As discussions around the India–UK Free Trade Agreement (FTA) advance, one key proposal under consideration is the implementation of a Double Contribution Avoidance Arrangement (DCAA) — a bilateral framework addressing social security liabilities for short-term assignees.

Key Features of the DCAA Proposal:

🔹 Applicable to professionals deployed for temporary assignments (up to 36 months)
🔹 Ensures exclusive contribution to the home country’s social security scheme
🔹 Waives mandatory enrolment in host country social insurance during the assignment
🔹 Reciprocal structure benefitting both Indian and UK outbound professionals

Strategic Implications for Businesses and Assignees:

🔸 Eliminates duplicate contributions to EPF (India) and National Insurance (UK)
🔸 Reduces total cost of employment by up to 20% in the host country
🔸 Enhances net-of-tax compensation and improves assignment ROI
🔸 Facilitates greater labor mobility and HR compliance predictability

The DCAA is poised to be a high-impact policy shift, aligning with global best practices and removing structural frictions in cross-border deployments. As Commerce Minister Piyush Goyal engages with UK counterparts on the FTA roadmap, formalizing this framework could significantly boost India-UK business synergy.