Considering the ongoing COVID-19 crisis and its consequences in terms of working patterns for cross-border commuters, the Swiss social security administration communicated that the current “flexible approach” for the social security coordination rules for cross-border workers will be extended into 2022. 

In relation to Germany, Austria, and Liechtenstein, the flexible application of the subordination rules has been agreed until 30 June 2022; in relation to France, at least until 31 March 2022. Discussions on extending the deadline are taking place both bilaterally with Italy, but it is expected that Italy will also extend the rules until 30 June 2022.In parallel the European social security authorities of all EEA countries have also decided to extend the “no-impact” position in view of determining the applicable social security legislation up until 30 June 2022 for all EU countries including Switzerland. An overview of the countries and extensions can be found below.

This extension of the no-impact position is a continuation of the rules already in place since March 2020. This aims to reduce the impact on the social security regulations of cross-border workers by the Covid-19 restriction measures taken by governments, such as working from home and will not have an impact on the social security regime they fall under.

The flexible application of the international social security rules between EEA and Switzerland provides relief to companies for their cross-border employee population and the social security effects of the continued measures required to manage the pandemic and its aftermath.

As this decision is taken at EEA and CH level only, any COVID-19-related changes in the working pattern in a bilateral (or non-) treaty context should still be checked on a case-by-case basis.

Deloitte’s view

The extension of the flexible rules for cross-border workers throughout Europe provides commuters living in EEA and Switzerland and their employees with useful guidelines to navigate the compliance obligations from a social security perspective. Overall, this is positive 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. 

If you would like to discuss more on this topic, please reach out to our key contacts below.

Key contacts

David Wigersma - Partner, Global Employer Services

David has 20 years of experience in the area of international corporate and individual taxation planning. He specialises in addressing the complex compliance needs of a cross-border workforce with varied elements of compensation.

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Stephen Turley - Senior Manager, Global Employer Services

Stephen is a Senior Manager with Deloitte’s Global Employer Services Department and leads the international social security practice for Switzerland. In that role, he supports clients with a variety of topics in connection to cross-border employees ensuring compliance of their mobile workforce and providing guidance to international social security obligations, benefits and entitlements. Stephen is a lecturer on social security at the University of Applied Science Winterthur and a frequent speaker at public seminars. He holds a MLaw degree from Zurich University and a BA of Arts from Trinity College Dublin.

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Harry Verougstraete - Senior Manager, Global Employer Services 

Harry is a Senior Manager within the Global Employer Services team of Deloitte in Switzerland. He is leading our Posted Workers Directive (PWD) offering and is co-leading our international social security team in Switzerland. Harry has more than 9 years of experience with Deloitte Belgium and Switzerland. He supports companies on global mobility related matters and is specialised in coordinating global mobility programs. He advices on tax, social security and PWD related matters. 

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Gloria Fehringer - Senior Consultant, Global Employer Services 

Gloria is a senior consultant within Deloitte’s Global Employer Services. In that role, she supports clients with a variety of topics within international expatriate taxation, social security and global mobility support to ensure compliance amongst their mobile workforce. Gloria holds a B.A. degree from ebz university in Bochum and a LL.M. degree in corporate tax law from the University of Cologne, both accomplished in dual study programs while being employed with Deloitte in Germany. Alongside working in fields of international- and mobility tax as well as social security in Switzerland, she concluded a CAS in National Individual Taxation from Kalaidos School Zurich. 

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