Many workers worked remotely from abroad during the Covid-19 pandemic, which, in principle, has consequences for the applicable social security legislation. Last June, the European Administrative Commission responsible for the coordination of social security systems decided to maintain the measure to “neutralize” periods of remote working from abroad until 31 December 2022.
Context
In the European Economic Area (EEA) and Switzerland, the principle is that social security contributions must be paid in the Member State where the worker performs his work.
In the event of simultaneous employment in several Member States, the worker is however subjected to the social security system of his country of residence,if he carries out a substantial part of his activities there, i.e. at least 25%.
Over the last two years, a specific and temporary exception to this rule was foreseen for compulsory remote working as a result of the Covid-19 pandemic. Some European countries, such as Belgium, decided that compulsory remote work from abroad would have no consequences for the determination of the applicable social security regime.
New transitional period
This “neutralisation” period ended on 30 June 2022. However, the European Administrative Commission responsible for the coordination of social security systems has decided to introduce a transitional period until 31 December 2022, with the same effects as the previous measures.
This means that a worker who works remotely in his country of residence, being a country of the EEA or Switzerland (e.g. Germany), will remain subjected to the social security system of the country where his or her employer is based (e.g. Belgium), even when more than 25% of his or her working time is performed in that country of residence.
No formalities are required for the application of this transitional measure. However, the LIMOSA declaration is still required for remote working in Belgium for a foreign employer.
What to remember?
When a worker is employed simultaneously in several EEA Member States or Switzerland, than periods of remote working carried out abroad until 31 December 2022 in the worker’s country of residence, shall not be taken into account in determining the applicable social security legislation.
Source: Decision of the Administrative Commission for the Coordination of Social Security Systems of 14 June 2022.
This article was first published by our Belgian member firm Sotra on 12 Augustus 2022. Read more on Sotra’s expertise and how our member firm can assist you.
