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Social security coverage for commuters in the Öresund region during Covid-19

Due to the current corona pandemic, The Swedish Social Insurance Agency has with its Danish counterpart, Udbetaling Denmark, agreed on exemptions with regards to commuters’ social security coverage during Covid-19.

Mutual rules within the EU with regards to employees’ social security coverage can be found in the EC regulation 883/2004. The rules were introduced in order to make sure that an individual is not covered by two different systems at the same time; which would lead to social security contributions being paid in more than one country. Further, the rules also prevent the situation where an individual is not being covered anywhere.

According to the main rule, an employee is covered by the social security system in the country of work. A Swedish resident who daily commutes to work in Denmark is therefore normally covered by the Danish social security system.

If work is performed in at least two countries within the EU, the employee is instead covered by the social security system in the country of residency; provided that at least 25 percent of the work is performed in that country.

Due to the current pandemic, travel restrictions have been imposed into Denmark, and many employers on both sides of Öresund recommend for its personnel to work from home if possible. This has led many Swedish residents who normally commutes to Denmark for work (and Danish residents commuting to Sweden for work) to now having to perform all work from home instead.

If the abovementioned commuter works from home to the extent that 25 percent of the working time is spent in Sweden, a Swedish social security coverage would normally apply. The Danish employer would then need to register as an employer in Sweden and be liable to pay the considerably higher Swedish employer contributions.

Exemptions during Covid-19

Due to the current situation, The Swedish Social Insurance Agency has with its Danish counterpart, Udbetaling Danmark, agreed on exemptions with regards to commuters’ social security coverage during Covid-19. Commuters’ social security coverage will not be affected by restrictions due to Covid-19; in the following situations:

  • If you live in Sweden and normally work in Denmark, your social security situation will not be affected if you due to Covid-19 have to work from your home in Sweden.
  • If you live in Denmark and normally work in Sweden, your social security situation will not be affected if you due to Covid-19 have to work from your home in Denmark.
  • If you have a valid A1 certificate for work in Sweden and Denmark, this will still apply.

A previously issued A1 certificate in accordance with the separate Öresund-agreement between the mentioned countries will therefore accordingly also apply during the Covid-19 restrictions.

However, the exemption will not apply when individuals are changing their work pattern on their own initiative; i.e. if an individual starts working for another employer, starts working as an independent contractor or starts to collect salary from his or her own limited company.

Please reach out to us for further discussions or support.

Marie Liebich and Karolina Engström

Click here to go to the Swedish version of this article

 

Contact
Marie Liebich
+46 72 573 12 40

 

Contact
Karolina Engström
+46 76 853 23 78