India-UK trade deal: Double contribution pact to smoothen ops for IT cos

So far, Indian professionals working for a limited period in UK contributed to the country's social security funds, but they would not get benefits as they would return once the project is completed

India and the UK have secured an agreement on the Double Contribution Convention alongside the free trade agreement, which many believe will help smooth the operations of Indian information technology (IT) services companies.

 

“It will exempt Indian workers and their employers from social security contributions in the UK for up to three years, significantly improving take-home pay and reducing costs for Indian companies,” the government said on Thursday.

 

Commerce Minister Piyush Goyal said in a post: “The three-year exemption from social security contributions in the UK as part of the Double Contribution Convention is a significant breakthrough for Indian workers and their employers”. The Indian IT services industry has a huge presence in the UK. The region is the second-largest in terms of revenue, along with Europe. Indian IT services players also send thousands of skilled Indian employees on projects to the UK.  

   

So far, Indian professionals working for a limited period in the UK contributed to the country’s social security funds, but they would not get benefits as they would return once the project is completed.

 

Tata Consultancy Services (TCS), India’s largest IT services player, has roughly 24,000 employees in the UK. However, of these, how many are from India and on temporary work could not be ascertained. According to industry experts, about 11,000 Indian employees could be sent onsite.