Revision of the EU social security coordination rules
On 23 April 2026, the Council of the European Union proposed amendments to Regulation (EC) No 883/2004 on the coordination of social security systems and Regulation (EC) No 987/2009 (Implementing Directive).
Main points of the proposal
- Aggregate insurance and employment periods from other EU/EEA countries for entitlement to unemployment benefits can take place after one month of uninterrupted employment and unemployment insurance membership/contribution.
- Export of unemployment benefits for job search in another EU/EEA country is extended to six months.
- Unemployed cross-border workers must receive unemployment benefits from their last country of employment after 22 weeks of continuous employment and unemployment insurance membership/contribution. In the case of shorter-term employment, they must receive unemployment benefits from their country of residence.
- When posting employees to other EU countries, several changes are introduced (discussed below).
Working in two or more EU countries
For workers carrying out activities in two or more Member States, the updated rules provide further guidance on determining the "registered office or place of business" of the employer or company. This will help to establish which Member State's social security legislation applies. In determining the place of business, relevant factors include the place where essential decisions are taken, where turnover is generated and the places where general meetings are held.
The decision on where a person should be covered by unemployment insurance, for example, is relevant in cases where the employee works less than 25% from home/in the country of residence. If a person works at least 25% from home/in the country of residence, he or she will continue to be covered by social security (including unemployment insurance) in his or her home country.
Posted employees within the EU
Several changes are being introduced in the area of posted employees:
- It will be a requirement that an A1 document must be obtained before posting.
- it is specified in the legal text that a posting can last a maximum of 24 months (also applies today, but is now written in the legal text)
- an employee can replace another employee if the total period for the employees involved does not exceed 24 months
- workers must be covered by their home country's social security for at least 3 months before posting
- after 24 months there must be a 2-month break before a new posting
Exception to the requirement for an A1 document
The requirement to obtain an A1 document does not apply to business trips or activities with a total duration of no more than 3 consecutive days of work within a period of 30 consecutive days.
However, workers in the construction sector must always have an A1 document.
The construction sector includes all building work relating to the construction, repair, upkeep, alteration or demolition of buildings, and in particular the following work:
- excavation
- earthmoving
- actual building work
- assembly and dismantling of prefabricated elements
- fitting out or installation
- alterations
- renovation
- repairs
- dismantling
- demolition
- maintenance
- upkeep, painting and cleaning work
- improvements
The further process
The agreement was voted through the Council on April 29 by a qualified majority. Denmark and a handful of other countries voted against.
The next step is for the European Parliament to take a position on the agreement. If the European Parliament approves the agreement, it could be finally adopted after the summer break and enter into force on the date specified in the text. There will probably be a deferred application date (from 6-24 months after the date specified in the text), to allow the member states to prepare for the new rules.
The revised rules - if approved - will only apply to the the EFTA countries Iceland, Liechtenstein, Norway and Switzerland, if they decide to adopt them through separate agreements.
- Unemployment insurance in Europe →
- Social security coordination →
EU rules revision
You might also be interested in:
⇒Unemployment Insurance Schemes in EU
⇒Unemployment Insurance in the Nordic countries
Key points of EU Unemployment Insurance coordination
- Transferring periods of work and insurance between EEA countries As an EU citizen you can transfer acquired rights from Unemployment Insurance when moving between EU/EEA contries. In this way it may be easier to become entitled to unemployment benefit in the country you move to.
In the vast majority of the Member states the aggregation rule become fully applicable as soon as you starts to work in the country. However in Denmark, Belgium and Finland you must work some period there before you can use the aggregation rule.
You need a PD U1 document in the country you leave or if the involved countries use electronically exhange (EESSI) there will be issued a SED U002. The countries who issues the highest number of PD U1 documents are Germany, Austria, Switzerland and the Netherlands. The countries who receives most PD U1 documents are Lithuania and Italy. - Transferring unemployment benefits Under certain conditions you can go to another EU country to look for work and continue to receive your unemployment benefits from the country where you became unemployed. The period you can export your unemployment benefits varies from 3 to 6 months in the different Member states.
You have to apply for a PD U2 document in the country you leave, or if you haven't done that the institution in the receiving country must request a SED U008 from the competent institution in your last country.
The countries who issues the highest number of PD U2 documents are Germany, Switzerland, the Netherlands and Denmark. Poland is the country who receives by far most PD U2 documents. - Unemployment benefits coverage According to OECD the net replacement of income after 2 months of unemployment, for a single person without children whose previous in-work earnings were 67% of the average wage varies from 33 percent (Ireland) to 91 percent (Belgium). Read more here..
- Having residence in another EU country than where you work? According to EU social security coordination rules you must only be insured against unemployment in one country at a time. As a generel rule this country is where you work.
In Member states who have compulsory insurance, you will automatically be covered when you start working there.
However you may be insured by your country of residence if you are posted to a EU/EEA country or work in two or more EU/EEA countries at a time. In these situations you can not your self decide where to have unemployment Insurance, but you (or your employer) must apply for a PD A1 document which states in which country you are covered by social security, including Unemployment Insurance. Special rule also apply for cross-border workers ("frontier workers"). - Third-country Nationals working in EU/EEANON-EEA citizens are covered by Unemployment Insurance in the EU countries who have compulsory Unemployment Insurance. In countries with voluntary Unemployment Insurance (Denmark, Sweden and Finland) third-country nationals can become member of an Unemployment Insurance Fund.
In the most countries Third-country nationals can also use the EU Coordination rules when moving within EU/EEA (however not in Denmark, Iceland, Liechtenstein, Norway and Switzerland).
Third-country nationals in short-tem working relations often faces problems with actually get Unemployment benefits, even though they have contributed to the system. This is due to the fact that one normally need a residence permit which allow one to take any job, and also because of a qualifying period in most countries between 6-12 months.