Background

Social security systems are governed by Member States. The EU has no competence to harmonise them but has adopted rules to coordinate their functioning, and facilitate life for citizens who live or work in another EU country. The main principles underlying this coordination are that all those covered, including EU citizens, who live or work in another Member State, are subject to the legislation in one country at a time and only pay contributions in that country; that all have the same rights and obligations; and that previous periods of insurance, work or residence in other countries are taken into account when granting benefits.

European Commission proposal

To modernise the rules, in 2016 the Commission proposed to amend Regulation (EC) No 883/2004 on the coordination of social security systems and the related implementing Regulation (EC) No 987/2009. It sought to make the rules clearer and fairer; improve enforcement for those who live and work in different EU countries; and combat fraud and abuse in cross-border situations. The proposal introduced changes in six areas, or 'chapters': (1) access to certain social benefits by economically inactive mobile citizens, (2) applicable legislation for posted workers and persons working in two or more EU countries, (3) long-term care benefits, (4) family benefits, (5) unemployment benefits, and (6) miscellaneous amendments.

Changes to chapters 1, 3, 4 and 6 were provisionally agreed in 2019. The main outstanding issues remained the obligation to notify in advance the intention to post a worker to another Member State (prior notification); the notion of the 'place of business' to determine the applicable legislation (pluriactivity); and the rules on paying unemployment benefits to cross-border workers. After more than 20 trilogue meetings, the Council and Parliament negotiating teams reached a provisional agreement on 22 April 2026.

European Parliament position

Parliament negotiators managed to maintain mandatory prior notifications for the construction sector. Outside this sector, mandatory prior notification will apply to all postings, except for those of less than three days and business trips. Unemployment benefits for cross-border workers will require a 22-week affiliation period before the Member State of employment, and not their country of residence, becomes responsible for paying benefits, for six months. On activity pursued in two or more Member States ('pluriactivity'), the relevant place of business is where key decisions are taken.  

The provisional agreement was confirmed by Coreper on 29 April 2026 and by Parliament's Committee on Employment and Social Affairs (EMPL) on 6 May 2026. The rules now need to be formally adopted both by the Parliament, during the July plenary session, and then the Council.

First-reading report: 2016/0397 (COD); Committee responsible: EMPL; Rapporteur: Gabriele Bischoff (S&D, Germany). For further information see our 'Legislative Train Schedule'.