India, UK actively negotiating social security agreement: Piyush Goyal

India is actively negotiating a social security agreement with the UK along with trade and investment pacts, Commerce and Industry Minister Piyush Goyal said on Monday.

The social security pact, officially dubbed as Double Contribution Convention Agreement, would help avoid double contributions to social security funds by Indian professionals working fora  limited period in Britain.

Indian professionals working for a limited period in Britain contribute to their social security funds but are not able to get its benefits as they return once the projects are complete.

Goyal said the two countries are actively negotiating on three different fronts - a free trade agreement (FTA), a bilateral investment treaty (BIT), and a Double Contribution Convention agreement. "All three are in parallel and conjoint with each other," he told reporters here.

He said in order to bring balance in the opportunities and benefits for both countries, India had flagged the issue of giving attractive services offer in return for an attractive social security or a totalisation agreement from the UK.

With the growth trajectory being different in both countries, the potential business opportunities were much different and therefore India had requested the UK to consider a social security pact about two years ago.

It is a long-standing demand of Indian businesses operating in Britain to cut down on the additional cost burden associated with bringing in skilled Indian professionals on a short-term basis.

The compulsory National Insurance (NI) contributions of skilled Indian professionals in the UK on temporary visas remain an additional cost burden of about 500 British pounds per employee a year, over and above all other taxes and health surcharges paid towards the National Health Service (NHS), as per 2021 data.

India has Social Security Agreements (SSAs) with countries like Belgium, Germany, Switzerland, France, Denmark, Korea, and the Netherlands.

Thus, Indians going abroad for employment are not required to contribute towards social security schemes in SSA countries.

They and their employers can continue with social security schemes run by the Employees' Provident Fund Organisation (EPFO) here in India while serving abroad.

India and the UK on Monday announced resumption of talks for the proposed trade agreement.

The two countries launched talks for an FTA in January 2022 with a view to boosting economic ties.

There are 26 chapters in the agreement, which include goods, services, investments, and intellectual property rights.