Cross-border workers who move within Europe for professional reasons must navigate the complexity of different social security systems. The fundamental rule established by the European Union provides that a worker is subject to the legislation of only one Member State at a time. Consequently, social security contributions must be paid exclusively in the country identified by the coordination rules, ensuring that the worker receives equal treatment compared with citizens of that country.
When professional activity is carried out across multiple countries, understanding where to pay social security contributions and how to protect your rights is essential to avoid penalties or contribution gaps, or the risk of being unable to access benefits to which you are entitled.
How is the country responsible for social security coverage determined?
European legislation establishes specific criteria for determining which national system applies when two or more countries are involved.
The key principle is that the applicable legislation depends directly on three fundamental factors:
- The worker's employment situation (employment, self-employment, unemployment, posting abroad or cross-border commuting).
- The worker's country of residence, while nationality is irrelevant for social security purposes.
- The place where the work is performed.
The welfare systems of different foreign countries can differ significantly from the Italian system. Relying on an accurate analysis helps avoid misunderstandings that could compromise access to welfare or social security benefits.
The cross-border commuter
A worker who resides in one country and works in another European Union Member State (returning home daily or at least once a week) is considered a cross-border commuter.
For this specific category, both employed and self-employed workers are subject to the following rules:
- Payment of contributions: Contributions are paid and the worker is covered by the social security system of the institution or country in which the work is performed.
- Healthcare: Medical care and treatment can also be received in the country of residence by requesting and presenting the S1 form.
- Unemployment: In the event of job loss, the application for unemployment benefits must be submitted in the country of residence.
Please note: Special provisions and arrangements exist for specific bilateral agreements, such as the management of social security and tax relations between Italy and Switzerland.
Working in several countries at the same time: the 25% rule
If a professional or employee carries out their activity in more than one European country, the identification of the applicable social security system follows the active residence rule.
As a general rule, workers are covered by the social security system of their country of residence if they carry out a substantial part of their professional activity there. A substantial part means reaching at least 25% of the total working time and/or income generated. In the case of self-employed workers, parameters such as turnover and the number of services provided in the respective countries are also taken into account when determining this threshold.
If the 25% threshold is not reached in the country of residence, social security coverage shifts to the country in which the employer is established or where the main focus of the activity is located.
Essential European forms (A1, S1, U1)
To maintain continuity of rights when moving from one social security system to another, the European Union has introduced a series of standardised forms that certify the worker's status:
- A1 Form (Certificate concerning the social security legislation which applies): Certifies the country in which social security contributions are being paid. It is essential for workers posted abroad or those working simultaneously in several countries, as it demonstrates exemption from paying social security contributions in the host country. It is issued by the social security institution of the country in which the worker is insured (for example, INPS in Italy).
- S1 Form (Registration for healthcare coverage): Allows workers (and dependent family members) to register with the healthcare system of their country of residence, even if they are insured and working in another country. It is issued by the healthcare authority of the country in which they work.
- U1 Form (Periods to be taken into account for unemployment benefits): Summarises periods of insurance and employment accrued in another country. It is used to calculate and provide unemployment benefits in the country in which the application is submitted and is issued by the employment service or competent social security institution of the last country of employment.
FAQ (Frequently Asked Questions)
Can I pay social security contributions in two European countries at the same time?
No, under European social security regulations, you can only be subject to the legislation of one Member State at a time, and contributions must be paid exclusively in that country.
What happens if I lose my job while working as a cross-border worker?
If you lose your job, you must apply for unemployment benefits in your country of residence (where you permanently live), using the U1 form issued by the institution in the country where you worked.
How does healthcare coverage work if I work in one country and live in another?
You can receive healthcare services and medical treatment in your country of residence by requesting the S1 form from the healthcare authority of the country in which you work and pay contributions.
If I partially work from home, do I need to change my social security system?
Yes, if the activity carried out in your country of residence (including remote working days) reaches or exceeds 25% of your total working time or overall income, social security responsibility shifts entirely to your country of residence.
Plan your cross-border social security arrangements
International mobility and cross-border work offer significant opportunities, but they require careful analysis to avoid double contributions or social security issues. If you need to analyse your specific situation, verify the requirements for European forms or manage your social security transition, the professionals at Studio Barbara Antonini are available to provide tailored advice.
Contact Studio Barbara Antonini for qualified assistance.
