UPSC Prelims Practice Questions — India-U.K. social security pact is not retrospective

Q1. With reference to the exemption granted to detached workers under the India-U.K. Double Contributions Convention (DCC), consider the following: 1. The exemption from host-country social security contributions lasts up to 60 months. 2. It applies reciprocally to Indian workers in the U.K. and British workers in India. 3. The exemption operates automatically and requires no certificate of coverage. 4. It removes the requirement to pay social security contributions in both countries simultaneously. Which of the above is/are correctly identified?

  1. The exemption from host-country social security contributions lasts up to 60 months.
  2. It applies reciprocally to Indian workers in the U.K. and British workers in India.
  3. The exemption operates automatically and requires no certificate of coverage.
  4. It removes the requirement to pay social security contributions in both countries simultaneously.
  • A. 1, 2 and 4
  • B. 1 and 3
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q2. Consider the following statements comparing the India-U.K. DCC exemption with earlier positions: 1. The DCC raises the detached-worker exemption from the three years announced at the CETA's conclusion to five years. 2. Absent any agreement, standard U.K. rules exempted a detached worker from National Insurance for only 52 weeks. 3. The DCC's 60-month exemption is available only to Indian workers in the U.K. and not to British workers in India. Which of the statements given above is/are correct?

  1. The DCC raises the detached-worker exemption from the three years announced at the CETA's conclusion to five years.
  2. Absent any agreement, standard U.K. rules exempted a detached worker from National Insurance for only 52 weeks.
  3. The DCC's 60-month exemption is available only to Indian workers in the U.K. and not to British workers in India.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. In the context of the India-U.K. Double Contributions Convention (DCC), the statement that it is 'not retrospective' most precisely means which one of the following?

  • A. It applies only to employees arriving in the U.K. on or after 15 July 2026, while those already working there before that date remain subject to normal U.K. National Insurance rules.
  • B. It refunds the National Insurance already paid by Indian workers before 15 July 2026.
  • C. It applies only to contributions made after five years of continuous work in the U.K.
  • D. It exempts all Indian workers in the U.K. with effect from the date the CETA was signed in 2025.

Q4. With reference to the non-retrospective scope of the India-U.K. DCC, consider the following: 1. Indian employees arriving in the U.K. on or after 15 July 2026 may be treated as detached workers. 2. Indian employees already working in the U.K. immediately before 15 July 2026 continue to pay U.K. National Insurance. 3. An employee who arrived before 15 July 2026 is reclassified as a detached worker with effect from the original date of arrival. 4. The DCC exempts a qualifying detached worker from U.K. National Insurance for up to 60 months. Which of the above is/are NOT correct?

  1. Indian employees arriving in the U.K. on or after 15 July 2026 may be treated as detached workers.
  2. Indian employees already working in the U.K. immediately before 15 July 2026 continue to pay U.K. National Insurance.
  3. An employee who arrived before 15 July 2026 is reclassified as a detached worker with effect from the original date of arrival.
  4. The DCC exempts a qualifying detached worker from U.K. National Insurance for up to 60 months.
  • A. 1 only
  • B. 2 and 4
  • C. 3 only
  • D. 4 only

Q5. Which of the following are correctly identified with reference to the India-U.K. CETA and its companion DCC? 1. CETA — signed in July 2025. 2. DCC — signed on 10 February 2026. 3. CETA and DCC — entered into force on 15 July 2026. 4. DCC — negotiated and administered on the Indian side by the Ministry of External Affairs. Which of the above is/are correctly identified?

  1. CETA — signed in July 2025.
  2. DCC — signed on 10 February 2026.
  3. CETA and DCC — entered into force on 15 July 2026.
  4. DCC — negotiated and administered on the Indian side by the Ministry of External Affairs.
  • A. 1, 2 and 3
  • B. 1 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q6. Under the India-U.K. DCC, the 'certificate of coverage' that entitles an Indian detached worker to exemption from U.K. National Insurance is issued in India by which one of the following?

  • A. Employees' Provident Fund Organisation (EPFO)
  • B. Employees' State Insurance Corporation (ESIC)
  • C. Pension Fund Regulatory and Development Authority (PFRDA)
  • D. Directorate General of Foreign Trade (DGFT)

Q7. The benefits available to covered workers under an Indian Social Security Agreement — detachment, totalisation and exportability — are grouped by the Government under how many broad heads?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q8. In the context of social security agreements, who is a 'detached worker'?

  • A. An employee sent by their home-country employer on a temporary foreign assignment who continues to be covered under the social security system of the home country.
  • B. Any citizen of one country who takes up permanent employment in the other country.
  • C. A worker who has severed all social security ties with the home country upon moving abroad.
  • D. Every foreign national employed in the host country, irrespective of the duration of stay.

Q9. The India-U.K. Comprehensive Economic and Trade Agreement (CETA) was negotiated and is operationalised on the Indian side principally by which one of the following?

  • A. Ministry of Commerce and Industry
  • B. Ministry of External Affairs
  • C. Ministry of Finance
  • D. Ministry of Labour and Employment

Q10. Which of the following are correctly identified as features of the India-U.K. CETA? 1. The U.K. will eliminate duties on about 99% of Indian tariff lines on entry into force. 2. India has opened about 89.5% of its tariff lines, covering roughly 91% of U.K. exports. 3. India will immediately grant duty-free access to 99% of U.K. exports. 4. CETA covers trade in goods and services as well as digital trade. Which of the above is/are correctly identified?

  1. The U.K. will eliminate duties on about 99% of Indian tariff lines on entry into force.
  2. India has opened about 89.5% of its tariff lines, covering roughly 91% of U.K. exports.
  3. India will immediately grant duty-free access to 99% of U.K. exports.
  4. CETA covers trade in goods and services as well as digital trade.
  • A. 1, 2 and 4
  • B. 1, 3 and 4
  • C. 2 and 3
  • D. 1, 2, 3 and 4

Q11. Absent the DCC exemption, an Indian professional on a temporary assignment in the U.K. must pay that country's principal social-security contribution. Which one of the following is it?

  • A. National Insurance contributions
  • B. Pay As You Earn (PAYE) income tax
  • C. Council Tax
  • D. Value Added Tax (VAT)

Q12. Consider the following statements about U.K. National Insurance (NI) and the DCC: 1. U.K. National Insurance contributions are payable by both the employee and the employer. 2. The DCC, besides exempting detached workers from contributions, also entitles them to draw the U.K. State Pension. 3. Before the DCC, an Indian detached worker in the U.K. was liable to pay National Insurance once the standard exemption period lapsed. Which of the statements given above is/are correct?

  1. U.K. National Insurance contributions are payable by both the employee and the employer.
  2. The DCC, besides exempting detached workers from contributions, also entitles them to draw the U.K. State Pension.
  3. Before the DCC, an Indian detached worker in the U.K. was liable to pay National Insurance once the standard exemption period lapsed.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3