UK-India Article 12 deal shields posted staff to 52-week point

HMRC and India's Employees' Provident Fund Organisation (EPFO) have jointly agreed to use Article 12 of the UK-India social security agreementGOV to protect employees who were already working temporarily in the other country when the agreement entered into forceGOV on 15 July 2026GOV. For those employees, the pre-agreement National Insurance position is maintained from the entry into force date until they have completed 52 weeks of their temporary period of work in the other countryGOV.

The arrangement covers 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 other country, or agreed that with their employer, provided the employer normally operates in the home countryGOV. Article 12 allows HMRC and the EPFO, or bodies they designate, to agree exceptions to Articles 7 to 11 for certain persons or categoriesGOV, with requests made wherever possible in advance to the institution of the country whose legislation is sought.

Indian employees who were already temporarily working in the UK on 15 July 2026 are not subject to UK social security legislation until they have been working in the UK for 52 weeksGOV. They do not need a certificate of coverage from the Indian authorities to demonstrate thisGOV, and they become subject to UK social security legislation and start paying Class 1 National Insurance contributions from the start of the contribution week following the 52-week exemption periodGOV. UK workers who were in India on 15 July 2026 may instead request a UK certificate of coverage in respect of Article 12GOV so that they continue to pay UK National Insurance contributions for the remainder of their first 52-week period of work in India, should they wish to keep paying Class 1 contributions for that periodGOV.

The worked examples show how this operates. Raj normally works in India for an India-based employer, arrived in the UK on 1 January 2026 and was exempt from Class 1 contributions as he satisfied Regulation 145(2) of the Social Security (Contributions) Regulations 2001; under the Article 12 agreement he remains subject to Indian legislation and pays no UK contributions until 1 January 2027, with no Indian certificate needed. Nick normally works in the UK for a UK-based employer, arrived in India on 1 January 2026 and was liable for Class 1 contributions for his first 52 weeks there under Regulation 146; he or his employer may apply to HMRC for an exception to remain liable for UK contributions until 31 December 2026, and with a certificate he keeps paying Class 1 contributions until then, becoming subject to Indian legislation from 1 January 2027.

Alongside the exception, the transitional position confirms that employees already working in India when the agreement took effect fall under Indian legislation under Article 7(2)GOV rather than detached-worker treatment under Article 8GOV, so any Class 1 liability under Regulation 146 for the first 52 weeks endsGOV; while subject to Indian legislation they cannot pay voluntary contributions for the corresponding periodLegislation. Employees already working in the UK, including anyone then exempt under Regulation 145(2)GOV, fall under UK legislation under Article 7(2)GOV with the same Article 8 exclusionGOV, subject to the Article 12 52-week protection aboveGOV.

Legal basis: the UK-India Agreement on Social Security (Articles 7, 8, 12 and 13), given effect by the Social Security (Contributions) (Republic of India) Order 2026Legislation, alongside Regulations 145(2) and 146 SSCR 2001.