India-UK Social Security Pact: Benefits for 75,000 Indian Workers
UPSC / SSC current affairs note · Economy
Why in news
The India-UK Free Trade Agreement (CETA) came into effect on July 15, along with the Double Contribution Convention (DCC) that exempts Indian workers from UK social security contributions for five years. This benefits around 75,000 Indian professionals working in Britain for a limited period, preventing loss of salary to social security payments.
Background
The India-UK Comprehensive and Economic Trade Agreement (CETA) was signed to reduce tariffs and enhance trade. The DCC was agreed upon in July of the previous year as part of the FTA negotiations to address social security contributions for temporary workers.
Key facts
The India-UK FTA (CETA) came into effect on July 15.
The Double Contribution Convention (DCC) exempts Indian workers and their employers from paying UK social security contributions for five years.
Around 75,000 Indian professionals working in the UK for a limited period will benefit.
The DCC prevents Indian workers from losing a significant portion of their salary to social security contributions.
The agreement focuses on the movement of professionals between India and the UK.
The DCC was agreed upon last July as part of the FTA negotiations.
Prelims pointers
- India-UK Comprehensive and Economic Trade Agreement (CETA)
- Double Contribution Convention (DCC)
- Social security contributions exemption for five years
- 75,000 Indian professionals affected
Mains angles
- Discuss the significance of social security agreements in bilateral trade pacts.
- Analyze the impact of the India-UK FTA on Indian professionals and the services sector.
- Critically examine the role of labor mobility in modern trade agreements.