(31.05.2023) Switzerland has recently adjusted the regulatory framework for cross-border workers. While a taxation agreement has been signed with France, another agreement on social security is expected to relax rules for employees residing in Germany and Austria.
Since January 1, 2023, French cross-border workers can telework for up to 40% of their annual working time without jeopardizing their tax regime. Prior to 2020, this limit was set at 25% of working time.
Since the beginning of the health crisis, the restrictive measures implemented on both sides of the border from May 2020 pushed the two countries to agree on a transitional agreement to avoid requiring workers confined to their homes to change their tax regime. Extended several times, the agreement finally expired in 2022.
However, the Franco-Swiss agreement does not provide for any changes regarding affiliation to social security. Under European law, anyone who performs more than 25% of their work in a specific country – for example, their country of residence – must be affiliated with the local social security system, regardless of whether their employer is located in another state.
Although an exceptional regime regarding social security affiliation was established during the health crisis, it will end on June 30, 2023.
Nevertheless, the Confederation has expressed its intention to sign an agreement with certain countries in the European Union (EU) and the European Free Trade Association (EFTA), including Germany and Austria. This new agreement aims to increase the maximum threshold of work activity below which the employee can remain affiliated with the local social security of the state where their employer is located. This threshold would be raised to 50% instead of the current 25%.
Starting from July 1, 2023, a German or Austrian cross-border worker should be able to perform up to 49.99% of their work from home while remaining affiliated with Swiss social security.
Last modification 31.05.2023
