2023-11-13-KPMG_Global-Denmark_–_EU_Social_Security_Framework_Agreement_on_Telework_Declined_3页_294kb

Denmark Declines EU Social Security Framework Agreement on Cross-Border Telework

On October 30, 2023, the Danish Ministry of Employment announced Denmark will not sign the EU Social Security Framework Agreement on cross-border telework. As a result, the current 25-percent rule from Article 13 of Regulation (EC) No 883/2004 continues to apply to all employees with such work arrangements, and Denmark will not enter into individual agreements under Article 16 where home-country work exceeds 25 percent.

The agreement, if signed, would have allowed up to 49.9 percent home work, but Denmark decided to maintain the existing rule due to its effectiveness and alignment with potential broader interpretations through the EU Guidance Note on telework. The EU Guidance Note, applicable since July 1, 2023, allows for more flexible telework arrangements, but Denmark's refusal means teleworkers will not benefit from the Agreement's specific provisions, except where the Guidance Note applies.

KPMG recommends that employers and employees apply for an A1 certificate and ensure that work performed in the home country does not exceed 25 percent for any continuous 12-month period to remain compliant with social security rules.