India-U.K. social security pact not retrospective
The India-U.K. Double Contributions Convention (DCC), which came into effect on Wednesday, allows temporary Indian and British workers an exemption from paying social security contributions in their host countries for up to 60 months. However, the guidance from His Majesty's Revenue and Customs (HMRC) clarifies that the DCC is not retrospective. This means it does not apply to individuals already working in the U.K. or India before July 15, 2026. To avail the exemption, eligible workers must obtain a 'certificate of coverage' from India's Employees' Provident Fund Organisation (EPFO) as proof of contributions in India.
Key Points
- The India-U.K. Double Contributions Convention (DCC) became effective on Wednesday.
- The DCC allows temporary workers a 60-month exemption from host country social security contributions.
- The pact is not retrospective, applying only to employees arriving on or after July 15, 2026.
- Eligible individuals must obtain a 'certificate of coverage' from India's EPFO for exemption.
- National Insurance contributions involve payments from both employees and employers.
Exam Facts
- The India-U.K. Double Contributions Convention (DCC) came into effect on July 16, 2026.
- The exemption period for social security contributions is 60 months.
- His Majesty's Revenue and Customs (HMRC) issued guidance on the DCC.
- Workers need a 'certificate of coverage' from India's Employees' Provident Fund Organisation (EPFO).
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