In June 2022, due to the crisis caused by COVID-19, the Administrative Commission of the European Union extended the so-called "Non-impact COVID Agreement/Policy" in relation to social security applicable to cross-border workers in the European Union until 31 December 2022.
Taking into account the current situation of many cross-border workers and the rise of international teleworking, the Commission has decided to extend this Agreement again until 30 June 2023.
What does this measure mean?
That cross-border workers (those who exercise their professional activity in the territory of one Member State and reside in the territory of another Member State, to which they return in principle every day or at least once a week) can telework more than 25% of the time, an amount that determines what we should understand as "carrying out a substantial part of the activity", in their country of residence while maintaining the applicable social security legislation of the country in which the company has its headquarters or domicile.
With the extension of this Agreement, the application of the criteria set out in Article 13 of the Regulation on the coordination of social security systems relating to the pursuit of activities in two or more Member States of the European Union remains suspended.
As such, said suspension prevents the legislation applicable to cross-border workers, who were forced/advised to telework from their EU State of residence, from falling on the country of residence due to them complying with the requirement to exercise a substantial part of their activity in that territory.
In this way, the extension of the Agreement until 30 June 2023 allows cross-border workers to telework from their EU State of residence without being subject to the social security legislation of that State.
Thanks to this new extension, two important disadvantages are avoided:
- The employer will not have to register in the country of residence of the worker in order to comply with their obligations.
- The social security contributions of cross-border workers are not reduced.
Do you want to know more?
The extension of this Agreement has important consequences for both the cross-border worker and the employer.
It is important to consider what will happen, after this last extension, with respect to international teleworking, which so far has not been included in Regulation 883/2004 on the coordination of social security systems but which is undoubtedly here to stay.
For more information on the implications of this extension for both employer and worker, please contact our team of international social security experts.