India-UK Pact: Boost to Employee Mobility

India and the UK have signed an agreement to prevent double social security contributions for employees on short-term assignments. This move is set to enhance partnerships in the service sector, benefiting firms like TCS and Infosys, as well as around 75,000 workers.

On Tuesday, India and the UK solidified a pact to eliminate double social security contributions for employees on short-term assignments, a move expected to bolster mobility and extend social security coverage. The accord aims to prevent dual contributions for assignments lasting up to three years.

Signed by Foreign Secretary Vikram Misri and British High Commissioner Lindy Cameron, the agreement is seen as a step forward in enhancing India-UK collaborations in the service sector, promising mutual benefits. IT giants such as Tata Consultancy Services and Infosys stand to gain significantly.

The agreement is aligned with the India-UK Comprehensive Economic and Trade Agreement (CETA) and is set to become effective in conjunction with it. The MEA has indicated it will facilitate the process by providing Certificates of Coverage to the stakeholders, streamlining operations on both sides.

(With inputs from agencies.)