EU No Impact policy for social security extended until June 30, 2023

A No Impact policy for social security was introduced during the coronavirus lockdowns, with the aim of avoiding social security laws having to be amended for cross-border workers within the European Union who were forced/advised to stay and work at home. The No Impact policy was originally introduced for six months, with the last extension set to expire at the end of December 2022.

Given the current situation where cross-border workers are still working from home of a permanent basis, the end of the No Impact policy could affect many employers and employees. Employees who work from home (their home being in a country other than their country of employment) more than 25% of their time, fall under the social security system of the country of residence. This can increase the administrative burden for employers and will affect the social security contributions payable by both the employer and the employee. With the No Impact policy for cross-border workers being extended until June 30, 2023, working from home will not affect the social security position of these workers until June 30, 2023. During this six-month extension, the EU Commission will further analyze the challenges of cross-border remote working.

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