General Principles
of Social Security
Basics
Social security regulations within national frameworks are inherently complex. This complexity multiplies exponentially in international contexts, where multiple countries with unique interpretations and implementations of social security come into play.
In this section, the Navigator will guide you through the fundamental principles of cross-border Social Security Compliance to help navigate these challenging waters. But before you take to the road, please first read the Introduction to Social Security for a better underrstanding of the complexity.
Note: The roadmaps in this section apply to assignments in the framework of employment and do not apply to personnel in international transport (seafarers, cockpit and cabin crew, truck drivers), international law organizations (United Nations, etc.), embassies, consulates, and civil servants.
How to determine where the Employee is subject to Social Security?
Checklists:
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Collecting Information
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EU/EEA/Swiss Assignments
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Bilateral Treaty Assignments
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Third Country Assignments
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The Compliance File
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Flowcharts
There are 206 internationally recognized states in the world, and most of them have some form of social security system. These systems can contain a wide range of social security insurances. Alternatively, they may be less extensive, as is often the case in emerging economies.
To determine which regime applies to the assignment, you need to follow a structured approach. The roadmap in this section will show you the way.
What are the Rules regarding Mandatory Health Insurance
Checklists:
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Reassessing the Regime
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EU/EEA/Swiss Assignments
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Bilateral Treaty Assignments
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Third Country Assignments
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Family Members
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Temporary Stay
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The Compliance File
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Flowcharts
Building on the previous section on cross-border social security rules, this section delves into the critical relationship between Social Security coverage and mandatory Healthcare Insurance.
It will explore scenarios where an employee is subject to one country's Social Security scheme but lives, works and/or temporarily stays in another, and the subsequent implications for the employer, the employee and their dependent family members.
Special Focus: Private & Voluntary Insurance Considerations
When sending staff abroad, several circumstances may necessitate private insurance coverage beyond standard benefits. These situations include gaps in mandatory coverage, loss of mandatory social security benefits, and the need to supplement contractual employee benefits. This section provides a comprehensive overview of insurance options that international employers might want to consider to ensure adequate protection while staff is working overseas.
Special Focus: Hybrid Working
Hybrid work is a flexible employment model that combines in-office and remote work, allowing employees to split their time between a physical office and alternative locations such as their home. When hybrid work extends across borders, it creates a complex web of social security implications for both employees and employers, as workers may become subject to social security in a different country than their employer's home jurisdiction.
Recognizing the complexity of this scenario, we have developed a specialized Profile that also addresses these unique social security compliance requirements.
Special Attention: EU Posting of Work
The EU's Freedom to Provide Services enables companies to offer services across member states, allowing them to send employees to perform tasks there without extensive immigration procedures. Nevertheless, employers must comply with specific requirements outlined in the EU Posted Workers Directives (PWD).
The PWD presents a complex legal framework, designed to balance economic freedom with robust worker protection across 27 diverse member states. This intricate balance is necessary given each country's unique immigration , labor laws, wage standards, and social systems.
Given the complexity of the PWD Regime, the Navigator created a Profile dedicated to the EU Posted Worker, encompassing the relevant disciplines, including social security.
Special Focus: The Social Security Compliance Policy
The company’s internal policy on handling social security compliance requirements mirrors its adherence to national laws and committment to contractual and duty of care obligations towards its employees.
This section outlines current developments in this area that will help you draft or review such a policy.