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.
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.
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