New Delhi: Indian companies operating in the UK would not have to make social security contributions for up to five years for employees they move from India to support their operations, a one which will give a major a boost to IT majors like Tata Consultancy Services (TCS) and Infosys.
The commerce ministry said that the Agreement on Social Security or the Double Contribution Convention (DCC) will come into effect from July 15 along with the comprehensive economic and trade agreement (CETA).
The DCC “exempts Indian workers and employers from making dual social security contributions in the United Kingdom during temporary assignments. The period of exemption has been increased from 3 years to 5 years,” it said.
More than 75,000 Indian professionals and over 900 companies are expected to benefit, it said.
The agreement, it said, will support mobility and continued social security coverage of the employees on temporary overseas assignments.
“This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries,” it added.
The announcement is important as the UK is the second-largest export market for USD 283 billion Indian IT industry, and contributes 17 per cent to its export basket.
