Social security update – teleworking (EU)

We have learned that the EU ad hoc working group for telework has reached an agreement on a new rule for cross border commuters working from home.

If the homeworking activities are below 50% of the total working time, the frontier worker can remain subject to the social security regime of the country where the employer is located and employment activities are performed.

This is a substantial extension of the current 25% threshold. So, for example an employee living in Belgium with a Dutch employer, can work in the future for 49% from home and still the Dutch social security will remain in place.

We note that during COVID the 25% threshold was relaxed by certain countries but that this interim measure will end per 30 June 2023.

We understand that an A1 can be applied for based on article 16 of Regulation 883/2004. This A1 serves as proof that the social security legislation of the country where the employer is located is applicable.

We expect more details and guidelines via official communications. We also note that each member state needs to agree with this approach. It is expected that the Netherlands will agree with this amendment.

Please note the income tax implications are regulated via tax treaties. Therefore, the above-mentioned change will only affect the social security position.

We will keep you updated.

Sources:

SVB: Telewerken | SVB

Letter Ministry of Social Affairs: Geannoteerde agenda Informele Raad WSBVC 3 en 4 mei 2023 | Kamerstuk | Rijksoverheid.nl  (see section: update over telewerken en sociale zekerheid in Europees verband).