The country where a person works will bear responsibility for paying unemployment benefits under revised European Union rules, marking a shift affecting cross-border workers across the bloc.
The reform of EU social security coordination rules, first proposed in 2016 and provisionally agreed by co-legislators in April 2026, is now awaiting final approval by the Council, according to a European Parliamentary Research Service briefing. Approval is expected in September after endorsement by the European Parliament plenary in July.
Under the new framework, the member state of employment, rather than the country of residence, will pay unemployment benefits for cross-border workers who have been insured in its system for at least 22 weeks. That responsibility will apply for up to six months, after which it will revert to the country of residence.
The revised rules aim to improve coordination of access to social security for people who live or work in another EU country, while ensuring a fairer distribution of financial burdens between member states and strengthening measures to detect and tackle fraud.
The European Commission’s 2016 proposal sought to amend Regulation 883/2004 on the coordination of social security systems and its implementing Regulation 987/2009. These rules apply to EU nationals, as well as stateless persons and refugees residing in a member state, and extend to their families and survivors. Their scope was later broadened to include legally resident third-country nationals.
Sweeping reform
The reform introduces changes across six areas, including access to benefits for economically inactive mobile citizens, rules applicable to posted workers and those working in two or more member states, long-term care benefits, family benefits, unemployment benefits and other adjustments.
A key change alters the approach to determining which country pays unemployment benefits for cross-border workers, transferring responsibility from the place of residence to the country of employment, where contributions are made.
Under the provisional agreement, employment services in the worker’s country of residence will be required to inform the paying authority, particularly regarding job-search efforts. The implementing regulation also strengthens procedures for activation and job placement.
For posted workers temporarily sent to another EU country, prior notification will become mandatory for all postings, requiring submission of the A1 form to the authorities of the country of employment.
Exceptions
Two exceptions are foreseen: for business travel and for activities lasting up to three consecutive days within a 30-day period. The latter exemption will not apply to the construction sector, where all postings must be notified.
In cases involving work in two or more member states, the “centre of activity” will be determined by where key decisions are taken, supported by indicative criteria such as turnover, locations of general meetings and the usual nature of the business. These provisions aim to identify the responsible authority for benefit payments and address the issue of “letterbox companies”.
The process of applying for and receiving social security certificates will be facilitated through the Electronic Exchange of Social Security Information (EESSI) system, which connects around 3,400 institutions across 32 participating countries, including all 27 EU member states as well as Iceland, Liechtenstein, Norway, Switzerland and the United Kingdom.
Source: CNA
