NIM33262 - Special Cases: India - Exceptions
Social security agreement between the UK and India: Modification provisions
Article 12 of the India Agreement
The competent institutions, being HMRC in the UK and the Employees’ Provident Fund Organisation in India, or the bodies designated by these institutions, can agree to provide for exceptions to the provisions in Articles 7 to 11 in the interests of certain persons or categories of persons.
This is sometimes referred to as the “exception, derogation or escape” clause.
The UK and India have decided that a request for the UK and India to agree an exception to the rules under Article 12 should be made, wherever possible in advance, to the competent institution of the country whose legislation it is requested be applied.
HMRC and the Employees' Provident Fund Organisation (EPFO) have jointly agreed that for those employees already in the UK or India on the date that the agreement entered into force, 15 July 2026, Article 12 can be used in certain cases to maintain the pre-agreement position from the entry into force date of the agreement up to 52 weeks from the date their temporary period of work in the other country started.
This will apply to a person who, on or after 15 July 2025, but before 15 July 2026 was:
sent by their employer to carry out a temporary employed activity in the UK or India, or agreed with their employer that they would carry out their employed activity there, and
whose employer normally carries out their activities in the UK if the temporary employed activity is in India or in India if the temporary employed activity is in the UK.
This means that:
Indian employees who were already temporarily working in the UK on 15 July 2026 will not be subject to UK social security legislation until they have been working in the UK for 52 weeks. They do not need a certificate of coverage from the Indian authorities to demonstrate this. They will become subject to UK social security legislation and start to pay Class 1 NICs from the start of the contribution week following the 52-week exemption period.
UK workers in India on 15 July 2026 can request a UK certificate of coverage in respect of Article 12 to continue to pay UK NICs for the remainder of their first 52-weeks period of work in India, should they wish to continue paying Class 1 NICs for this period.
Example
Raj normally works in India for an India based employer. He arrived in the UK on 1 January 2026 and was exempt from the payment of Class 1 NICs as he satisfied the conditions in Regulation 145(2) SSCR 2001. Under this Article 12 agreement, Raj will continue to be subject to Indian legislation and will not have to pay UK NICs until 1 January 2027. Raj will not need to apply for a certificate of coverage from the Indian authorities.
Example
Nick normally works in the UK for a UK based employer. He arrived in India on 1 January 2026 and was liable for the payment of Class 1 NICs for his first 52 weeks in India under the provisions of Regulation 146 SSCR 2001. Under this Article 12 agreement, Nick, or his employer, can apply to HMRC for an exception to remain liable to pay UK NICs for the period until 31 December 2026. If he applies for, and receives a certificate, Nick will continue to pay Class 1 NICs until 31 December 2026. Nick will become subject to Indian social security legislation from 1 January 2027.