New Agreement Benefits Indian Workers in the UK

The upcoming India-UK Free Trade Agreement, effective July 15, will significantly benefit Indian professionals working in the UK. With the new Double Contribution Convention Agreement, Indian workers will no longer lose 25% of their salaries to the UK's social security system. Instead, this amount will be deposited into their Provident Fund accounts in India, earning tax-free interest. The FTA promises to eliminate import duties on Indian goods, boosting trade and economic growth for both nations. This agreement is expected to enhance India's GDP by £5.1 billion annually, while also providing social security for Indian families abroad. Read on to learn more about the implications of this landmark agreement.

By Narendra Chaudhary Jul 12, 2026, 17:09 IST

Significant Changes for Indian Professionals

Indian workers in the UK on temporary assignments lasting up to five years will now retain nearly 25% of their salaries, previously allocated to the UK's social security system. This change is due to the implementation of the Double Contribution Convention Agreement, which coincides with the India-UK Free Trade Agreement (FTA) set to take effect on July 15, as announced by Commerce and Industry Minister Piyush Goyal. He stated, "We have established a 'double contribution convention agreement' that will also be effective from the 15th. Under this agreement, for Indians working in various sectors for up to five years, the 25% of their salary that was previously deducted by the local government will now be redirected to their Provident Fund accounts in India. This amount will be theirs, accruing 8.25% tax-free interest, providing a safety net for their retirement and ensuring social security for their families."

Regarding the forthcoming FTA with the UK, the minister noted that only two days remain until its implementation. Starting from the 15th, all goods exported from India to the UK will enter duty-free. This free trade agreement opens up new avenues and vast potential for both nations. The FTA, one of the largest agreements, is set to be enacted on July 15, nearly a year after its signing. The Comprehensive Economic and Trade Agreement (CETA) will see the UK eliminate tariffs on numerous Indian exports while safeguarding India's dairy, cereals, oilseeds, and vegetable sectors. This deal is projected to enhance India's GDP by approximately £5.1 billion annually and the UK's GDP by around £4.8 billion. According to the GTRI, Indian exports valued at about USD 775 million may be impacted by the UK's proposed carbon tax on products like iron and steel, aluminum, fertilizer, and cement.