2021-09-15-KPMG_Global-European_Union_–_Extension_of_COVID-19_Measures_for_Social_Security_3页_133kb

European Union - Extension of COVID-19 Measures for Social Security

Core Content

The European Union (EU) has extended temporary guidelines regarding the social security coverage of cross-border workers affected by the COVID-19 pandemic. These guidelines, initially adopted in June 2020 by the EU Administrative Commission for the Coordination of Social Security Systems (AC), were designed to address the challenges posed by remote working due to movement restrictions. The extension, effective until 31 December 2021, ensures that the country responsible for social security coverage remains unchanged for employees working remotely as a result of the pandemic, provided they intend to return to their usual working pattern once the health emergency ends.

Main Points

• Guidelines Extension: The AC extended the temporary guidelines for social security coordination until 31 December 2021.
• Remote Work and Social Security: Employees working remotely due to the pandemic are covered under the social security system of their country of residence, provided they work at least 25% of their time from home.
• Temporary Nature: The guidelines apply only to temporary changes in working patterns caused by the pandemic and not to permanent or long-term remote work arrangements.
• Country-Specific Rules: While the EU guidelines provide a framework, individual member states may have their own specific rules. Employers and employees must verify the applicable rules in their respective countries.
• Documentation Importance: It is recommended that employers and employees obtain documentation confirming their social security status, especially if they are affected by the temporary guidelines.

Key Information

• The original guidelines were introduced in June 2020 to prevent changes in social security coverage for cross-border workers who were working remotely.
• These guidelines were inspired by Belgium's early efforts to maintain social security coverage for its cross-border workers during the pandemic.
• The EU coordination rules (Regulation (EC) No 883/2004) state that employees working 25% or more of their time in their country of residence are covered by that country’s social security system.
• The temporary extension ensures that cross-border workers who have exceeded the 25% threshold due to the pandemic are not required to switch social security coverage until the end of 2021.
• Employers and employees must remain vigilant and ensure that their working arrangements comply with the relevant rules, as the temporary guidelines may not apply to all situations.

Recommendations

• Check Country-Specific Rules: Employers and employees should verify whether the relevant countries have adopted the EU guidelines or have their own temporary arrangements.
• Document Working Patterns: Obtain and maintain documentation that confirms the employee’s working pattern and social security status in relation to the pandemic.
• Prepare for Transition: If the working pattern changes permanently, the employee and employer must affiliate with the appropriate social security system based on the new working arrangement.

Footnotes

1. For more information, see the European Labour Authority's overview on the impact of teleworking during the pandemic on social security.
2. See footnote 1 for additional details.
3. Some countries, such as Luxembourg and France, have agreed to extend their own temporary measures until 15 November 2021.

Contact

For further assistance or information, contact your local GMS or People Services professional, or reach out to Daida Hadzic, EMA Head of Quality at KPMG in the Netherlands:

• Email: Hadzic.daida@kpmg.com
• Phone: +31 6 532 54 599 (mobile)

Disclaimer

The information in this document is provided by KPMG International member firm in The Netherlands. Each KPMG firm is a separate legal entity. The KPMG name and logo are trademarks of KPMG International.