Arrangements between the EU and Switzerland

• Principle of operation
• Exceptions to applicability
  • Posting between Switzerland and the EU
  • Working in Switzerland and in the EU
• Special agreements

Principle of operation

Switzerland and the European Union (EU) have agreed that the legislation of only one of the two states should apply to social security in either state. Which that is, is essentially laid down in the coordination rules in Regulation (EC) 883/2004. Regulation (EC) 987/2009 includes further procedures for implementing such rules.

The principle is that the provisions of the state in which the employment takes place - Switzerland or an EU Member State - apply. There are exceptions to this principle.

The regulations apply to Swiss citizens, Union citizens, and to refugees and stateless persons residing in any of the treaty states.

Exceptions to applicability

Posting between Switzerland and the EU

An employee’s place of employment normally changes if the employee is temporarily posted to work in another treaty state. By way of exception, the applicable social insurance legislation does not change if the following criteria are met:

• the expected duration of the posting abroad is not more than 24 months,
• the direct relationship between the employer and the employee is maintained,
• substantial activities of the employer in the state in which he is established,
• the employee is not replaced by another person.

If the employee has been employed in order to be posted, the relevant criterion is which legislation applied to him immediately before being posted (Article 14(1) of Regulation (EC) 987/2009).

The employer informs the competent social insurance institution - where possible, in advance - of the posting of his employee. The social insurance institution then issues an A 1 certificate. In Germany this is done by the employee’s statutory health insurance scheme. If he is not affiliated to a statutory health insurance, the certificate is issued by his pension insurance scheme or the "Arbeitsgemeinschaft Berufsständischer Versorgungseinrichtungen e.V." (Consortium of Professional Association Pension Schemes).
The certificate shows which social insurance legislation is applicable.

Working in Switzerland and in the EU

There are some employees who regularly work in more than one country, for two different employees, for example, or for one employer who is active both domestically and abroad. For such employees, too, the rules of only one state’s social security legislation apply.

Employees who usually work in two or more treaty states are either insured with the social insurance of the state in which they reside or in the state in which their employer is established.

There are no specific provisions that apply to other personnel working in international transport services (professional drivers).

If, in addition to employment, an individual is self-employed, he falls within the scope of the legislation of the country where he is employed (Article 13(3) of Regulation (EC) 883/2004).

The competent social insurance institution issues an A 1 certificate. This is usually the German Health Insurance Liaison Office - International Division (Deutsche Verbindungsstelle Krankenversicherung - Ausland (DVKA)) in Bonn. The certificate shows which social insurance legislation (of which Member State) is applicable.

Special agreements

In individual cases Switzerland and the EU Member States concerned can agree which legislation should apply, by the competent authorities drawing up a special agreement. The relevant application must be lodged in the state whose legislation is to be applied.

In Germany, the German Health Insurance Liaison Office - International Division (Deutsche Verbindungsstelle Krankenversicherung - Ausland (DVKA)) is the competent body for such special agreements.

Any special agreement is written down in an A 1 certificate.