Developments in EU social security legislation

To make this topic less painful, at the beginning of pandemics 27 EU member states had implemented “No impact policy” in social security area. “No impact policy” is a temporary measure that prevents a change in social security position for employees who intend to return to their pre-pandemic working pattern once the state of health emergency is called off. Based on these measures, persons performing work temporarily from other country than before the pandemics could stay insured in the country, from where they would perform the work under usual (prepandemics) situation.

In December 2021 the Administrative Commission in the EU agreed to extend the “No impact policy” for additional 6 months, i.e. until 30 June 2022. The extension was necessary due to the ongoing pandemic.

However, as the pandemic continues and work patterns continue to change also for the future, we may see a pressure from several EU member states to consider reviewing the coordination rules from a long-term perspective. We are facing different interpretations in various member states, Slovakia being one of it. Obtaining A1 certificates in various “pandemics situations” is complicated. If you face any issues in this respect, please do not hesitate to contact us.

With respect to the EU Regulation 883/2004 on the coordination of social security systems, currently there is a new amendment discussed. Many significant changes are expected, such as a pre notification system for posting of employees. This change is likely to have strict deadlines and possible sanctions in case of breaching the deadlines. However, the wording of the amendment or deadlines is not clear yet.

There are also other changes expected in this amendment, not just in case of posted employees, but also for business travels, or work from two or more EU countries. The area of social security benefits is the one where the discussions might be most painful.

We will monitor the developments and keep you updated. In the meantime, please consider the social security and tax obligations when approving work from home or new assignments to abroad. KPMG stands at your disposal.