10 July 2026
The UK-India Double Contributions Convention (DCC) will come into force on 15 July 2026, alongside the wider UK-India Comprehensive and Economic Trade Agreement (CETA).
What is the Double Contributions Convention?
A Double Contributions Convention is a type of social security agreement that coordinates where social security contributions are paid. The DCC aims to ensure that workers who are temporarily assigned to work in the other country, often referred to as ‘detached workers’, remain subject to only one country's social security system at a time.
The agreement also helps employees maintain continuity in their social security records by allowing them to continue contributing to their home country's system while working temporarily overseas. However, the DCC does not create any new entitlement to social security benefits or change existing benefit eligibility rules. Its purpose is to coordinate where contributions are paid, rather than provide access to benefits in the host country.
The UK already has similar arrangements with a number of countries, including Japan, South Korea, Canada, the United States and EU member states, while India has social security agreements with more than 20 countries.
What changes from 15 July?
As a general rule, employees working in a country that has a social security agreement with the UK will usually become liable for social security contributions in the country where they work. However, under the DCC, qualifying employees who are temporarily assigned between the UK and India may continue paying social security contributions solely in their home country, provided they meet the relevant conditions and obtain the appropriate certification.
The agreement introduces a reciprocal exemption period of up to 60 months (five years) for qualifying temporary assignments between the UK and India. This extends the UK's existing 52-week National Insurance exemption that can apply in certain circumstances where there is no reciprocal social security agreement.
For example:
- a UK employee sent to work temporarily in India for up to 60 months can continue paying UK National Insurance contributions (NICs)
- an Indian employee temporarily assigned to the UK by an India-based employer can continue contributing to India's social security system instead of paying UK NICs.
Please note the agreement applies only to temporary assignments. Individuals who move permanently or take up employment directly in the other country will generally pay social security contributions under the normal rules of the country where they work.
Certificates of Coverage
UK employers seeking to retain UK National Insurance coverage for employees posted to India will generally need to obtain a Certificate of Coverage (CA9107) from HMRC. The certificate confirms that UK National Insurance contributions continue to apply while the employee is working in India and provides evidence that social security contributions are not due in India.
Applications can be made through HMRC's CA9107 process by:
- employers
- employees
- self-employed individuals
- authorised agents acting on behalf of employers or employees.
Applicants must provide personal details, National Insurance information, residency details and employment information relating to the overseas assignment.
Payroll implications
HMRC's updated guidance confirms that where an employee has a valid Certificate of Coverage and remains subject to UK National Insurance, employers should continue calculating and deducting UK NICs as though the employment were being carried out in the UK.
The certificate therefore provides formal evidence that social security contributions are being paid in one country only, ensuring compliance with the reciprocal arrangements established by the DCC.
Special rules for assignments to India
HMRC has also published specific rules aimed at preventing repeated short-term postings from being used to extend coverage indefinitely.
Where an employer sends an employee to India, a new Certificate of Coverage cannot be issued:
- until at least six months after a previous posting to India has ended; or
- where the previous posting lasted less than six months, until a break longer than the previous posting has elapsed.
For example, an employee whose previous assignment to India lasted 20 days must wait at least 20 days before becoming eligible for another certificate.
Supporting UK-India trade and labour mobility
The DCC forms part of the wider UK–India trade agreement and is intended to support cross-border business activity by removing the risk of double social security contributions for temporary workers. It also helps workers maintain continuity in their home country's social security record while overseas.
For organisations that regularly deploy employees between the UK and India, the agreement provides greater certainty over payroll obligations, assignment costs and social security liabilities. Employers planning assignments after 15 July 2026 should review their international mobility and payroll arrangements to ensure they understand the new requirements and obtain the necessary certification where appropriate.
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