Those, who work in various EU countries, are subject to the same rules indicating the state, which shall decide on their obligations and rights with respect to social security. But the EU membership not only vests rights, it is also imposes obligations. Everybody, who would like to enjoy the employee benefits or rights, must be subject to both the EU regulation and the legislation of the country, where he or she works. These regulations include, in particular, provisions concerning determination of the legislation applicable, i.e. finding in which country you are insured, if you are employed or you have launched your own business. Having known, to which legislation you are subject to, is very important, since it means knowing, in which country you should pay your social security contribution and which formalities you should complete in order to retain your right to the benefits. Information herein provided is of general nature. In specific cases, prior to making decisions that will affect your professional and personal life, you should consult the relevant authorities or institutions.

Regulations – your guide to the EU legislation

Each EU Member State has its own separate legislation concerning social security schemes. Some superior principles have been adopted, the same for all the states – in order to cover all EU citizens by the same rules, regardless of their place of work or residence. They enable equal treatment of all citizens, their equal access to the benefits and retention of all rights they have already acquired.

Every Member State freely decides who has to be insured under the state’s regulations, which benefits will be granted to the insured, and subject to which terms and conditions and for how long. The state also decides under which circumstances and in case of which event he or she shall pay the contributions. EU regulations guarantee that applying different national legislations shall have no adverse effect for persons exercising their right to move and stay freely in the European Union and the European Economic Area. This enables avoiding situations whereby workers, who have changed their place of stay, are not insured.

The principles are laid down in the following two major legal acts:

REGULATION (EC) No 883/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 29 April 2004 on the coordination of social security systems and

REGULATION (EC) No 987/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems.

These regulations are binding in the European Union Member States:

• Austria,
• Belgium,
• Bulgaria,
• Croatia,
• Cyprus,
• the Czech Republic,
• Denmark (except Greenland and Faro Island),
• Estonia,
• Finland,
• France (including Reunion, Martinique, Guadalupe, and French Guiana),
• Greece,
• Spain,
• Ireland,
• Italy,
• Lithuania,
• Luxemburg,
• Latvia,
• Malta,
• Germany,
• The Netherlands,
• Poland,
• Portugal (including Madera and Azores),
• Romania,
• Slovenia,
• Slovakia,
• Sweden,
• Hungary,
• the United Kingdom,

the European Economic Area – Iceland, Lichtenstein, Norway and in Switzerland (in Switzerland the coordination principles do not yet concern the new Member States).

Provisions of the regulations concern also you, if you move within the EU and you are:

• an employee – under contract of employment, contract of mandate or agency, a frontier worker,
• a self-employed person,
• a farmer,
• an old-age or invalidity pensioner,
• an unemployed person,
• a clerk,
• a student.

The regulations provide for the principles of coordination of national social security systems at granting and disbursing of:

• sickness benefits,
• maternity and equivalent paternity benefits,
• invalidity benefits,
• old-age benefits,
• survivors’ benefits
• benefits in respect of accidents at work and occupational diseases,
• death grants,
• unemployment benefits,
• pre-retirement benefits,
• family benefits.

The key principles, upon which the coordination of social security systems is based:

• principle of equality of treatment - this principle protects persons moving against any discrimination, whether directly or indirectly, in the application of social security legislation,
• principle of place of work – you are subject to social and health insurance in the state, where you work; There are exemptions from this principle: e.g. if you are an employee posted to another country for a period of 12 months or less - you are subject to the legislation of the country of the undertaking that has posted you abroad,
• principle of one applicable legislation – you are subject to regulations of a single state, not of two or three states at the same time,
• principle of retention of acquired rights or export of benefits – if you have been granted an old-age pension, for instance, in one state, you can reside in another country without losing the right to this benefit. The benefits shall be delivered to the place of your actual residency,
• principle of aggregation of insurance periods – if the period of your insurance in one country has been too short to make you eligible for benefits, your period of insurance in every country, where you have worked shall be taken into account.  This principle shall apply even if you receive the benefit from a country, which is not the country of your residence.