New European social security regulations in force as from 1 May 2010

On 1 May 2010 Regulation (EC) 883/2004 entered into force. This Regulation provides new European social security rules and replaces Regulation (EC) 1408/71.

The basic principles remain the same, but there are a number of important changes in order to promote internal mobility, namely: 

• an employee can be posted to another Member State while remaining subject to the social security regime in the home country for an initial period of 12 months renewable with 12 months. This initial period of 12 months is now prolonged to 24 months;
• to be subject, in case of simultaneous employment in various Member States, to the social security regime of his state of residence the employee must pursue a ‘substantial part’ of his activities there, accounting for 25% of his work time or remuneration. If not, he will be subject to the social security regime of the Member State in which the registered office of his employer is situated;
• this 25% rule is not applicable for those employed by an employer that is registered outside the EU or by various employers situated in various EU Member States. These individuals are automatically subject to the social security regime of their state of residence, even if they do not pursue any activities there;
• “Annex VII” is repealed under the new Regulation. Therefore Belgian self-employed persons who are also pursuing activities in another Member State as employees abroad are from now on also subject to the social security regime in the Member State that is competent for their activities as an employee for their Belgian self-employed activities;
• the specific rules for the “driving, navigating and flying” personnel of international transport companies are repealed. From now on the same rules apply to them as to the other employees, including the 25% rule.
• The new Regulation foresees a transitional period of ten years during which existing situations under the present rules can continue to apply as long as these aren’t modified and long as the employee doesn’t explicitly request the application of the new Regulation.

Significant detail: the new Regulation will only be applicable with regard to EU nationals.  Regulation (EC) 1408/71 remains applicable with regard to nationals of third countries, Norway, Iceland, Liechtenstein and Switzerland.