- 11 Apr 2012
On 1 May 2010, the new Regulation (EC) No. 883/2004 became effective in the 27 Member States of the EU. In relation to Switzerland, the "old" Regulation (EEC) No. 1408/71 remained in force. However, on 31 March 2012, the EU-Swiss Joint Committee decided to extend the "new" regulation to Switzerland.
The "new" regulation marks some significant changes in the event of simultaneous employment in two or more Member States (and now also Switzerland). Whereas generally it would have been sufficient to work one day per month in the state of residence under the "old" regulation in order to be subject to its social security provisions, under the "new" legislation, one has to work at least 25 % in the state of residence to achieve the same objective. Failing that, the legislation of the state in which the registered office or place of business of the employer is situated, will be applicable. The "25 % rule" will, however, not apply to employees working for multiple employers situated in different Member States; they are automatically covered by the social security regime of the state of residence, even if they pursue no activity whatsoever in such state.
In addition, self-employed persons in Belgium (for example, company directors) will no longer be subject to Belgian social security for these self-employed activities if they also pursue an activity as an employee in another Member State (or Switzerland). Their self-employed activities will also be governed by the social security legislation to which they are subject by virtue of their activities as employees.
For more Information on the "new" regulation we refer to our Newsflash of 5 May 2010 .
Please note that, with regard to Norway, Iceland and Liechtenstein, the "old" Regulation (EEC) No. 1408/71 will remain in force until further notice.