NIM33258 - Special Cases: India - Detached Workers
Social security agreement between the UK and India: Detached workers
Articles 8(1) - (7) of the India Agreement
Article 8(1) of the Agreement provides that where a person is:
· an employed person in one country (the home country);
· working for an employer which normally carries out its activities in the home country;
· sent by their employer to work in the other country (the host country) from the home country; and
· the employed activity in the host country is not expected to exceed 36 months,
then the employed person will only be subject to their home country’s social security legislation and when a person is subject to the legislation of the UK, they will be treated as carrying out the employed activity in India as if it were in the UK.
This means that where an employed person working in the UK is sent by their employer to work temporarily in India for no more than 36 months, they will remain subject to UK social security legislation and liable to pay UK NICs on the earnings earned in India.
Article 8(2) makes provision for those persons where the anticipated duration of their employment in the host country does not exceed 36 months at the outset. Where:
· the anticipated duration at the outset is less than 36 months; and
· it is subsequently increased to 36 months or beyond
the employed person will remain subject to their home country’s legislation from the date they start working in the host country, until the employment in the host country ends or reaches 36 months, whichever is sooner.
Article 8(3) of this agreement requires that for the purposes of Article 8(1), “a person who pursues an activity as an employed person in one State” (that is, either the UK or India), is someone who pays or is liable to pay, contributions under the relevant country’s legislation.
The UK and India have decided that for Article 8 to apply, the employee must have been subject to the legislation of the home country for at least 30 days prior to going from the home country to the host country or there must have been paid employer and employee contributions in respect of the employment (that is, primary and secondary Class 1 NICs in respect of the UK) for the calendar month before the commencement of the period of detachment.
Article 8(4)(a) and (b) provide that for the purpose of Article 8(1) a “person who pursues an activity as an employed person in one State on behalf of an employer which normally carries out its activities there, and who is sent by that employer to the other State to perform work on that employer’s behalf” includes:
· a person sent by their employer from a third country, as long as they were paying, or liable to pay contributions, under the legislation of the home country immediately prior to being sent to work in the host country; and
· a person who has made a personal choice to work temporarily in the other country as long as their employer agrees to this. For example, someone who wishes to join their partner overseas and whose employer agrees to this request.
Article 8(5) provides for a “waiting period” between periods of detachment. Where a person completes a period of detachment under the provisions in Article 8(1) and is subsequently sent to the host country again, they cannot satisfy the conditions in Article 8(1) until a period of six months has elapsed. If their previous period in the host country was less than six months the “waiting period” will be the same length of time as the previous period of work in the host country. For example, if the previous detachment was for four months, the waiting period before a new period of work under Article 8(1) can commence will also be four months.
Where a person satisfies the conditions of Article 8(1) and is subject to UK legislation while working in India, Articles 8(6) provides for that employment to be treated as if it is undertaken in the UK. Both the employee and the employer will pay Class 1 NICs on the total earnings and profits from this employment.
Where a person satisfies the conditions of Article 8(1) and is subject to Indian social security legislation while working in the UK, Article 8(7) provides that the person, and their employer, shall pay Indian contributions on the total of their wages. For these purposes, “wages” is defined in section 2(88) of India’s Code on Social Security, 2020 or, where the person is subject to any other Indian legislation within scope of this agreement under Article 2(1)(b), as defined in that other legislation.
Example
Phil is employed in the UK by a company which normally carries on its activities in the UK. Phil pays UK NICs. Phil’s employer sends him to India to undertake a contract which is due to last for 18 months.
As Phil satisfies all of the conditions in Article 8(1), Phil is subject to UK social security legislation. In accordance with Article 8(6), when applying UK social security legislation, he will be treated as if he is employed in the UK, even though he is working in India. Phil, and his employer, will pay UK NICs on all of his earnings from his employment.
Phil will not be liable to pay Indian social security contributions on the earnings from the employment in India.
Example
Lila is employed in India by a company which normally carries on its activities in India. She pays social security contributions in India. Lila’s employer sends her to the UK to undertake a contract which is due to last for 36 months.
As Lila satisfies all of the conditions in Article 8(1), she will be subject to Indian social security legislation. In accordance with Article 8(7), Lila, and her employer, will be required to pay social security contributions in India on the total amount of her wages.
Lila will not be liable to pay UK NICs on the earnings from the employment in the UK.
Example
Charlie is ordinarily resident in the UK and employed by a company with a place of business in the UK. Charlie’s employer sends him to work in Australia for 10 months and he remains liable to pay UK NICs under Regulation 146 of the Social Security (Contributions) Regulations 2001(SSCR 2001).
After 7 months in Australia, Charlie’s employer sends him to India to undertake a contract which is due to last for 2 years. As Charlie’s situation falls within Article 8(4)(a), Charlie is considered to be a detached worker and is subject to UK social security legislation under Article 8(1). Under Article 8(6) of the agreement, UK legislation applies to Charlie as if he were carrying out all of his employed activities in the UK. Charlie is therefore liable to pay Class 1 NICs on all of his earnings from that employment.
Example
Kiara is employed in the UK for an employer that normally carries out its activities in the UK. Kiara pays UK NICs. Kiara agrees with her employer to work temporarily in India for 24 months, where she has elderly family.
As Kiara’s situation falls within Article 8(4)(b), Kiara is considered to be a detached worker and is subject to UK social security legislation under Article 8(1). Under Article 8(6) of the agreement, UK legislation applies to Kiara as if she were carrying out all of her employed activities in the UK. Kiara is therefore liable to pay Class 1 NICs on all of her earnings from that employment.
After 12 months working in India, Kiara and her employer agree that this arrangement can be extended to 40 months of work in India in total. In accordance with Article 8(2), Article 8(1) will continue to apply to Kiara until she has worked in India for 36 months. Once the 36 months period has expired, Kiara will be subject to the social security legislation of India under Article 7(2).
Example
Mark is employed in the UK by a company which normally carries on its activities in India. He pays UK NICs. Mark’s employer sends him to India to undertake a contract which is due to last for 36 months. As Mark satisfies all of the conditions in Article 8(1), Mark is subject to UK social security legislation. In accordance with Article 8(6), when applying UK social security legislation, Mark will be treated as if he is employed in the UK, even though he is working in India. Mark, and his employer, will pay UK NICs on all of his earnings from his employment.
Mark will not be liable to pay Indian social security contributions on the earnings from the employment in India.
Mark returns to the UK at the end of 36 months, however, 4 months later, his employer needs Mark to return to India for a further period of 10 months. As it has been less than six months since Mark relied on Article 8(1) of the Agreement, he does not satisfy the 6 months “waiting period” in Article 8(5). Mark cannot therefore be subject to UK legislation under Article 8(1) when he returns to India. Mark will be subject to Indian social security legislation under Article 7.
Example
Linda is ordinarily resident in the UK and was sent to work in India on 1 December 2025 by her employer who has a place of business in the UK. As Linda was ordinarily resident in the UK immediately before going to India, Linda meets the conditions in regulation 146 SSCR 2001 and is liable to pay Class 1 NICs for her first 52 weeks of employment in India. However, from the date the agreement comes into force, Linda will become subject to Indian social security legislation only under Article 7(2), the general rule. She will cease being liable to pay Class 1 NICs from this date.