Double Contributions Convention: How EPF, NIC and social security rules change for Indians posted to UK
If you are an employee sent by your company to work in another country for a few years, you may have to contribute to the social security system of the country where you work, even while continuing to make contributions at home. This can mean paying social security contributions in two countries or having gaps in your contribution record.
India and the UK have addressed this issue through a Double Contributions Convention (DCC), which came into force on July 15, 2026. The agreement extends the exemption from dual social security contributions for eligible employees on temporary overseas assignments from 52 weeks to 60 months.
Here is what the agreement means for Indian and UK employees, and how the rules have changed.
Social security contributions are payments made by employees and employers towards benefits such as pensions and retirement savings. These contributions are generally paid in the country where the employee works.
The DCC is an agreement between India and the UK to prevent employees and employers from having to make social security contributions in both countries during temporary assignments or visits.
It also helps employees maintain their social security contribution records in their home country instead of splitting them between two countries.
Before the DCC took effect, employees working temporarily in the other country could face social security contribution requirements under both countries' domestic rules.
For example, Indian employees working in the UK could become liable to pay UK National Insurance contributions (NICs), while UK employees working in India could be required to contribute to India's Employees' Provident Fund (EPF).
The EPF is a retirement savings scheme to which eligible employees and employers contribute. NICs are payments made into the UK's social security system, which helps establish eligibility for the State Pension and certain other benefits.
“The Agreement on Social Security exempts Indian workers and employers from making dual social security contributions in the United Kingdom during temporary assignments,” according to the Ministry of Commerce and Industry's release dated June 17, 2026.
The DCC exemption period was initially proposed to be three years but was extended to five years (60 months) when the agreement came into force on July 15, 2026.
“Under the DCC, Indian employees sent temporarily to the UK by India-based employers can avoid paying UK NICs for up to 60 months, subject to the agreement's conditions. They will continue contributing to India's EPF scheme, helping them maintain continuity in their social security records,” according to a UK government release dated June 17, 2026.
Previously, the UK's domestic rules exempted employees sent from countries without a relevant social security agreement from NICs for the first 52 weeks of their stay.
Under the DCC, eligible employees are treated as detached workers—employees temporarily sent by their existing employer to work in another country. They would instead pay a similar amount in social security contributions back into India’s social security scheme.
However, the exemption does not mean Indian employees will build entitlement to the UK State Pension or other contributory benefits during the assignment. They remain covered by India's social security system instead.
“Social security contributions are normally paid in the country where the work is carried out,” according to a UK government release. However, an employee who independently moves to the UK and takes up a local job will have to pay UK NICs from the start of employment.
UK employees temporarily sent to India by UK-based employers can also benefit from the five-year exemption.
Under India's EPF rules, eligible foreign employees, classified as International Workers, are subject to employer and employee contributions. The employer's contribution is set at 12% of basic wages and dearness allowance, with the employee contributing a matching 12%, for a combined contribution of 24% of the relevant wage base.
Under the DCC, eligible UK employees and their employers will be exempt from contributing to India's EPF scheme during temporary assignments of up to 60 months. Instead, they will continue contributing to the UK's social security system.
This allows UK employees to continue building entitlement to the UK State Pension while working temporarily in India.
The DCC does not cover every employee moving between the two countries. For instance, an Indian resident who moves to the UK, secures a job with a UK employer and begins working there will have to pay UK NICs from the start of employment.
Similarly, the exemption will not apply to an employee sent to the UK for a planned assignment exceeding 60 months. Such an employee will be liable to pay UK NICs from the start of the assignment.
The agreement also does not automatically extend to family members who take up employment in the UK. They must pay UK NICs under the applicable rules.
No. The agreement concerns social security contributions; it does not change immigration rules or the UK's ability to control entry into the country. The DCC will not make it cheaper to hire Indian workers over British workers.
“Article 8(7) of the DCC ensures that Indian detached workers will continue to pay back into India’s social security scheme on a similar basis whilst they are not paying NICs, meaning the amount of contributions will be similar,” according to the UK government.
Indian employees must still meet the applicable visa, sponsorship and salary requirements. For example, the UK's Senior or Specialist Worker visa has specified salary thresholds, which may include a minimum salary of £48,500 or the going rate for the role, whichever is higher.
Visa fees, the IHS and other relevant charges also continue to apply. According to the UK government's published explainer, the cited costs include a visa application fee of £769; an IHS of £1,035 for a stay of up to 12 months; and a further £1,035 for each additional year.
Employers may also need to pay the Immigration Skills Charge of £1,000 for the first year and £500 for each additional six-month period, as well as £525 for a Certificate of Sponsorship, where applicable.
“If Indian workers and their employers cannot meet these requirements, they will not be given a visa, and they cannot benefit from the DCC.”
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.
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