Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the 36-month National Insurance exemption under the UK–India Double Contributions Convention on the competitiveness of UK-based recruitment of domestic staff in the technology sector.

The Convention will prevent the double payment of social security contributions and will not make it cheaper to hire Indian workers over British workers. While working in the UK, Article 8(7) requires Indian detached workers to pay contributions into India’s social security scheme (the Employees’ Provident Fund Scheme). The rates applying are broadly the same as those applied in the UK National Insurance system, meaning contributions will be similar. Indian detached workers would additionally be subject to visa application fees and may also be subject to the Immigration Health Surcharge.