New Delhi, May 6 (PTI) India and the UK on Tuesday announced the conclusion of negotiations for a social security pact, which would help avoid double contribution to social security funds by Indian professionals working for a limited period in Britain.
The announcement of the Double Contribution Convention agreement was made along with the free trade agreement between the two countries.
Presently, Indian professionals working for a limited period in Britain contribute to their social security funds, but are not able to get their benefits as they return once the projects are complete.
It was a long-standing demand of Indian businesses operating in Britain to cut down on the additional cost burden associated with bringing in skilled Indian professionals on a short-term basis.
The compulsory National Insurance (NI) contributions of skilled Indian professionals in the UK on temporary visas remain an additional cost burden of about 500 British pounds per employee a year, over and above all other taxes and health surcharge paid towards the National Health Service (NHS), as per 2021 data.
India has social security agreements with countries like Belgium, Germany, Switzerland, France, Denmark, South Korea, and the Netherlands.
Thus, Indians going abroad for employment are not required to contribute towards social security schemes in these countries.
They and their employers can continue with social security schemes run by the Employees’ Provident Fund Organisation (EPFO) here in India while serving abroad. PTI RR CS RR SHW
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