India–UK Trade Deal Delays Social Security Relief for Indian Professionals in the UK
Despite headlines touting payroll savings for Indian professionals abroad, the newly signed UK–India Comprehensive Economic and Trade Agreement (CETA) does not immediately exempt Indian workers from UK social security contributions.
Instead, both countries have merely agreed to negotiate such a framework in the future--a move that defers concrete relief and raises implementation concerns.
“India commits to commence negotiations with the aim of concluding a convention that would provide for exemption from Class 1 contributions…”
(India Side Letter on Double Contributions Convention, 24 July 2025)
However, the agreement does not guarantee a timeline for concluding this convention, nor does it embed the exemption into the CETA treaty text itself.
“UK commits to negotiate in good faith with a view to concluding a Double Contributions Convention with India…”
(UK Side Letter on Double Contributions Convention)
Until such a convention is signed and ratified:
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Indian companies must continue paying National Insurance contributions for their deployed professionals in the UK.
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Indian workers will not see the take-home pay improvement highlighted in government press releases.
This delay undercuts one of the most prominently advertised benefits of the agreement for India’s IT, consulting, and mobility-intensive service sectors.
India has existing bilateral social security agreements with multiple countries, including Germany, France, and the Netherlands, but none yet with the UK.
The delay in finalizing such an arrangement means Indian IT firms, a major contributor to bilateral services trade, will continue to face double social security taxation, raising total compensation costs.
Source: India & UK Side Letters on Double Contributions Convention (24 July 2025)
A future negotiation is agreed, but not yet concluded or operational