarily working remotely in either country with the agreement of their employer.
The agreement also contains specific coordination provisions for other types of employees, including government employees, mariners and aircrew.
It does not automatically apply to:
- new hires recruited directly in the host country;
- assignments exceeding 36 months – whether periods of home country coverage can continue beyond 36 months under the ‘exceptions’ clause of the agreement in the interests of certain individuals remains to be seen;
- employees who localise as an employee in either country;
- multi-state workers;
- self-employed workers.
Are there any transitional rules?
The agreement does not include any transitional provisions, and clarification is needed on whether certificates of coverage can be issued for employees already on assignment in either country.
When is the social security agreement coming into force?
Whilst the agreement is yet to come into force (it is expected to come into force around the summer of 2026 following ratification procedures), it represents a commitment by both governments to simplify and encourage cross-border movement of employees.
What can employers do now to prepare for these changes?
Employers that manage cross-border movement of employees between India and the UK, must now prepare for these changes come into force. This includes:
- review current and planned assignments;
- re-assess cost modelling under the 36-month framework;
- update global mobility and payroll policies;
- prepare processes for obtaining and tracking certificates of coverage;
- monitor confirmation of the formal effective date;
- proactively engage with a provider that can support with the application process for certificate of coverage and provide bespoke advice.
Help from the experts
Businesses with employees temporarily working between the UK and India should start preparing now for the upcoming changes.
Now is the time to act, so please contact our global mobility specialists today.
