Shamini 
(C): Twitter
In a historic agreement, India and the UK have agreed upon a Free Trade Agreement (FTA) with the intention to double bilateral trade to USD 112 billion by 2030. The Double Contribution Convention (DCC) is one of the most noteworthy elements of this agreement and applies to approximately 75,000 Indian Nationals working in the UK and will exempt these professionals from contributing to social security for up to 36 months.
What Is the DCC and How Does It Benefit Indian Workers?
Generally, Indian employees in the UK and their employers are required to participate in the UK’s social security system regardless of whether they are making contributions in India. The DCC alleviates this double requirement, greatly increasing the employee’s take home pay and reducing costs for businesses making salary offers to Indian talent.
This exemption will apply to short term assignments of up to three years and should primarily apply to Indian professionals in the IT, engineering, finance and consulting sectors.
How Does This Improve Worker Mobility?
The DCC is part of the wider India-UK Comprehensive Economic and Trade Agreement (CETA) to encourage worker mobility by easing the costs and enhancing the processes associated with employment in another country. It ensures that social security payments can only be made in the home country and that double tax is eliminated.
What Are Experts Saying?
Analysts from EY India and the leading law firms describe the agreement as a “game changer,” and a move consistent with India’s increasing involvement in exchanging talent globally. The agreement is also a move for India to be on par with countries such as Germany, Canada and Japan with which it has similar social security agreements.
This will now lead to greater opportunities for youth based in India, new ventures or professionals as the agreement makes international assignments easier and cheaper.
