What is social security in other Member States of the Union?
Each Member State can freely and independently shape its social security system. The Coordination Regulation specifies which national system is to cover an EU citizen when at least two countries are involved. In general, social security is provided by the State of employment and, in the case of non-working persons, by the country of residence. The Regulation is based on four main principles:
- Equal treatment – Workers and self-employed persons from other Member States have the same rights and obligations as nationals of the host State. The right to equal treatment shall apply unconditionally to any worker or self-employed person who originates in another Member State and who has been living in the host State for a certain period of time. Furthermore, where certain situations (e.g. marriage), events (e.g. an accident) or the receipt of social benefits (e.g. persons receiving unemployment benefits are also entitled to tax credits) are attributed to certain legal effects, that Member State shall take into account such situations, events or benefits occurring in another Member State.
- Summation – This rule ensures that previous periods of insurance, work or residence in other countries are taken into account in the calculation of benefits. For example, where national legislation requires a worker to be insured or employed for a certain period before obtaining certain benefits, the principle of aggregation means that the competent Member State must take into account periods of insurance and employment worked in another Member State.
- Principle of one applicable law – This principle prevents undue advantages arising from the right to free movement from being obtained. Each beneficiary is subject to the legislation of only one country and only pays contributions there.
- Export of benefits – Under this principle, social security benefits can be paid throughout the Union and Member States are prohibited from limiting payments to persons residing in their territory. However, this does not apply to all social security benefits; special rules apply, for example, to unemployment benefits.
