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Explained: What Double Contributions Convention Means for Indians Working in the UK
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What Happened?
The Double Contributions Convention (DCC) establishes where social security contributions are paid for Indian employees working in the UK and vice versa. Effective from July 15, 2026, it aims to prevent double contributions during international assignments.
Key points
- The DCC allows employees to pay social security in one country only.
- Employees sent from India to the UK can remain under Indian social security for up to five years.
- A Certificate of Coverage (COC) is required to prove social security coverage.
- The DCC does not change immigration rules or confer work rights.
- Existing assignments before July 15, 2026, do not automatically qualify for DCC benefits.
Key insights
- Employers must ensure employees meet eligibility criteria before assignments.
- The DCC may encourage more Indian employees to take assignments in the UK.
- Clear guidelines on hybrid working arrangements are needed for compliance.
Why it matters
The DCC could simplify social security obligations for Indian employees working in the UK, reducing costs and compliance issues.
Source
Times of India
