The Swiss social security administration has communicated that the current “flexible approach” in regards to maintaining ordinary cross-border commuters (who have been having to work from home) in the Swiss social security and pension system will continue to be valid until the 31 December 2021. Further, the social security authorities of the European Economic Area confirmed the expansion of this approach to all the EEA countries and Switzerland.
According to the European regulation on social security coordination for cross-border workers, working more than 25% of one’s time from home can lead to a switch from paying social security in one’s country of work (e.g. Switzerland) to one’s country of residence (e.g. France or Germany). This has caused concern from cross-border workers and their employers where working from home is simply a consequence of the pandemic. A flexible approach, therefore, had been adopted by the Swiss social security administration in agreement with certain neighbouring countries until 31 December 2021. Please read our earlier blogs for more information on this.
- Switzerland soon to renew strict enforcement of European social security affiliation rules as COVID-19 restrictions lifted
- Increase of home office due to COVID-19 should not change the applicable social security affiliation
- The future of remote working: Remote work/ Cross border commuters - Extension of flexible Social Security approach until 30 June
- The future of remote working: Remote work / Cross border commuters
With the Administrative Commission’s meeting held on 16 and 17 June 2021, the social security authorities of all European Economic Area countries and Switzerland agreed on a joint position: The “flexible approach” will be valid until 31 December 2021 and will be expanded to all EEA countries and Switzerland. Consequently, ordinary cross-border workers from the following countries should not be forced to affiliate to their home country social security and pension systems due to being required to work from home:
The expansion to this variety of countries is welcome news for cross-border commuters living in EEA and Switzerland, as it enables companies as well as their employees to better cope with the social security effects due to the Covid-19 pandemic and its aftermath.
However, it is advisable to closely monitor cross-border cases involving any countries other than those listed above as the “flexible approach” might not be applicable and social security liabilities in additional countries could arise.
Visit our Swiss Tax & Legal specific Covid-19 webpage to get the latest update.
Explore our Deloitte International Security Solution webpage.
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