Bilateral Treaty Determination Rules
Step-by-Step Roadmap
A Totalization Agreement protects social security benefit rights of employees who divide their work between countries, eliminates double social security contributions over the same earnings, and removes legal obstacles that prevent built-up benefit entitlements in one country from receiving those benefits while residing in the other country.
The Navigator assists in determining whether the Treaty applies to the case you're handling and indentifying the country where the employee is subject to social security.
Note:
A Totalization Agreement establishes in which country the employee is subject to mandatory social security coverage during their assignment abroad. However, it does NOT determine which specific social insurance schemes within that member state apply to the worker, nor do they define the exact entitlements and obligations that arise during the assignment.
Step 1 - Does the assignment fall within the Treaty's Scope?
The Totalization Agreement applies if the assignment falls within the following three dimensions:
a) The Personal Scope, which refers to the individuals.
b) The Territorial Scope, which refers to countries or jurisdictions.
c) The Material Scope, which refers to insurances.
Step 2 - Assignment classification: Posting (Secondment)
Once an assignment is confirmed to fall within the scope of a Totalization Agreement, it is crucial to determine in which of the two countries the employee is subject to social security.
Totalization Agreements establish specific determination rules to clarify which social security legislation applies.
Step 3 - Assignment classification: NO Posting (Secondment)
When an assignment does not meet the conditions of a posting, the general rule is that the employee becomes subject to the social security system of the country where they perform work.
However, exceptions may apply based on the treaty in question and the specific circumstances of the case.
