The Government in UK has dashed the hopes of lakhs of Indian employees-working on a temporary basis in UK-stating that it could not enter into a social security totalization pact. This agreement exempts Indian employees in UK from paying social security taxes if they paid the same in India. In short, it’s a step to stop double payments. The UK has said that it could not enter into the agreement citing the fiscal pressure it has been facing post global recession.

The social security amount can be withdrawn only after a period of ten years and the temporary employees in UK pay huge amounts to the country, which they could not withdraw as most of them leave the country before ten years.

It has to be mentioned here that the Indian Government has took up the issue seriously to shield the temporary employees in UK, but to no avail.  It may be recalled that India earlier entered into such deals with countries such as France, Germany , Netherlands and Belgium.

As of now there are over five lakh temporary employees in UK and they are making double contributions—one towards the social security and other towards the employee provident fund.

Financial experts are of the opinion that UK doesn’t want to lose thousands of pounds that it receives from foreign temporary employees.