New Delhi, May 6 (PTI) India has obtained a three -year discount from social security contribution to domestic workers, temporarily in the UK and under the double contribution conference agreement (DCCA) to their employers.
India and the UK on Tuesday announced the conclusion of the agreement with the Free Trade Treaty.
The agreement will save about 20 percent of the salary, an official said, “It is expected to benefit more than 60,000 employees from the IT sector alone.”
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Indian companies and employees will benefit more than Rs 4,000 crore.
According to the Ministry of Commerce, the agreement will make Indian service providers quite competitive in the UK.
“In an unprecedented achievement, India has achieved a discount for Indian workers who are temporarily and their employers are for a period of three years under the dual contribution conference from paying social security contribution to the UK,” said this.
Currently, Indian professionals working for a limited period in the UK contribute to their social security fund, but they are not able to return after the projects are completed.
This was a long demand for Indian businesses working in the UK, which was cutting the additional cost burden associated with bringing skilled Indian professionals on a short -term basis.
Compulsory National Insurance (NI) contribution of skilled Indian professionals in UK on temporary visa, according to 2021 data, has an additional cost burden of about 500 British pounds per employee per year on all other taxes and health surcharge paid by National Health Services (NHS).
India has social security agreements with countries such as Belgium, Germany, Switzerland, France, Denmark, South Korea and Netherlands.
Thus, Indians going abroad for employment do not need to contribute to social security schemes in these countries.
He and his employers can continue with the social security schemes run by the Provident Fund Organization (EPFO) of employees in India, serving abroad. PTI RR HVA
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