11. Bilateral Mobility: India-UK Social Security Agreement 2026

India and the United Kingdom signed a landmark Social Security Agreement (SSA), also termed the Double Contributions Convention (DCC), in New Delhi on February 10, 2026. The pact was inked by Indian Foreign Secretary Vikram Misri and British High Commissioner Lindy Cameron. This agreement addresses the longstanding grievance of \'double taxation\' on social security for skilled professionals. It is a critical subcomponent of the broader India-UK Comprehensive Economic and Trade Agreement (CETA), which was signed in July 2025 and is slated for full implementation in the first half of 2026.Summary of Key Developments • Elimination of Double Contributions: The pact ensures that employees sent on short-term assignments (up to 36 months) do not have to pay social security taxes in both countries. They will only contribute to their home country\'s system. • Certificate of Coverage (CoC): To avail of the exemption, employees must obtain a CoC from their home country\'s social security authority (the EPFO in India). This serves as legal proof of exemption from host-country deductions. • Economic Impact: The agreement is expected to benefit nearly 75,000 Indian professionals (primarily in IT, Finance, and Engineering) and over 900 companies, resulting in estimated annual savings of over ₹4,000 crore. • Protection of Records: By allowing workers to remain in their home country’s social security net during overseas deputation, the agreement prevents \'fragmentation\' of their contribution records, ensuring their long-term pension and provident fund benefits remain intact. • Reciprocity: The DCC is a reciprocal treaty; British professionals working in India for up to three years will similarly be exempt from Indian social security contributions (EPF), provided they continue paying UK National Insurance. • Service Sector Synergy: By reducing the \'cost of doing business,\' the pact enhances the competitiveness of Indian service exporters, facilitating smoother \'Mode 4\' (movement of natural persons) trade under the Free Trade Agreement. Key Definitions • Detached Worker: An employee sent by their employer in one country to work temporarily in another country for a specified period (36 months in this pact). • Double Contribution: A situation where an expatriate is legally required to contribute to the social security systems of both their home and host countries simultaneously. • Totalization: A provision (often found in broader SSAs) that allows for the combining of periods of work in both countries to meet the minimum eligibility criteria for social security benefits like pensions. • Certificate of Coverage (CoC): A document issued by the home country\'s social security agency exempting the employee from paying social security taxes in the host country. Constitutional & Legal Provisions • Article 73: Extends the executive power of the Union to matters with respect to which Parliament has power to make laws, including international treaties. • Entry 13, Union List (Schedule VII): \'Participation in international conferences, associations and other bodies and implementing of decisions made thereat.\' • Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: The primary legal framework in India for social security. The EPFO is the designated competent authority to issue CoCs under this act. • Section 79 of the IT Act (for Digital Records): Ensures the validity of digital certificates of coverage hosted on official portals of the MEA and EPFO. Conclusion The India-UK Social Security Agreement is a \'business-enabling\' reform that fixes a significant friction point in bilateral trade. While the CETA addresses tariff barriers for goods, the DCC addresses the hidden \'human capital tax\' for services. By aligning with International Labour Organization (ILO) standards, this pactsafeguards the financial dignity of Indian professionals abroad and cements India\'s position as a global hub for high-skill talent. UPSC Relevance • GS Paper II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests; Effect of policies and politics of developed and developing countries on India’s interests. • GS Paper III: Indian Economy and issues relating to mobilization of resources; Effects of liberalization on the economy; Changes in industrial policy and their effects on industrial growth. • Mains: The significance of \'Mode 4\' mobility in India\'s FTA negotiations with Western nations; Social security as a tool for economic diplomacy.