What if I come from a country with which the UK has a social security agreement?
Migrants, who come to the UK on assignment from a country with which the UK has a reciprocal social security agreement or a double contributions convention (DCC) which covers contributions, may not have to pay NIC under the terms of the specific agreement. We explain further below.
For more information, go to HM Revenue and Customs’ (HMRC) guidance, RDR1, chapter 11. You can find this on the GOV.UK website.
Do I have to pay National Insurance contributions (NIC) in the UK?
Migrants, who come to the UK from a country with which the UK has a reciprocal social security agreement or a double contributions convention (DCC) which covers contributions, may not have to pay NIC under the terms of the specific agreement. The countries with which the UK has such agreements are listed on the GOV.UK website.
You need to consider the terms of the applicable agreement to determine the rules that apply – the applicable agreement is the agreement between the UK and the country to which the employee used to pay contributions. In general, these agreements provide that the migrant has to pay NIC unless:
- they were employed by their employer in the country from which they came to the UK;
- they were insured under the social security legislation of that country; and
- they were sent to the UK by that employer to work in the UK for a time expected to last no more than the time specified in the agreement.
If you are normally self-employed in a country that has an applicable social security agreement with the UK, and you will also be self-employed in the UK, you may not have to pay UK NIC. Instead, you may remain in your home country social security system.
If appropriate your home country will issue you with a certificate to confirm that whilst working in the UK you should continue to pay contributions to that country and are exempt from paying UK NIC.
In most cases, migrants are hired in the UK, so these rules do not apply and the migrant has to pay NIC.
Am I eligible for UK social security benefits?
For migrants covered by a reciprocal agreement, contributions paid to the social security authorities of the UK and the home country in accordance with the agreement are all counted when determining eligibility for benefits payable by each country. The agreement contains detailed rules for different types of benefit, and information on whether an employee will receive benefits from the UK or from their home country.
For migrants covered by a DCC (Japan and the Republic of Korea) contributions paid to each country will count towards benefits in that country only, according to each country's own rules. There is no amalgamation of contributions for benefit purposes.
What happens to my NIC if I return to a country with which the UK has a reciprocal social security agreement?
Even if you do not claim any benefits in the UK, or are here for just a short time, you cannot usually reclaim NIC when you leave.
The NIC is not strictly transferable to another country's scheme either; however, it may help to determine eligibility to state benefits in that other country.
There are special rules if you come to the UK from one of the countries with which the UK has a social security agreement. Details of how NIC works for someone who has worked in the UK can be found in the individual social security agreements.
There is a list of countries with which the UK has social security agreements on the GOV.UK website. You should contact the International Pension Centre for more information on the position if you go to such a country.