India-UK social security pact was non-negotiable in free trade deal: Piyush Goyal
India-UK social security agreement
was made a non-negotiable part of the
free trade agreement (FTA)
discussions two years ago, commerce and industry minister
Piyush Goyal
said on Wednesday.
Termed the
Double Contribution Convention Agreement (DCCA)
, it was agreed to along with the FTA between the two countries in May.
"It was on the table for the last three years to bring balance and equity and balance to the trade deal between the two economies," Goyal said at an event in London. The minister is on a two-day visit to London from Wednesday.
The agreement exempts Indian professionals and their employers from paying
social security contributions
in the UK for short-term assignments of up to three years. The pact will allow temporary Indian workers in UK to pay their social security contributions in India for the first year and for two years nothing will be collected from them.
At the same event,
UK secretary of state for business and trade
Jonathan Reynolds said it is a
business mobility provision
which the UK has with every country for persons coming temporarily for business or MNCs posting staff in UK. "With 50 other countries we have extended the provision. It is reciprocal so UK nationals employed by those companies in India pay into our system (for one year)."
Goyal said since temporary professionals stay less than the 10 year threshold to qualify for receiving benefits against their social security contributions in the UK, this money otherwise won't be paid back to them.
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