Press release - Clearer social benefits rules for EU mobile workers

Clearer social benefits rules for EU mobile workers
- Fair access to social security for mobile workers in the EU
- Updated rules for unemployment, family and long-term care benefits
- Better cooperation between member states to ensure access to benefits and root out fraud
On Tuesday, Parliament approved a revision of EU social security coordination rules to ensure fair and clear access to social security for EU workers who live or work in another EU country.
The long-awaited update of the regulation on social security coordination, provisionally agreed between Parliament and the Council, introduces clearer criteria for determining which country’s social security legislation applies for EU workers who live or work in another EU member state. It also encourages member states to share necessary information promptly in order to identify errors or fraud, including abusive practices, such as letterbox companies. The text was adopted by 511 votes in favour, 87 votes against, and 61 abstentions.
Unemployment benefits
The law clarifies how periods of work, self-employment, or insurance cover undertaken in different member states are counted when assessing entitlements to unemployment benefits. People who go to another EU country to look for work will be entitled to receive unemployment benefits for six months from the country they left. This period may be extended until the end of their entitlement.
For cross-border workers, it is clarified which member state is responsible for paying benefits. If a cross-border worker has been employed, self-employed, and/or insured for an uninterrupted period of 22 weeks in a member state other than their country of residence, benefits will be paid by the country in which they work.
Long-term care and family benefits
The updated rules increase legal certainty for people who need care and those who care for them. It adds a new definition and a list of long-term care benefits covered by these rules.
There is also a clearer distinction between family benefits in cash, intended to replace income when a person gives up or reduces work to raise a child, and other family benefits. This will promote a more equal sharing of child-raising responsibilities and removes possible financial disincentives for parents who reduce their working time to care for their child.
Workers sent to work in another EU country
Workers or self-employed persons sent abroad for up to 24 months (not replacing a previously sent employee) remain insured in the EU country where their employer is established or where they normally pursue their self-employed activity. To tackle fraud and errors, they must have been affiliated to social security in their home country for at least three months before being sent abroad.
The text also introduces a mandatory prior notification system: when a worker carries out activities in another EU-country, the competent authorities of the home member state must be notified in advance. This will not apply for business trips and short-term postings of a maximum of three days, though the construction sector is not covered by this exception.
Working in two or more member states
For workers carrying out activities in two or more member states, the updated law helps determine the “registered office or place of business” of the employer or business to help establish which member state’s social security legislation applies. To do so, relevant factors include the place where essential decisions are taken, where the turnover is generated, and the places where the general meetings are held.
Economically inactive citizens
In line with decisions by EU Court of Justice, EU citizens who neither work nor actively search for a job should not be prevented from contributing to a sickness coverage scheme.
Quote
Gabriele Bischoff (S&D, DE) rapporteur for the file, said: “Today, we are making sure social security rights for those moving to another EU-country are well protected. The rules will be clearer, better enforceable, and simpler for both workers and companies in the EU. There will be strengthened cooperation between social security institutions in the fight against fraud and the use of letterbox companies. For the first time, there will be a European definition of long-term care, and family benefits will be easier paid across EU-border. The EU is simplifying the rules while ensuring that the social security rights you have in one country, you will retain when moving or living abroad.”
Background
There are currently 16 million Europeans living or working in another EU country. EU rules on social security make it easier to move, work and live across EU countries, ensure continued coverage when crossing borders and help determine which country is responsible for social security cover.