75000 employees, 900 companies, this is how India provides benefits of Rs 47000 crore to Britain every year.

The social security agreement between India and Britain will benefit about 9095 percent of Indian professionals working in Indian companies in Britain. This step will reduce the costs of companies and increase the competition of Indian service providers in the UK market. An official gave this information. Both countries announced on 17 June that the Social Security Agreement and the Comprehensive Economic and Trade Agreement (CETA) would come into force from 15 July.

Big companies in the IT sector like Tata Consultancy Services (TCS) and Infosys will directly benefit from DCC. The official said that professionals of Indian origin contribute about $ 500 million to Britain’s social security system every year.

75000 Indian employees contribute

Under this agreement, employees sent temporarily by Indian or British companies will be free from social security contributions in the host country for a maximum of five years. This was a major demand of India. About 75,000 Indian professionals are employed in Britain, while more than 900 Indian companies are operating there. The average annual salary of a professional there is around £40,000,50,000. According to estimates, generally around 15 percent of the salary goes towards social security contributions. In Britain, approximately 10 years of service is required to receive social security benefits.

The business of both the countries is so big

The official said, if an employer is paying employee’s social security contributions in India, he will not have to pay in Britain. For this, coverage certificate will have to be given. Indian employers will be able to take advantage of this exemption from July 15. This exemption, however, will not apply to Indians working in other foreign companies in Britain. This agreement will enhance social security for employees on temporary foreign postings and strengthen the India-UK services sector partnership. This is also important because Britain is the second largest export market of India’s $283 billion IT industry and contributes about 17 percent of total exports. India’s services exports to Britain stood at $21.6 billion in 2024, while imports were $13.7 billion.