After almost a decade of negotiations, the European institutions have reached a provisional political agreement on amendments to EU Regulations 883/2004 and 987/2009 concerning the coordination of social security systems across the bloc. The compromise text, published by the Council in April 2026, would introduce the most significant overhaul of the applicable rules since the current framework was adopted in 2010.
For employers managing international assignments, business travellers and multistate workers, the proposed changes would have practical implications well beyond administrative formalities. The reforms seek to strengthen enforcement, enhance legal certainty, combat fraud and increase digitalisation, while preserving the fundamental principle that a person should be subject to the social security legislation of only one EU member state at a time.
The proposed reforms would make social security coordination more compliance-driven for internationally mobile employees. Employers should prepare for earlier notification obligations, tighter posting conditions, time-limited multi-state worker determinations and greater reliance on digital verification of “A1” certificates, which evidence which EU social security system applies to a worker in a cross-border situation.
Several of the most practical changes relate to when employers must notify authorities, how A1 evidence is obtained and how failures to comply may be sanctioned.
One of the most notable developments is the introduction of a formal obligation to notify the competent authority in advance whenever a worker is posted under article 12—that is, temporarily sent by an employer to work in another member state, while remaining subject to the social security legislation of the sending state. Employers would need to inform the competent institution before activities commence in another member state and request an A1 certificate (or equivalent attestation of applicable legislation).
The proposal also would introduce an automatic acknowledgement of receipt where an A1 certificate cannot be issued immediately. This acknowledgement would serve as evidence that the notification obligation has been fulfilled while the application is being processed.
Significantly, the text confirms that member states may impose proportionate sanctions where employers fail to comply with the prior notification requirement. However, a failure to notify should not, by itself, automatically alter the applicable social security legislation determination, which still must be made under the allocation rules of Regulation 883/2004 as amended.
Recognizing the administrative burden associated with short-duration cross-border activities, the proposal would create exemptions from the prior notification requirement for business trips and activities lasting no more than three consecutive working days within a period of 30 consecutive days. The exemption would not apply to construction activities. Because of the higher incidence of posting-related fraud and workplace accidents in that sector, construction activities would remain fully subject to prior notification and documentation requirements regardless of duration.
The exemption would be particularly relevant for employers that regularly send employees abroad for meetings, conferences, training sessions, technical interventions or other short-term activities that may fall close to the proposed three-working-day threshold.
The proposed amendments also reinforce the requirement that a worker must have a genuine connection with the sending member state before a posting arrangement can be used. Under the revised rules, a worker recruited specifically for posting purposes must already have been subject to the social security legislation of the sending state for at least three months immediately before the posting commences.
Similarly, self-employed persons seeking to rely on the posting provisions must demonstrate that they have genuinely pursued activities in their home state for at least three months before the temporary cross-border assignment.
These measures are designed to counter "social security shopping" and the establishment of artificial links to member states with lower contribution burdens.
The compromise text also addresses situations where employers repeatedly use posting arrangements for the same worker and destination country. Once a worker has completed a 24-month posting period, a new article 12 posting for the same worker and the same host member state cannot begin until at least two months have elapsed.
Although exceptions may be granted in specific circumstances, the proposal aims to prevent the use of consecutive postings as a means of maintaining long-term affiliation with the social security system of the sending state.
The amendments also would affect employees who work in two or more EU member states.
Currently, determinations made under article 13 (which applies to individuals who normally work in two or more member states) often remain valid for extended periods without review. Under the proposed framework, the applicable legislation determination would generally apply for a maximum of 24 months, after which the competent authority would need to reassess the worker's actual circumstances.
In addition, where the determination depends on the location of an employer's registered office or place of business, greater emphasis would be placed on where strategic decisions are taken and where central administration functions are performed. The proposal would require an overall assessment rather than reliance on formal registration details.
This may become particularly relevant for multinational groups operating through multiple entities across Europe.
The proposal would also promote the use of digital tools and electronic processes. Member states would be required to make procedures for determining applicable legislation available online and to progressively modernise information exchange systems.
The text also highlights the importance of the European Exchange of Social Security Information (EESSI), the ESSPASS initiative, which is intended to make it easier for individuals to exercise their social security rights when they are in another European country and future use of the European Digital Identity Wallet as mechanisms for facilitating real-time verification of social security coverage documents.
For internationally mobile employees and their employers, this could eventually lead to faster issuance and easier verification of A1 certificates across borders.
The compromise text remains subject to formal approval by the European Parliament and the Council. Once adopted, most of the substantive changes affecting applicable legislation, posting and A1 procedures would apply 24 months after the Regulation enters into force, giving member states and employers a transition period to adapt their procedures. Transitional protections are also included for existing arrangements.
Although much media attention has focused on the proposed unemployment and family benefit reforms, the changes to the applicable social security legislation framework may prove even more significant for multinational employers. The proposed rules introduce stricter posting conditions, enhanced compliance obligations, tighter controls around A1 certificates and increased digitalization. Together, these measures reflect a clear policy objective: ensuring that social security coverage follows genuine economic activity while strengthening enforcement across the EU.
International employers should begin reviewing their current posting, business travel and multistate working arrangements now, as the proposed rules would likely require updates to mobility processes, A1 management procedures and internal compliance frameworks.
Peter Wuyts
BDO in Belgium
For employers managing international assignments, business travellers and multistate workers, the proposed changes would have practical implications well beyond administrative formalities. The reforms seek to strengthen enforcement, enhance legal certainty, combat fraud and increase digitalisation, while preserving the fundamental principle that a person should be subject to the social security legislation of only one EU member state at a time.
The proposed reforms would make social security coordination more compliance-driven for internationally mobile employees. Employers should prepare for earlier notification obligations, tighter posting conditions, time-limited multi-state worker determinations and greater reliance on digital verification of “A1” certificates, which evidence which EU social security system applies to a worker in a cross-border situation.
Greater Emphasis on Prior Notification and A1 Compliance
Several of the most practical changes relate to when employers must notify authorities, how A1 evidence is obtained and how failures to comply may be sanctioned.One of the most notable developments is the introduction of a formal obligation to notify the competent authority in advance whenever a worker is posted under article 12—that is, temporarily sent by an employer to work in another member state, while remaining subject to the social security legislation of the sending state. Employers would need to inform the competent institution before activities commence in another member state and request an A1 certificate (or equivalent attestation of applicable legislation).
The proposal also would introduce an automatic acknowledgement of receipt where an A1 certificate cannot be issued immediately. This acknowledgement would serve as evidence that the notification obligation has been fulfilled while the application is being processed.
Significantly, the text confirms that member states may impose proportionate sanctions where employers fail to comply with the prior notification requirement. However, a failure to notify should not, by itself, automatically alter the applicable social security legislation determination, which still must be made under the allocation rules of Regulation 883/2004 as amended.
Limited Exemption for Short-Term Activities
Recognizing the administrative burden associated with short-duration cross-border activities, the proposal would create exemptions from the prior notification requirement for business trips and activities lasting no more than three consecutive working days within a period of 30 consecutive days. The exemption would not apply to construction activities. Because of the higher incidence of posting-related fraud and workplace accidents in that sector, construction activities would remain fully subject to prior notification and documentation requirements regardless of duration.The exemption would be particularly relevant for employers that regularly send employees abroad for meetings, conferences, training sessions, technical interventions or other short-term activities that may fall close to the proposed three-working-day threshold.
Stronger Conditions for Posted Workers
The proposed amendments also reinforce the requirement that a worker must have a genuine connection with the sending member state before a posting arrangement can be used. Under the revised rules, a worker recruited specifically for posting purposes must already have been subject to the social security legislation of the sending state for at least three months immediately before the posting commences.Similarly, self-employed persons seeking to rely on the posting provisions must demonstrate that they have genuinely pursued activities in their home state for at least three months before the temporary cross-border assignment.
These measures are designed to counter "social security shopping" and the establishment of artificial links to member states with lower contribution burdens.
Restrictions on Consecutive Posting Arrangements
The compromise text also addresses situations where employers repeatedly use posting arrangements for the same worker and destination country. Once a worker has completed a 24-month posting period, a new article 12 posting for the same worker and the same host member state cannot begin until at least two months have elapsed.Although exceptions may be granted in specific circumstances, the proposal aims to prevent the use of consecutive postings as a means of maintaining long-term affiliation with the social security system of the sending state.
New Rules for Multistate Workers
The amendments also would affect employees who work in two or more EU member states.Currently, determinations made under article 13 (which applies to individuals who normally work in two or more member states) often remain valid for extended periods without review. Under the proposed framework, the applicable legislation determination would generally apply for a maximum of 24 months, after which the competent authority would need to reassess the worker's actual circumstances.
In addition, where the determination depends on the location of an employer's registered office or place of business, greater emphasis would be placed on where strategic decisions are taken and where central administration functions are performed. The proposal would require an overall assessment rather than reliance on formal registration details.
This may become particularly relevant for multinational groups operating through multiple entities across Europe.
Towards Digital Social Security Coordination
The proposal would also promote the use of digital tools and electronic processes. Member states would be required to make procedures for determining applicable legislation available online and to progressively modernise information exchange systems.The text also highlights the importance of the European Exchange of Social Security Information (EESSI), the ESSPASS initiative, which is intended to make it easier for individuals to exercise their social security rights when they are in another European country and future use of the European Digital Identity Wallet as mechanisms for facilitating real-time verification of social security coverage documents.
For internationally mobile employees and their employers, this could eventually lead to faster issuance and easier verification of A1 certificates across borders.
What Happens Next?
The compromise text remains subject to formal approval by the European Parliament and the Council. Once adopted, most of the substantive changes affecting applicable legislation, posting and A1 procedures would apply 24 months after the Regulation enters into force, giving member states and employers a transition period to adapt their procedures. Transitional protections are also included for existing arrangements.
BDO Perspective
Although much media attention has focused on the proposed unemployment and family benefit reforms, the changes to the applicable social security legislation framework may prove even more significant for multinational employers. The proposed rules introduce stricter posting conditions, enhanced compliance obligations, tighter controls around A1 certificates and increased digitalization. Together, these measures reflect a clear policy objective: ensuring that social security coverage follows genuine economic activity while strengthening enforcement across the EU.International employers should begin reviewing their current posting, business travel and multistate working arrangements now, as the proposed rules would likely require updates to mobility processes, A1 management procedures and internal compliance frameworks.
Peter Wuyts
BDO in Belgium