EU: European Parliament and EU Council agree on Update of Social Security Coordination

The update to the Social Security Coordination Regulations of 2004 and 2009 is long overdue and was already an important item on the agenda of the Juncker Commission. After very difficult negotiations, which were launched in 2017 after a Commission proposal in 2016, the European Parliament and the EU governments have finally reached a provisional political agreement in December 2021 regarding the new rules, which will have an important impact for European cross-border workers.

According to the European Parliament, the new rules aim to ensure access to social security for EU workers who have moved to a different EU country, while fairly distributing obligations among member states. Member states should cooperate better using the notification system to guarantee that workers have social security (the A1 declaration). Employers should be able to access information and complete relevant documents online. Finally, the single digital gateway as well as the Electronic Exchange of Social Security Information (EESSI) should be used for relevant procedures.

The three EU institutions finalised the text at the end of December. Consequently, the informally agreed text will have to be confirmed by the European Parliament in a plenary vote in the beginning of 2022. The final text is not yet available.

Key Action Points for Human Resources and In-house Counsel

EU social security coordination rules will be modernised soon.