Transitional measure on the applicable social security system
Call for action: Transitional measure on the applicable social security system in the case of cross-border employment will expire on 30 april 2020
The European Decree 883/2004, which came into force on 1 May 2010, regulates, among other things, which social security system applies when persons are employed in several member states of the territory of the EEA and Switzerland and replaces Decree 1408/71.
In order to prevent persons from being disadvantaged as a result of the implementation of Decree 883/2004, a transitional measure has been put into place.
According to this transitional measure, persons remain under the old Decree until 1 May 2020 as long as their home/work situation does not change or as long as they have not explicitly requested the application of Decree 883/2004.
As this transitional measure expires on 30 April 2020, this could have an important impact on persons who were already employed on a cross-border basis before 1 May 2010 and who, as of 1 May 2020, must now also comply with Decree 883/2004.
Under the old Decree 1408/71, the social security system of the country of residence was applicable as soon as part of the activities were carried out in the country of residence. It did not matter what percentage of the total professional activity was performed in the country of residence.
This has been amended by the new Decree 883/2004 which introduced the concept of “substantial” activities. From then on, the social security system of the country of residence only applies when 25% of the working time and/or the income is generated in the country of residence.
In concrete terms, this means that for persons who were socially insured in their country of residence under the old Decree 1408/71, but who do not perform “substantial” activities there as required under the new Decree 883/2004, a change is coming up on 1 May 2020 with regard to the country where they are socially insured and have to pay social security contributions. This is of course only the case insofar as their situation has not changed since 1 May 2010 and the application of the new Decree 883/2004 has not been requested before.
Do you want to know what the expiration of the transitional measure means for your situation? Van Havermaet is happy to help you!