European Union: New Social Security Rules for Cross-border Remote Workers

Representatives of many EU Member States have proposed a framework agreement for the adoption of new social security rules that will primarily impact cross-border remote workers that live and work in their EU Member State of residence, but whose employer’s registered office is in another EU Member State. The proposal states that such workers would remain affiliated with the social security system of the country of their employer, provided they work less than 50% of total working time in their country of residence. In absence of a new legal provision for tele-workers in the EU social security coordination regulations, this agreement intends to meet the current requirements of cross-border remote workers, offering an efficient and expedited issuance of A1 certificates. The framework agreement will likely hold a five-year validity and will enter into force among the EU Member States that will have signed the agreement on July 1, 2023. The current rules in the EU regulations for multi-state workers in the European Union will continue to apply to remote workers in EU Member States that do not sign the agreement.