The social security position and coverage of migrant workers has been governed by the provisions of the EU Regulation 1408/71 and its Implementing Regulation since the early seventies.

On 29 April 2004 the EU Regulation 883/2004 was enacted for the purpose of modernising and simplifying the coordination of the EU social security systems. This EU Regulation 883/2004 is designed to replace the EU Regulation 1408/71 currently in force.

On 27 July 2009 the EU Council adopted the Implementing Regulation containing the provisions for the implementation of the EU Regulation 883/2004. According to the Belgian Social Security Office this Implementing Regulation (and therefore also the EU Regulation 883/2004) will come into effect on 1 May 2010 at the earliest.

The EU Regulation 883/2004 will introduce a number of changes to the way a mobile worker’s social security position within the EEA is determined. Two major changes are:
- for mobile workers who are performing employment duties in the country where they reside and in at least one other member state on account of the same employer, there will be a requirement for substantial employment in the home country in order to be subject to the social security scheme of that country. This requirement is defined as being no less than 25 percent of time or turnover.
- individuals who are simultaneously employed in one member state and self-employed in another member state will no longer be insured in more than one member state at the same time. Due to the abolishment of the “annex VII” rule, member states can no longer impose an additional subjection for the self-employed activities performed on their territory.

This new set of rules on the coordination of the EU social security schemes may thus have a significant impact on the social security positions of your mobile workforce within the EEA.

The EU Regulation 883/2004 also provides for a 10-year transitional period during which the existing employment situations remain covered by the former EU Regulation 1408/71 unless the employee would explicitly request that the new set of rules be applied. The EU Regulation 883/2004 may thus create some optimisation opportunities in case this Regulation would result in the application of a more cost-advantageous social security system than the one currently in place.

Should you require further information on the implications of the EU Regulation 883/2004 for your mobile workforce, you can contact us as usual and/or attend the breakfast seminars on the subject that will be organised by our office.