The UK–India Double Contributions Convention (DCC) came into force on 15 July 2026. It took effect alongside the two countries’ trade agreement. Its main aim is to stop employees and employers paying social security contributions in both countries. In addition, it extends the exemption period for eligible employees who work temporarily abroad. Under the new rules, this period rises from 52 weeks to up to 60 months. Importantly, the extension applies in both countries.
What has HMRC clarified?
HMRC has now clarified the transitional arrangements. These cover employees who were already working temporarily in the UK or India when the agreement started. As a result, employers now have clearer guidance on UK–India National Insurance exemptions during the changeover.
Under these arrangements, some employees can keep their previous social security position. Specifically, this applies to those who started temporary work in the other country within a set window. That window runs from 15 July 2025 to 14 July 2026. These employees can keep their position for up to 52 weeks from the start of their assignment.
Indian employees working in the UK
Indian employees already working temporarily in the UK on 15 July 2026 remain exempt from UK National Insurance contributions. This exemption lasts until the end of their first 52 weeks. Helpfully, they do not need a certificate of coverage from the Indian authorities.
UK employees working in India
By contrast, UK employees working temporarily in India on that date follow a different process. They can apply to HMRC for a certificate of coverage. With this certificate, they can continue paying UK National Insurance contributions. However, this only lasts for the rest of their initial 52-week period.
Who do the rules apply to?
The transitional arrangements come with conditions. Consequently, they do not apply automatically to everyone moving between the two countries. For this reason, employers should not assume that UK–India National Insurance exemptions cover every worker. Instead, they should check each case against the relevant conditions.
What should employers do now?
First, employers should review all affected assignments between the UK and India. Next, they should work out which rules apply to each employee. They should also confirm whether an employee needs a certificate of coverage. Finally, they should keep clear records of the start date for each temporary assignment. After all, these dates decide which rules apply.
Need help with UK–India National Insurance exemptions?
Our payroll and employment tax specialists can review your international assignments. We can also help you apply for certificates of coverage where needed. Contact our team today to make sure your business stays compliant.
