European Social Security
Freedom of movement has consequences for social insurance. The Regulation does not create European social law – it decides which state is competent.
At a glance
Legal basis
Guiding principle
Working within the EU must not lead to disadvantages
One state only
The social security law of a single Member State applies at any time
Covers among others
Unemployment benefit, care allowance, treatment costs, child benefit, pensions
Posting
Up to 24 months in the home system, evidenced by the portable document A1
Who is covered
EU citizens and their family members
The typical question
Which state is competent?
European social security law: what the Regulation governs
Freedom of movement for EU citizens has consequences for social insurance too. These effects are governed by Regulation (EC) No 883/2004. Unemployment benefit can, for example, be transferred abroad, and care allowance can be drawn in another EU country.
The Regulation does not create a European social security law; it coordinates the national systems. It answers one question above all: which state is competent? Because you are always insured in only one Member State.
What else it covers
When and under what conditions this applies is governed by the Regulation. It also applies to treatment costs abroad and to child benefit. Insurance periods from several states are moreover aggregated for the pension.
Aggregation is the most important mechanism in practice. Anyone who has worked in several states often only meets qualifying periods through it – each state then pays the share attributable to it.
Posting: when the assignment is only temporary
Anyone working temporarily in another Member State remains, under certain conditions, in the social security system of their home state for up to 24 months. This is evidenced by the portable document A1, which the employer applies for before the assignment.
For companies this is a compliance matter: if the document is missing during an inspection, back contributions and fines can follow. The distinction from bogus self-employment and the question of the work permit frequently arise at the same time.
Looking for work in another Member State
Anyone drawing German unemployment benefit who looks for work elsewhere in the EU can take the claim with them. According to the European Commission the benefit is usually transferred for three months; an extension to a maximum of six months is possible. The reporting obligations must be observed strictly.
How we support you
The firm also advises you on claiming social benefits within the framework of this Regulation. EU citizens themselves are additionally covered by freedom of movement, which attaches to employment status.
Frequently asked questions about European social security law
Does the Regulation apply outside the EU?
It applies in the European Economic Area and in Switzerland. For third countries, bilateral social security agreements are decisive.
Do I lose my German pension entitlements if I move abroad?
No. Periods already acquired remain and are taken into account in the later pension. Each state pays out of its own periods.
Who issues the A1 document?
The competent institution in the home state, in Germany usually the health insurance fund or the German Federal Pension Insurance. The application is a matter for the employer.
