29 Jun 2022 Update June 2022: working from home for cross-border workers
In recent years, we have regularly written about the rules for cross-border workers who work from home. We would like to update you on the latest developments in this area.
To start with, a quick summary of the background: based on European legislation, only the social security rules of one Member State can apply. In other words, an employee who lives in Belgium or Germany, but who works in the Netherlands for a Dutch employer, is covered by the Dutch social security system. In case the employee works from home, the work is (also) performed in Belgium or Germany. Cross-border workers who work at home for 25% (or more) of their working hours are socially insured in their country of residence, instead of in their country of work.
Employees who work a lot from home can therefore be confronted with a change in the social security system. The consequences are far from negligible! Think about health insurance, pension, sickness benefits and the payment of social premiums on the salary.
We can now report that the European member states have agreed that, at least until 1 January 2023, working from home will not lead to a change from the country of employment to the country of residence for social security purposes. Should anything change after that date, we will of course inform you.
Please note that on 1 July 2022, the agreements that the Netherlands has concluded with Belgium and Germany regarding the fiscal treatment of homeworking days will expire.
Do you have any questions about cross-border employment, working from home or other employment law issues? The employment lawyers at SPEE advocaten & mediation will be happy to help you.