A landmark trade deal has been reached between the UK and India, but there are some concerns about the national insurance concessions included by Indian workers.
The UK government claims the deal is a win for workers and UK operations, pointing out that tariffs on goods such as whiskey, gin and chocolate have been lowered.
It has been a deal since 2022 and has been touted as a “good of the Greater Brexit”. guardian. However, since the announcement of “political fireworks”. politicsthe feeling of social security or national insurance payments provided to Indian workers in the UK.
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What is a NI franchise?
Politico said the UK-India trade agreement includes the so-called “double donation conference” and that “neither Indian nor British workers need to pay national insurance contributions in their home country and in the country they work for.” Instead, workers only need to pay in one country during the first three years of resettlement.
However, the news means that ministers have “stayed on defense.” eraas critics say, Indian workers will “pay less taxes than they do for the same job”.
The government controversially increased employer NI payments during the fall budget.
Conservative leader Kemi Badenoch described the NI problem in the UK-India trade agreement as “two-layered taxes for two-layered Keir.”
Will Indian workers get better deals?
Commerce Secretary Jonathan Reynolds insists that the deal “will not affect British workers”. BBCsaid the UK has 16 agreements designed to prevent “double taxation”. Such agreements cover more than 50 countries, including the United States, the European Union and South Korea.
Influential Conservative figures such as Oliver Dowden and former Brexit Minister Steve Baker also supported the deal. guardianemphasizing that the opt-out of seconded workers is “a routine in trade transactions.”
Delhi also argued that its workers “will not receive any benefits that national insurance should pay”, such as pension and benefits payments.
The exemption also does not apply to all Indian nationals working in the UK all“although it’s not clear yet.”
Trade Minister Douglas Alexander told LBC The exemption will be used for “a very specific and limited group of Indian businessmen within three years”.
FullFact said Indian workers seconded here will still have to pay British immigration health surcharges to NHS care. In addition, the arrangements are mutual. Therefore, British workers sent to work in India will benefit because “they don’t have to make up to three years of Indian Social Security payments”.
