UK–India Double Contributions Convention: key points for employers

The UK Government, alongside the UK-India Comprehensive and Economic Trade Agreement (CETA) has agreed to negotiate and publish a reciprocal Double Contributions Convention (DCC) Agreement, between the UK and India.

The long-awaited agreement is designed to prevent double social security contributions and provide certainty for cross-border employment arrangements and is a major development for organisations with mobile employees between the two countries.

Why this matters for businesses

Social security costs can create unexpected financial and administrative challenges for internationally mobile employees. Without a coordinated agreement, businesses can face:

• Double social security liabilities
• Higher assignment and mobility costs
• Complicated payroll compliance

The DCC aligns UK–India arrangements with the UK’s existing agreements with countries such as the 27 EU member states, Canada, Japan, Switzerland, South Korea, and USA, offering clarity for employers.

Some key provisions businesses should be aware of:

36-month detached worker rule

• Employees sent temporarily from the UK to India, or vice versa, for up to 36 months may remain in their home country social security system.
• To access the exemption, employers must obtain a Certificate of Coverage (CoC). Early planning is essential to avoid unexpected payroll exposure.

New remote working provision

• In a progressive move, the DCC explicitly recognises temporary remote working by personal choice (subject to employer approval).
• Employees working remotely in the other country on a temporary basis may also obtain a CoC.

Timing and implementation

HMRC has indicated that the agreement is expected to be effective by summer 2026, at which point employers may need to:

• Apply for CoCs for new assignments
• Review cross-border mobility and remote working
• Update payroll processes and withholding positions

There are currently no transitional provisions, meaning the rules will likely apply only to assignments starting after the agreement becomes effective.

What should businesses do next?

To prepare, UK and Indian organisations should:

• Review current and upcoming assignments
• Identify where CoCs may be required
• Assess internal payroll readiness
• Revisit remote working policies in light of the new provisions

Proactive planning will help avoid unnecessary costs and ensure compliance.

How we can help your business

The UK–India DCC supports modern mobility and strengthens the employment framework for businesses operating in both markets. Paired with the formal recognition of remote working, the agreement marks a meaningful shift towards flexible, globally connected working models.

Now is the ideal time to begin planning - for tailored guidance on how this agreement may affect your business, or mobile workforce, please contact our Global Mobility Tax team here, so that we can help maximise your potential.

Click here to read the UK-India Double Contributions Convention (DCC) Agreement in full.