EU Commission: homeworkers may also work from home up to a maximum of 49% after July 1, 2023 without consequences for their social security position
In a recent meeting, the European Commission reached agreement that if employees work less than 50% (at home) in their country of residence, the social security of the country where the employer is established can be continued. If the person working from home works less than 50% from home in his/her country of residence, the social security legislation of the country where the employer is established may continue to apply. This was agreed by the European Commission at a recent meeting.
The agreement will take effect on July 1, 2023. The 'No impact policy' will then be discontinued. In many cases, this new agreement therefore prevents a different social security system from applying to those who work from home in their country of residence.
Application for an A1 certificate?
Employees can make use of these agreements via an ‘opting-in’ arrangement. This means that an A1 certificate must be applied for on the basis of Article 16 of the EU Regulation.
Depending on the Member States that have yet to sign the regulation, a home working percentage of less than 49% may be permitted. The percentage of total working hours that can be worked from home therefore differs per Member State. It is in any case expected that Austria will not sign the agreement and will apply a percentage of up to 40% working from home, as agreed separately with various neighboring countries. The opinions of the German, Belgian and Dutch governments in this respect is currently not yet known.
What does this mean?
Depending on the combination of the country of residence and country of employment, employers and employees can continue to work from home up to a maximum of 49% via an ‘opting-in’ arrangement, without this affecting the employee’s social security position.
The European Commission has established a new working group that is preparing a new provision for the European social security regulation, which must be ready by the end of 2024 at the latest. For now, therefore, the percentage per Member State will be adhered to, until there is a uniform regulation for all countries.
