Switzerland
The European Court of Justice (ECJ) has issued a ruling clarifying the calculation of social security coverage percentages for employees working across multiple countries, including Switzerland.
The ruling pertains to Regulation (EC) No 883/2004 and its implementing Regulation (EC) No 987/2009, which coordinate social security systems within the EU and with Switzerland. These regulations ensure that employees working in multiple member states are subject to only one social security system at a time, preventing double contributions and coverage gaps.
The ECJ's decision simplifies the application of the 25% test used to determine social security obligations, providing clarity for employers managing cross-border workforces. It emphasizes the need for accurate calculation of working time in third countries when assessing social security coverage.
This landmark decision has significant implications for multinational companies and employees engaged in cross-border employment within the EU and Switzerland.
