European civil servants cannot be subject to Belgian social security, the Court of Justice of the European Union (CJEU) ruled in mid-December – a "bombshell" for the country's social security, according to experts.
The court ruled in favour of a former European civil servant – only described as 'JD' by L'Avenir – who also worked as a self-employed person in Belgium after retiring in 2006. As a result, he had to start making the required social security contributions that go with being self-employed.
His bill in 2020 amounted to just over €50,000, but JD challenged his 'compulsory' liability – and therefore the amount he had to pay – to the Institut national d'assurances sociales pour travailleurs indépendants (National Social Insurance Institute for Independent Workers – Inasti) and his social insurance fund (Acerta) before the French-speaking court in Brussels.
He argued that he had already paid into the Joint Sickness Insurance Scheme of the European Union (JSIS) throughout his career. Unable to settle the dispute, the Brussels court referred the question to the CJEU.
Privileges and immunities
In turn, the European Court ruled that because of the "privileges and immunities of the European Union and the provisions of the Staff Regulations of Officials of the European Union," JD was effectively exempt from the contributions claimed by the Belgian State – even in retirement.
Additionally, as the scope of the ruling was rather broad, European civil servants – whether employed, self-employed or retired – cannot be subject to Belgian social security.
Inasti, which has been taken to court by JD, does not know how many European civil servants are in this situation, but mentioned five similar (pending) cases. The institute added the consequences of the JD case are "currently being analysed" and that it does not comment on "its scope and consequences."
It also states that it is the Brussels court that "will now have to rule on the merits of this dispute," this time taking into account the (binding) ruling of the CJEU.
Related News
- Commission presents new measures to address labour shortages in the EU
- Belgium's budget deficit set to be second largest in Europe, claims EU
- How to land a job at the EU institutions
"Any person who is fully or partially subject to the common system of the European institution and who, in addition to that, carries out a professional activity in Belgium is subject only to the European system," Bruno de Paulet, a legal expert in the National Social Security Office (ONSS) international relations department, told the newspaper.
"The result of this reasoning is a total exemption from social security contributions and from the principle of national solidarity, even if it concerns an activity that has nothing to do with the European Union," he added.
While legally he has nothing to complain about, "morally it is quite shocking: people already earn a good living as European civil servants and find themselves in an extremely advantageous situation, since they can carry out another activity while being exempt from paying taxes, for example."
De Paulet, however, is "not worried" about the potential financial consequences for Belgian social security.
