UK-India Trade Deal: DCCA To Help Indian Professionals Save More While Working In The UK

Indian professionals who are working in Britain will be able to accumulate more in their employees’ provident fund (EPF) account from July 15, 2026. Union Commerce and Industry Minister Piyush Goyal said on Sunday that the free trade agreement (FTA) between India and the UK will become effective, providing opportunities to businesses to boost exports and Indian professionals working in the UK to save more in their social security EPF funds.

The minister said that the Double Contribution Convention (DCC) agreement in the FTA will exempt Indian professionals working there on short-term assignments of less than five years from contributing to Britain’s social security funds. Eventually, they can continue contributing to their EPF account in India and earn interest as determined every year.  

Goyal said, “This UK-India free trade deal brings new opportunities and immense possibilities for us all. Regarding our young men and women who go there to work—often for two, three, or five years, sometimes through inter-corporate transfer—previously, about 25 per cent of their salary was effectively wasted; the local government would take it, and the worker received no benefit from it. Now, we have finalised a ‘double contribution convention agreement’ that will also come into effect on the 15th,” per ANI report.

He further said, “Under this, for Indians going there to work in the services sector or other jobs for up to five years, the 25 per cent of their salary that was previously taken by the local government will now be deposited into their provident fund accounts in India. That money will belong to them; it earns 8.25 per cent tax-free interest and serves as a support for their old age, ensuring social security for their families.”

Until now, Indian workers, posted in the UK for assignments ranging from a few months to a few years, had to mandatorily contribute (around 25 per cent of their salary) to the UK’s social security system, but they could not claim the benefit, which typically includes pension, medical facilities, and protection against unemployment, because of coming back to India after completing their assignment.

This will also lead to financial gains for employers as they will be able to save up that 25 per cent (used to be paid to the UK’s social security system) in their employment costs and make the social security record-keeping less complicated.

This FTA between India and the UK has been the result of over three years of discussion. In May 2025, the DCC agreement was secured, and now the agreement is set to come into force two days from now, on July 15, 2026.  

Notably, India has already had such social security agreements with other countries, including France, Germany, Belgium, Denmark, Switzerland, the Netherlands, and South Korea.