UK and India enter into a reciprocal double contributions convention

The DCC was signed on 10 February 2026. It will come into force together with the CETA, which is currently expected to be implemented during the first half of 2026.

What does the DCC do?

Once the DCC is in force, and in a similar way to a number of agreements the UK has with other countries (for example the USA, Japan and Israel):

• Employees moving between the UK and India for work, and their employers, should only be liable to pay social security / national insurance contributions (Contributions) in one country at a time.
• In most instances, Contributions will be payable only in the country where the work is carried out.
• Where employees are sent by their employer (or choose, with the agreement of their employer) to work in the UK or India (as the case may be), provided that the duration of work in the other country does not exceed36 months, Contributions should only be payable in the home country.

Prior to the DCC coming into force:

• An employee sent by their Indian employer to work in the UK would usually become subject to UK national insurance contributions after 52 weeks - and if Indian social security also continued to be payable then there would be double Contributions payable.
• An employee sent by their UK employer to work in India would usually remain subject to UK national insurance contributions for 52 weeks - and if Indian social security also became payable then there would be double Contributions payable.

Why does it matter?

The DCC will be welcomed by businesses in the UK and India. In particular, it will give such businesses greater freedom to have their employees working from the other jurisdiction, for temporary periods, without triggering liability to local Contributions. The elimination of double liabilities to Contributions will also remove potential barriers to longer term cross-border working arrangements between the UK and India.

Businesses will still need to be cognisant of any administrative requirements to achieve the desired treatment under the DCC. For example, in the UK, HM Revenue and Customs will require a certificate of continuing liability, from the Indian tax authorities, in respect of employees temporarily working in the UK in circumstances where UK national insurance contributions are intended not to arise.