EU Social Security Reforms Set to Impact Cross-Border Workers
The European Council has approved significant reforms to EU social security coordination rules for individuals working across borders.
Having already received approval from the European Parliament, the changes are expected to take effect from 1 November 2028, following publication in the Official Journal of the European Union.
Key changes
- Earlier A1 certificate applications: Employers will need to submit A1 certificate applications before an assignment begins, reducing the flexibility currently available.
- Limited exemptions for business travel: Certain short-term business trips and activities may no longer require an A1 certificate, although the exemption is narrowly defined and excludes the construction sector.
- Stricter eligibility requirements: Employees must be affiliated with their home country's social security system for at least three months before being eligible for an A1 certificate, up from the current one-month requirement.
- New cooling-off period: Following a 24-month posting, employers will generally need to observe a two-month gap before assigning another employee to the same Member State for the same or similar activity.
- Longer validity for multi-state worker certificates: A1 certificates for multi-state workers may be issued for up to 24 months, subject to renewal.
The reforms form part of broader EU efforts to modernize and digitalize social security processes and will require employers with internationally mobile workforces to review assignment planning, business travel processes and compliance procedures well ahead of implementation.
What does this mean for employers?
While the proposed reforms may simplify certain A1 certificate requirements in the future, they are not yet in force and are not expected to apply for some time. In the meantime, existing social security and Posted Worker obligations remain in place and should continue to be assessed on a trip-by-trip basis.
Contact Nomadic to understand how these changes could affect your compliance processes and internationally mobile workforce.
This alert is for informational purposes only. If you have any questions, please contact us.