EPF | International Workers | Social Security
Employers can now avoid double social security contributions for eligible short-term assignments.
Signed on February 10, 2026 under the broader framework supporting avoidance of double contributions, continuity of coverage, and smoother cross-border mobility.
The Government of India and the Government of the United Kingdom of Great Britain and Northern Ireland have signed an Agreement on Social Security relating to Social Security Contributions. The Agreement allows employees moving between the two countries, and their employers, to pay social security contributions only in one country at a time for eligible temporary assignments.
What this changes, in simple terms
If an employee is deputed to the other country on a temporary assignment (up to 36 months), contributions can continue in the home country, and the employee and employer can avoid paying into both systems simultaneously—subject to certification and the Agreement’s conditions.
Purpose and expected outcomes
The purpose of the Agreement is to support workers, businesses and trade by ensuring that employees moving between the UK and India on temporary assignments can avoid double social security contributions. This also prevents fragmentation of an employee’s social security record by keeping contributions in the home system during the deputation period. The Agreement is expected to boost workforce mobility of professionals and high-skilled workers while strengthening bilateral trade and service-sector competitiveness.
How the mechanism works
Coverage principle
For qualifying temporary assignments, the employee continues contributing in the home country system, and the host-country contributions can be exempted based on a valid Certificate of Coverage.
Operational timeline (high level)
Step-by-step flow
Step 1: Identify eligibility
Confirm the assignment is temporary and falls within the Agreement’s permitted duration and conditions (up to 36 months).
Step 2: Obtain Certificate of Coverage
Secure a Certificate of Coverage to certify exemption from host-country contributions during the deputation.
Step 3: Continue contributions in home country
Maintain home-country social security contributions to preserve continuity of coverage and records.
Step 4: Maintain documentation
Keep deputation records, payroll mappings, and compliance documentation inspection-ready for both jurisdictions.
Link to the broader India–UK framework
Earlier, on July 24, 2025, India and the UK signed the Comprehensive Economic Trade Agreement (CETA), where both countries committed to concluding this Social Security Contributions Agreement. As part of the India–UK trade deal, the Agreement is expected to come into effect together with CETA during the first half of this year.
Why it matters for employers and international workers
Cost and compliance efficiency
For companies deputing talent to the UK (and vice versa), exemption from dual contributions can translate into meaningful cost efficiencies, clearer payroll treatment, and smoother mobility planning.
Continuity of social security record
The “one-country-at-a-time” contribution model helps employees avoid fragmented records during short-term cross-border assignments and supports long-term benefit continuity.
Understanding Social Security Agreements and the “International Worker” framework
Till 2008, foreign nationals working in India were generally not covered under Provident Fund regulations where contributions were not mandatory above the wage ceiling, while Indian nationals working abroad often had to contribute to host-country systems and risk losing benefits due to short tenures or unmet qualifying periods. In October 2008, India introduced special provisions under the Provident Fund and Pension Scheme and defined the category of “International Worker” (IW). This enabled India to negotiate Social Security Agreements (SSAs) with countries having significant cross-border workforce movement.
What an SSA typically provides
Bilateral SSAs are designed to protect cross-border workers and employers by enabling exemption from contributions for short-term assignments, supporting pension exportability (subject to rules), and allowing totalisation of contribution periods (subject to agreement terms). These features can reduce cost for employers and preserve social security continuity for employees.
India’s SSA landscape (illustrative snapshot)
The Ministry of External Affairs has indicated that SSAs are being negotiated with various countries on a reciprocal basis. India has signed SSAs with Belgium, France, Germany, Switzerland, Luxembourg, Netherlands, Hungary, Denmark, the Czech Republic, Republic of Korea and Norway. Similar agreements have been finalized with Canada and the Federal Republic of Germany and are expected to be signed shortly, while negotiations are in progress with Bulgaria, Austria, Cyprus, Finland, Greece, Italy and Australia, and exploratory talks have been held with the USA.
Need help implementing this in payroll and deputation workflows?
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Note: This article is for general informational purposes and should not be treated as legal advice. Applicability and processes may vary based on assignment terms, documentation, and the notified operational guidelines issued by the relevant authorities.
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