India and the UK on 6 May 2025 concluded a landmark free trade agreement, marking a significant milestone in bilateral economic relations. Among its many provisions, the double contribution convention (DCC) is one of the most impactful for Indian professionals and businesses, as it addresses the long-standing issue of dual social security contributions.
Currently, Indian professionals working temporarily in the UK are required to contribute to both the Indian and UK social security systems. This double burden increased the cost of overseas assignments and reduced Indian firms’ competitiveness in the UK market.
The DCC would be a bilateral arrangement that exempts Indian professionals and their employers from paying social security contributions in the UK for short-term assignments of up to three years. This provision would help employers in sectors such as IT, finance, education, and healthcare, and promote talent mobility to the UK. Once the DCC is in place, Indian companies could deploy talent to the UK without incurring additional social security costs, making them more cost-effective in global operations.
The UK and India will work together to finalise the legal text of the free trade agreement and produce a usable and legally binding treaty. The process will end with the signing of the completed treaty text. The DCC will enter into force alongside the trade agreement.
This provision aligns with India’s broader vision of Viksit Bharat 2047, aiming to transform India into a developed nation by the centenary of its independence. It also supports the UK’s post-Brexit strategy of building strong bilateral trade ties outside the EU.
While the DCC is a major win, its implementation will require:
For more information on the India–UK free trade agreement or the DCC, please consult your regular BDO contact or the author of this article.
Deepashree Shetty
BDO in India
Currently, Indian professionals working temporarily in the UK are required to contribute to both the Indian and UK social security systems. This double burden increased the cost of overseas assignments and reduced Indian firms’ competitiveness in the UK market.
The DCC would be a bilateral arrangement that exempts Indian professionals and their employers from paying social security contributions in the UK for short-term assignments of up to three years. This provision would help employers in sectors such as IT, finance, education, and healthcare, and promote talent mobility to the UK. Once the DCC is in place, Indian companies could deploy talent to the UK without incurring additional social security costs, making them more cost-effective in global operations.
The UK and India will work together to finalise the legal text of the free trade agreement and produce a usable and legally binding treaty. The process will end with the signing of the completed treaty text. The DCC will enter into force alongside the trade agreement.
This provision aligns with India’s broader vision of Viksit Bharat 2047, aiming to transform India into a developed nation by the centenary of its independence. It also supports the UK’s post-Brexit strategy of building strong bilateral trade ties outside the EU.
While the DCC is a major win, its implementation will require:
- Clear administrative guidelines for eligibility and documentation
- Awareness campaigns aimed at businesses and professionals
- Coordination between the Indian and UK social security authorities to ensure smooth execution
- Update global mobility policies to reflect the new provisions of the DCC once they are implemented
- Plan and track assignments from India to the UK
- Identify eligible employees
- Maintain appropriate documentation, such as certificates of coverage, and other compliance procedures
Conclusion
The India–UK FTA, and particularly the DCC, represents a forward-looking approach to trade and mobility. By removing a key financial barrier, it paves the way for deeper economic integration and enhanced people-to-people ties between the two nations.For more information on the India–UK free trade agreement or the DCC, please consult your regular BDO contact or the author of this article.
Deepashree Shetty
BDO in India