New Delhi, Feb 10 (PTI) India and the UK on Tuesday inked an agreement that is aimed at eliminating double payments on social security contributions by employees on short-term tenure of up to three years.
The agreement will support mobility and continued social security coverage of the employees on short-term overseas assignments, the Ministry of External Affairs (MEA) said.
The pact on social security was signed by Foreign Secretary Vikram Misri and British High Commissioner Lindy Cameron.
It seeks to avoid double social security contributions for employees of both countries on temporary assignments in each other’s territories for periods of up to 36 months, the MEA said.
“This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries,” it noted.
IT majors like Tata Consultancy Services (TCS) and Infosys operating in the UK are expected to benefit from the pact as they will not require to make social security contributions for up to three years for employees they move from India to support their operations.
Around 75,000 Indian workers are likely to benefit from the move.
At the time of signing of the India-UK Comprehensive Economic and Trade Agreement (CETA) in July last year, both sides had committed to conclude the agreement on social security.
The social security pact forms part of India’s trade deal with the UK and shall come into effect together with CETA, planned for implementation during the first half of the current year, according to the MEA.
“The signed agreement will be hosted on the website of the Ministry of External Affairs and the website of the Employees’ Provident Fund Organisation for the information of the stakeholders so that they can secure Certificates of Coverage to avoid making double social security contributions,” the ministry said. PTI MPB KVK KVK
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