--- title: "The 60-Month Rule: How the India–UK Social Security Agreement Could Reshape Employee Secondments" date: 2026-07-22 author: "Rohitaashv Sinha" url: https://ksandk.com/labour-employment/the-60-month-rule-how-the-india-uk-social-security-agreement-could-reshape-employee-secondments/ --- # The 60-Month Rule: How the India–UK Social Security Agreement Could Reshape Employee Secondments Posted On - 22 July, 2026 • By - Rohitaashv Sinha ![](https://ksandk.com/wp-content/uploads/India–UK-Social-Security-Agreement-Could-Reshape-Employee-Secondments-.webp) ### **What the India–UK Double Contributions Convention Means for Employers, GCCs, IT Companies and Internationally Mobile Employees** The movement of professionals between India and the United Kingdom has long been an important feature of the economic relationship between the two countries. Indian technology companies send employees to the UK to implement projects and work with clients. UK multinationals second senior executives and specialists to Indian subsidiaries. Consulting, engineering, financial services and professional services firms routinely deploy personnel across both jurisdictions.  For employers, however, international assignments often create an additional and sometimes significant cost: the possibility of mandatory social security contributions becoming payable in both the employee’s home country and the country where the employee is temporarily working.  The India–UK Double Contributions Convention (“DCC”), which entered into force alongside the India–UK Comprehensive Economic and Trade Agreement (“CETA”) on 15 July 2026, seeks to address this long-standing issue.  At the centre of the new framework is a significant rule for internationally mobile employees:  **Qualifying employees temporarily posted between India and the UK may, subject to the conditions of the Convention, continue to remain covered under their home country’s social security system for assignments of up to 60 months.**  For businesses with substantial India–UK workforce mobility, the commercial implications may be considerable. However, the 60-month rule should not be misunderstood. It is **not** a tax exemption. It is **not** an immigration or visa concession. Nor does it automatically exempt every Indian employee working in the UK or every UK employee working in India from host-country social security contributions.  The availability of relief depends on the employee satisfying the conditions prescribed under the Convention and the applicable domestic laws of both countries. Employers should therefore view the DCC not merely as an HR development but as an opportunity to reassess how international assignments between India and the UK are structured.  ## **Why Was the Double Contributions Convention Needed?** Employees on international assignments can potentially become connected with two separate social security systems. While they may continue to maintain their employment relationship and social security coverage in their home country, their temporary work in the host country may also trigger mandatory contribution obligations there.  This overlap can result in duplicate contributions for essentially the same period of employment, increasing employment costs without necessarily providing proportionate additional benefits. The issue is particularly relevant in the India–UK corridor, where thousands of professionals move between the two countries each year across sectors such as:  - Information Technology and IT-enabled services;   - Consulting and professional services;   - Financial services;   - Engineering and manufacturing;   - Infrastructure and construction;   - Research and development;   - Pharmaceuticals and life sciences; and   - Global Capability Centres (GCCs).   The DCC is intended to eliminate or reduce this duplication by determining which country’s social security legislation should apply during qualifying temporary assignments.  ## **Understanding the 60-Month Rule** The Convention provides that employees who are temporarily posted by their employer to work in the other country may continue to remain subject to their home country’s social security legislation for a period of up to 60 months, provided the applicable conditions are satisfied.  In practical terms, this means that an employee who qualifies under the Convention may continue contributing only to the home country’s social security system during the period of the temporary assignment, instead of simultaneously contributing under the host country’s mandatory regime.  For example, an Indian technology company may second an employee to the UK for a three-year client implementation project. If the employee satisfies the conditions prescribed under the Convention, the employee may continue to remain covered under India’s Employees’ Provident Fund framework, without becoming liable to make corresponding UK social security contributions solely because of the temporary posting.  Similarly, qualifying UK employees temporarily assigned to India may continue to remain covered under the UK’s social security system without becoming subject to duplicate Indian social security obligations during the eligible period. This reciprocal approach is intended to reduce employment costs while preserving continuity of social security coverage.  ## **The Relief Is Not Automatic** One of the most important aspects of the Convention is that the exemption is conditional, not universal. Employers should not assume that every cross-border assignment automatically qualifies. Eligibility will generally depend on several factors, including:  - whether the assignment is genuinely temporary;   - whether the employee remains employed by the sending employer;   - the anticipated duration of the posting;   - compliance with the procedural requirements under the Convention; and   - obtaining the necessary certificate or documentary evidence demonstrating continued coverage under the home country’s social security legislation.   Assignments that are extended beyond the prescribed period, substantially restructured, or otherwise fall outside the Convention’s scope may not qualify for relief. Careful planning before the commencement of the assignment is therefore essential.  ## **Commercial Benefits for Employers** The DCC has the potential to materially improve the economics of international mobility programmes. For employers operating large cross-border workforces, duplicate social security contributions can represent a significant component of assignment costs. The Convention may therefore offer several commercial advantages:  - reduced employment costs for qualifying assignments;   - greater certainty in budgeting international secondments;   - simplified payroll and mobility planning;   - improved competitiveness when bidding for cross-border projects; and   - enhanced flexibility in deploying specialised personnel between India and the UK.   These benefits may be particularly valuable for Indian IT companies, engineering businesses, consulting firms, financial institutions and multinational corporations that regularly deploy employees across jurisdictions.  The Convention may also strengthen India’s attractiveness as a destination for Global Capability Centres, many of which depend upon the temporary movement of senior management, technical experts and specialised personnel between global headquarters and Indian operations.  ## **Employees Also Stand to Benefit** The Convention is not solely advantageous for employers. Employees may also benefit from continuity of social security coverage during temporary overseas assignments. Remaining within the home country’s social security framework can provide greater certainty regarding retirement savings and contribution history while reducing the administrative complexity associated with participating in two separate systems for a limited assignment.  It may also eliminate concerns regarding contributions made into a foreign social security system where the employee may not ultimately satisfy the qualifying conditions for receiving long-term benefits.  ## **Practical Considerations Before Relying on the Convention** Although the DCC creates valuable opportunities, businesses should avoid treating the 60-month rule as a standard feature of every international assignment. Instead, organisations should review their mobility programmes holistically. Key questions include:  - Does the proposed assignment satisfy the Convention’s eligibility criteria?   - Has the appropriate certificate of coverage or equivalent documentation been obtained before deployment?   - Will the anticipated assignment remain within the 60-month limit?   - Are payroll, immigration and employment documentation aligned with the structure of the secondment?   - What happens if the assignment is extended or converted into permanent local employment?   Addressing these issues at the planning stage can significantly reduce compliance risks later in the assignment.  ## **Looking Beyond Payroll Savings** While much of the attention surrounding the DCC has focused on cost savings, its broader significance lies in facilitating cross-border business mobility. The India–UK economic relationship increasingly depends on the seamless movement of skilled professionals across technology, financial services, consulting, engineering, manufacturing and innovation-driven sectors.  By reducing one of the long-standing financial barriers associated with temporary postings, the Convention supports greater workforce mobility while providing employers with increased certainty over international assignment costs. As businesses begin implementing the India–UK CETA framework, the Double Contributions Convention is likely to become an important component of cross-border workforce planning.  Organisations that regularly second employees between India and the UK should therefore review their existing mobility policies, assignment structures, payroll arrangements and compliance processes to ensure they are positioned to fully utilise the benefits available under the Convention while satisfying its procedural requirements.  ## **Conclusion** The India–UK Double Contributions Convention represents a significant development for businesses operating across one of the world’s busiest professional mobility corridors. Although the much-discussed 60-month rule offers meaningful relief from duplicate social security contributions for qualifying temporary assignments, its benefits are neither automatic nor universal. Employers must carefully assess eligibility, comply with procedural requirements and ensure that assignment structures remain consistent with the Convention.  For organisations with substantial India–UK operations—including IT companies, Global Capability Centres, multinational enterprises and professional services firms—the Convention presents an opportunity not only to reduce employment costs but also to modernise international mobility strategies in line with the new trade framework established under the India–UK CETA.  *Last Updated on 22 July, 2026* Get King Stubb & Kasiva’s legal updates in your Google feed[![Add King Stubb & Kasiva as a preferred source on Google](https://ksandk.com/wp-content/uploads/google_preferred_source_badge_light_en@2x.png)](https://www.google.com/preferences/source?q=https://ksandk.com/) --- ## Office Locations - [New Delhi](https://ksandk.com/locations/top-corporate-law-firm-in-delhi/) (HQ): +91-11-41318190 | info@ksandk.com - [Mumbai](https://ksandk.com/locations/top-corporate-law-firm-in-mumbai/): 3 offices (Nariman Point, Lower Parel, Andheri) | mumbai@ksandk.com - [Bangalore](https://ksandk.com/locations/top-corporate-law-firm-in-bangalore/): bangalore@ksandk.com - [Chennai](https://ksandk.com/locations/chennai/): chennai@ksandk.com - [Hyderabad](https://ksandk.com/locations/hyderabad/): hyderabad@ksandk.com - [Pune](https://ksandk.com/locations/pune/): pune@ksandk.com - [Kochi](https://ksandk.com/locations/kochi/): kochi@ksandk.com ## Contact - [Contact Page](https://ksandk.com/contact-us/) - General: info@ksandk.com | +91-11-41318190 - WhatsApp: +91-7428567444 - [Privacy Statement](https://ksandk.com/privacy-statement/) - [Terms of Use](https://ksandk.com/terms-of-use/)