Social Security Affiliation of Posted Workers

Principle

Regulation (EC) No 883/2004, which also applies to Switzerland via the Agreement on the Free Movement of Persons, follows the principle that a person is subject to the legislation of a single state only – as a rule, the state of employment. For postings, the exception in Art. 12 applies: if the person remains attached to the undertaking in the sending state and the assignment is expected to last no more than 24 months, that state’s social security legislation continues to apply to all branches, including health insurance. This is evidenced by the A1 certificate, which exempts the worker from contributions in the state of employment. Outside the EU/EFTA, bilateral social security agreements with their own time limits apply; where no agreement exists, affiliation follows national law.

Switzerland: Exemption from Compulsory KVG Insurance

Workers posted to Switzerland from EU/EFTA states with an A1 remain insured for healthcare in their home country and are not subject to compulsory insurance under the KVG. For workers posted from third countries who are exempt from AHV/IV contributions under a social security agreement, Art. 2 para. 5 KVV provides for exemption on application: the employer must undertake to ensure that the person and accompanying family members are insured for the entire period at least to the KVG level of benefits for treatment in Switzerland. The application is made to the competent cantonal authority; the Gemeinsame Einrichtung KVG provides the forms for the employer guarantee. The exemption is irrevocable.

Interaction with IPMI

International health insurance does not replace social security affiliation but builds on it. If the person remains insured in the home system, IPMI fills the gaps of the benefits-in-kind principle in the host country – such as private treatment, direct billing and evacuation. Where an exemption under Art. 2 para. 5 KVV is sought, the IPMI policy must demonstrably replicate at least the KVG scope for Switzerland. For postings exceeding 24 months or localisations, affiliation shifts to the host state, which forces a reassessment of the area of cover and premium of the IPMI plan.