<p>New Delhi: India has secured a three-year exemption from social security contributions for domestic workers who are temporarily in the UK and their employers under the Double Contribution Convention Agreement (DCCA).</p>.<p><a href="https://www.deccanherald.com/india/india-uk-clinches-trade-deal-duty-cut-on-british-whisky-cars-boost-to-garment-leather-goods-exports-3527161">India and the UK</a> on Tuesday announced conclusion of this agreement along with the free trade pact.</p>.<p>The agreement will lead to savings of around 20 per cent of salary, an official said, adding it is expected to benefit more than 60,000 employees from IT sector alone.</p>.Explained | All you need to know about India's free trade agreements.<p>The benefits to Indian companies and employees would exceed Rs 4,000 crore.</p>.<p>According to the commerce ministry, the agreement will make Indian service providers significantly more competitive in the UK.</p>.<p>"In an unprecedented achievement, India has secured an exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution Convention," it said.</p>.<p>Presently, Indian professionals working for a limited period in Britain contribute to their social security funds, but are not able to get their benefits as they return once the projects are complete.</p>.<p>It was a long-standing demand of Indian businesses operating in Britain to cut down on the additional cost burden associated with bringing in skilled Indian professionals on a short-term basis.</p>.<p>The compulsory National Insurance (NI) contributions of skilled Indian professionals in the UK on temporary visas remain an additional cost burden of about 500 British pounds per employee a year, over and above all other taxes and health surcharge paid towards the National Health Service (NHS), as per 2021 data.</p>.<p>India has social security agreements with countries like Belgium, Germany, Switzerland, France, Denmark, South Korea, and the Netherlands.</p>.<p>Thus, Indians going abroad for employment are not required to contribute towards social security schemes in these countries.</p>.<p>They and their employers can continue with social security schemes run by the Employees' Provident Fund Organisation (EPFO) here in India while serving abroad.</p>
<p>New Delhi: India has secured a three-year exemption from social security contributions for domestic workers who are temporarily in the UK and their employers under the Double Contribution Convention Agreement (DCCA).</p>.<p><a href="https://www.deccanherald.com/india/india-uk-clinches-trade-deal-duty-cut-on-british-whisky-cars-boost-to-garment-leather-goods-exports-3527161">India and the UK</a> on Tuesday announced conclusion of this agreement along with the free trade pact.</p>.<p>The agreement will lead to savings of around 20 per cent of salary, an official said, adding it is expected to benefit more than 60,000 employees from IT sector alone.</p>.Explained | All you need to know about India's free trade agreements.<p>The benefits to Indian companies and employees would exceed Rs 4,000 crore.</p>.<p>According to the commerce ministry, the agreement will make Indian service providers significantly more competitive in the UK.</p>.<p>"In an unprecedented achievement, India has secured an exemption for Indian workers who are temporarily in the UK and their employers from paying social security contributions in the UK for a period of three years under the Double Contribution Convention," it said.</p>.<p>Presently, Indian professionals working for a limited period in Britain contribute to their social security funds, but are not able to get their benefits as they return once the projects are complete.</p>.<p>It was a long-standing demand of Indian businesses operating in Britain to cut down on the additional cost burden associated with bringing in skilled Indian professionals on a short-term basis.</p>.<p>The compulsory National Insurance (NI) contributions of skilled Indian professionals in the UK on temporary visas remain an additional cost burden of about 500 British pounds per employee a year, over and above all other taxes and health surcharge paid towards the National Health Service (NHS), as per 2021 data.</p>.<p>India has social security agreements with countries like Belgium, Germany, Switzerland, France, Denmark, South Korea, and the Netherlands.</p>.<p>Thus, Indians going abroad for employment are not required to contribute towards social security schemes in these countries.</p>.<p>They and their employers can continue with social security schemes run by the Employees' Provident Fund Organisation (EPFO) here in India while serving abroad.</p>