Indian IT professionals working in the United Kingdom on temporary visas have received a major boost with the new India-UK Free Trade Agreement (FTA), which includes a landmark social security pact. Under the Double Contribution Convention, Indian workers and their employers will be exempt from paying the UK’s National Insurance (NI) contributions for a period of three years-offering significant financial relief and making Indian service providers far more competitive in the British market.
Previously, Indian workers on short-term assignments in the UK were required to pay compulsory NI contributions-about £500 per employee per year-on top of all other taxes and the National Health Service (NHS) surcharge. These payments, designed to fund pensions, healthcare, and welfare, were often not recoverable since most Indian professionals returned home before qualifying for UK benefits.
With the new agreement:
Indian workers and their employers are exempt from UK social security contributions for three years.This exemption is expected to save employees around 20% of their salary, and benefit more than 60,000 IT sector employees alone. Indian companies will collectively save over ₹4,000 crore, boosting their competitiveness and ability to deploy talent in the UK market.
Both workers and companies avoid double payments-contributing only to India’s Employees’ Provident Fund Organisation (EPFO) while on assignment in the UK. The move is expected to create new openings for Indian professionals in the UK, especially in IT, digital services, and emerging tech sectors. Indian businesses can now compete more effectively with global peers, as similar agreements exist with countries like Germany, France, and the Netherlands.
NASSCOM and the Indian IT industry have welcomed the exemption, calling it a long-awaited solution to a major cost burden. “By eliminating this double contribution, the agreement directly addresses a long-standing challenge faced by Indian technology companies and service providers operating in the UK,” NASSCOM said.
The India-UK FTA also eases mobility for professionals, contractual service suppliers, business visitors, investors, and their families, further opening the UK market for Indian talent. The agreement’s focus on digital and professional services aligns with India’s strengths in technology, AI, cybersecurity, and digital transformation.
