Parliament’s Employment and Social Affairs Committee has endorsed the provisional agreement with EU governments on updated rules for the coordination of social security systems by 47 votes in favour and 3 against, with 4 abstentions.
If formally adopted by Parliament and Council, the deal will introduce clearer criteria for determining which country’s social security legislation applies. It should also foster cooperation between member states, so that the necessary information is shared promptly, to help identify errors or fraud, including abusive practices, such as letterbox companies.
Unemployment benefits
The agreement clarifies how periods of work, self-employment, or insurance cover completed in different member states are counted when assessing entitlement to unemployment benefits. The member state where a person last worked or was insured will be responsible if the person was active there for at least one uninterrupted month.
People who go to another EU country to look for work will be entitled to receive unemployment benefits for six months from the country they left. This period may be extended until the end of their entitlement.
Regarding cross-border workers, the updated law clarifies which member state is responsible for paying benefits. If an unemployed cross-border worker has been employed, self-employed, and/or insured for an uninterrupted period of 22 weeks in a member state, benefits will be paid by that member state.
Family benefits
The revised rules clarify the distinction between family benefits in cash, intended to replace income when a person gives up or reduces work to raise a child, and other family benefits. This will promote a more equal sharing of child-raising responsibilities and removes possible financial disincentives for parents who reduce their working time to care for their child.
Long-term care benefits
The agreement clarifies how long-term care benefits should be coordinated across the EU, increasing legal certainty for people who need care and those who care for them. It adds a new definition of long-term care benefits and a list of benefits covered by these rules.
Workers sent to work in another EU country
Workers or self-employed persons sent abroad for up to 24 months (not replacing a previously sent employee) remain insured in the EU country where their employer is established or where they normally pursue their self-employed activity. To tackle fraud and errors, they must have been insured for at least 3 months before being sent abroad.
The agreement introduces a mandatory prior notification system: when a worker carries out activities in another EU-country, the competent authorities of the sending member state have to be notified in advance, except when it concerns business trips and short-term activities lasting no more than 3 consecutive days within a period of 30 consecutive days. The construction sector will not be part of this exception.
Working in two or more member states
For workers carrying out activities in two or more member states, the updated rules provide additional guidance on determining the “registered office or place of business” of the employer or business. This will help establish which member state’s social security legislation applies. To determine the place of business, relevant factors include the place where essential decisions are taken, where the turnover is generated, and the places where the general meetings are held.
Economically inactive citizens
Finally, negotiators agreed, in line with decisions by EU Court of Justice, that economically inactive mobile citizens should have comprehensive sickness insurance coverage in their host member state.
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Gabriele Bischoff (S&D, DE) rapporteur for the file, said: “Today’s committee vote is the next major step towards clearer, fairer and more enforceable rules for everyone who lives or works across borders in the EU. Mobile workers must be able to rely on their social security rights, whether they are looking for work, caring for a child, in need of long-term care, or sent to another member state by their employer. After almost 10 years of negotiations, this agreement shows that Europe can deliver: it protects workers, supports fair mobility, strengthens trust between national systems and strengthens coordination between member states to tackle abuse. All eyes are now on the plenary vote, so we can finally update these long-overdue rules and deliver more legal certainty for workers, companies and member states alike.”
Next steps
Both Parliament and the Council need to adopt the provisional agreement formally before the rules can enter into force.
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