MEPs have approved an update to EU rules that determine which country is responsible for paying social security benefits when people live or work in another member state.
The revised “social security coordination” regulation — the EU framework used to decide which national system applies in cross-border situations — was adopted by 511 votes in favour, 87 against and 61 abstentions, the European Parliament informed on Tuesday.
The changes set out clearer criteria for deciding which country’s social security legislation applies to mobile workers and encourage national authorities to share information more quickly to spot mistakes and fraud, including the use of “letterbox companies” — firms set up in name only to take advantage of rules in another country.
For unemployment benefits, the text clarifies how periods of work, self-employment or insurance in different member states should be counted when assessing entitlement.
People who go to another EU country to look for work will be entitled to keep receiving unemployment benefits for six months from the country they left, with the period potentially extendable until their entitlement ends.
Rules are also set out for cross-border workers on which country pays unemployment benefits: if a person has been employed, self-employed and/or insured for an uninterrupted 22 weeks in a member state other than their country of residence, the country where they work will pay the benefit.
Long-term care, family benefits and posted workers
The updated text introduces an EU-level definition and a list of long-term care benefits covered by the coordination rules, the European Parliament said.
It also draws a clearer distinction between family benefits paid in cash to replace income when someone gives up or reduces work to raise a child, and other family benefits.
For workers or self-employed people sent to another EU country for up to 24 months, the rules keep them insured in the country where their employer is established or where they normally work, provided they are not replacing a previously posted employee.
To reduce fraud and errors, they must have been affiliated to social security in their home country for at least three months before being sent abroad.
The text introduces mandatory prior notification to the home country’s authorities when a worker will carry out activities in another member state, with an exception for business trips and short postings of up to three days — although that exception does not apply in the construction sector.
The Parliament said around 16 million Europeans currently live or work in another EU country.
