Social security rules for remote work simplified once again

European legislation in the field of social security for cross-border workers provides for the possibility of no more than 25% of the time of remote work. That is, if an employee spends more than a quarter of his working time at home, he is obliged to pay social security contributions in his country, and not in the employer’s country. This measure was lifted in Luxembourg during COVID-19 to contain the pandemic.

The lifting of restrictions made it possible not to count the days worked from home and to preserve the health of many people. This arrangement was to be in place until the end of this year. But the European Union has decided to extend this simplified mode of operation until June 30, 2023. It is important to understand that this only applies to social security. Tax regulations for cross-border workers remain in full force — cross the threshold and you’ll have to pay taxes in your home country.

Such a measure will make it possible to prepare an optimal transitional solution at the legislative level. At the same time, cross-border workers will be freed from some of the bureaucracy and will be able to devote their time to more important things.