UK-India social security agreement: coming into effect from 15 July 2026
Following on from our previous insight – UK-India social security agreement: alleviating double costs for temporary cross-border worker assignments – the UK and the Republic of India announced on the 17 June 2026 that the UK – India social security agreement will take effect from 15 July 2026.
A reminder of the issues
In February this year, the UK and the Republic of India formally signed a Double Contributions Convention (DCC) which was drafted alongside the wider UK / India Comprehensive and Economic Trade Agreement (CETA).
The DCC is a type of social security agreement that aims to alleviate double social security contributions.
It is particularly relevant for employees that are sent to work cross-border between the UK and India on a temporary basis (‘detached workers’).
Historically, in the absence of any formal social security agreement, employee and employer social security contributions would become due in the ‘host’ country after the initial 52 weeks of the assignment (known as the 52-week exemption) and therefore double contributions could arise if contributions continued to be made in the ‘home’ country.
Practical considerations for detached workers
Broadly, a detached worker is an employee who:
- is employed in their home country; and
- is sent by their employer to work temporarily in the other country.
Once the DCC comes into effect on 15 July 2026, detached workers will be exempt from contributing into their host country’s social security scheme for up to 60 months. This is a significant extension to the previous 52-week exemption.
Instead, they can continue to contribute to their home country social security scheme, maintaining their home country’s social security contribution record.
Calculating social security contributions
For the purposes of calculating the level of social security contributions that are due to be withheld, these are calculated on the employees’ earnings or ‘wages’, which is determined by reference to UK legislation and as defined in India’s Code on Social Security.
Certificates of coverage
It will be necessary for the employee to obtain a certificate of coverage to demonstrate their entitlement to remain within their home country social security scheme (and out of their host country’s scheme).
This can be an administratively burdensome process, particularly with large numbers of detached workers, so it is advisable for employers to engage with a provider that can support the application process and provide bespoke advice. Moore Kingston Smith can provide this support in the UK and in India, via our Moore Global network.
Waiting periods
It is not uncommon for a detached worker to undertake several successive postings to the same host country, and a new certificate of coverage will be required for each period of detachment.
In these instances, the DCC outlines a minimum ‘waiting period’ between periods of detachment.
A period of at least six months must elapse between the end of one posting and the start of a new posting.
However, if the original posting was for less than six months, the ‘waiting period’ must be at least the same length of time as the previous posting (so if the original posting was for three months, the waiting period would also be three months).
Transitional situations
The DCC includes specific transitional rules in respect of those employees who are already working temporarily in the UK or India.
These employees will cease to be regarded as ‘detached workers’ for social security purposes (even if they qualified as such under the previous 52-week exemption framework).
Employees and employers will therefore be liable to social security contributions in the ‘host’ country from 15 July 2026 and they will no longer be paid into their home country social security scheme.
Because the transitional rules mean ‘in situ’ detached workers will automatically fall within the scope of the new agreement, it will also not be possible to make voluntary contributions to their home country.
It is important therefore for employers to budget for these costs and to prepare relevant communications for their ‘in situ’ detached workers outlining what these changes will mean for them.
See also our previous insight on social security apportionment – HMRC clarifies the treatment of National Insurance contributions for Internationally Mobile Employees.
Who is not included
It is worth bearing in mind that the DCC does not apply in the following scenarios:
- new hires recruited directly in the host country;
- employees who localise as an employee in either country;
- multi-state workers;
- self-employed workers;
And for government employees, mariners, and aircrew there are separate, specific coordination provisions that apply in these cases, which should be considered on a case-by-case basis.
What can employers do now to prepare for these changes?
With less than a month before the DCC comes into effect, it is imperative that you review your current cross-border workforce and implement a workable re-structuring to ensure the longer-term benefits of the new social security agreement can offset the more immediate costs.
This should include:
- reviewing current and planned assignments;
- re-assessing cost modelling and cost projections under the extended 60-month framework and budget accordingly;
- calculation of projected costs for ‘in situ’ employees who will be immediately impacted by the transitional provisions;
- updating global mobility and payroll policies – in particular, how the immediate payment of host country contributions for those ‘in situ’ may conflict with planned contributions in their home country and how employees can be protected from this shift;
- building and / or refining a process for obtaining and tracking certificates of coverage – proactive engagement with a provider that can support the application process and provide bespoke advice is strongly recommended;
- liaise with your payroll provider to ensure they are aware of these changes and are prepared to support you with queries and implementation.
Help from the experts
Businesses with employees temporarily working between the UK and India must prepare for the changes coming into effect on 15 July 2026 – not only to tackle the short-term cost; administrative; and compliance challenges, but to ensure they are well-prepared for the expected longer-term benefits of the new UK – India DCC.
Now is the time to act, so please contact our global mobility specialists today.
