Regulation (EC) No 883/2004 (Coordination of Social Security Systems)
Regulation (EC) No 883/2004 coordinates the social security systems of the EU member states – and, via Annex II of the Agreement on the Free Movement of Persons and the EFTA Convention, of Switzerland – by determining which national legislation applies to persons working across borders, aggregating insurance periods and making benefits exportable; it is supplemented by Implementing Regulation (EC) No 987/2009 and has replaced Regulation (EEC) No 1408/71 since 1 May 2010.
Subject Matter and Scope
The regulation does not harmonise national social security systems but coordinates them: each state retains its own benefits, contributions and conditions, while the regulation ensures that persons moving within its scope neither lose entitlements nor are charged twice. Under Art. 3 it covers all classic branches – sickness, maternity, invalidity, old-age, survivors’, accidents at work and occupational diseases, unemployment and family benefits. Personally it applies to nationals of member states, stateless persons and refugees residing in a member state, and their family members. For Switzerland the regulation has applied since 1 April 2012 via Annex II of the Agreement on the Free Movement of Persons, and for Iceland, Liechtenstein and Norway via the EEA and the EFTA Convention respectively. Implementing Regulation (EC) No 987/2009 governs procedures, forms and electronic data exchange (EESSI).
Core Principles
Four principles shape the regulation: equal treatment with nationals, aggregation of periods of insurance, employment and residence, export of benefits abroad, and the applicability of a single legislation. Title II (Art. 11–16) determines that legislation: as a rule the law of the state of employment applies; for postings of up to 24 months the law of the sending state continues to apply; for activity in several states, residence combined with the substantial part of the activity decides. The A1 certificate documents the allocation. For health insurance, Art. 17 et seq. govern the provision of benefits in kind on behalf of another institution: insured persons receive benefits in the state of residence or stay under its legislation at the expense of the competent institution (European Health Insurance Card, document S1).
Relevance for Insurance Practice
For employers with posted workers, the regulation determines in which state contributions are due and whether compulsory health insurance arises in the host country. International health insurance supplements the coordinated social security system but does not replace it; only where the regulation does not allocate the person to the home system do national exemption provisions such as Art. 2 para. 5 KVV in Switzerland come into play.
Legal basis
- EU: Art. 3 (matters covered), Art. 11–16 (applicable legislation), Art. 17–35 (sickness benefits)
- EU: Art. 15 and 19 (posting procedure, certificate of applicable legislation)
- CH: Art. 8 AFMP and Annex II (coordination of social security systems)