Revision of the EU Social Security Coordination Rules

On 7 July 2026, the European Parliament adopted the long-awaited revision of the EU social security coordination regulations. The updated rules will enter into force 20 days after approval by the Council of the European Union and their publication in the Official Journal. In many countries, including Hungary, however, implementation will be gradual, meaning that the rules will become fully applicable across the European Union from July 2028.

Within the European Union, each Member State is free to determine the rules of its own social security system, including the eligibility conditions for benefits, the types of benefits provided, the contributions payable, and the methods used to calculate benefits. However, as around 16 million European citizens live or work in another Member State, their protection must also be ensured. To safeguard the social security rights of people moving between EU Member States, as well as Iceland, Liechtenstein, Norway, and Switzerland, the coordination and harmonisation of rules are necessary. By guaranteeing the continuity of social security rights and preventing individuals from being left without coverage or from having to pay contributions in multiple Member States simultaneously, these rules effectively support the principle of free movement. Since 2010, this has been made possible through two regulations: Regulation (EC) No 883/2004 and Regulation (EC) No 987/2009 on the coordination of social security systems.

The objective of the revision was to strengthen the protection of social rights for people working abroad, reduce administrative burdens, and provide greater legal clarity.

Key Changes to the Social Security Coordination Rules

Long-Term Care, Family Benefits, and Restrictions on the Rights of Economically Inactive Persons

• The amended legislation strengthens the protection of social security rights for persons living or working abroad, including through the introduction of a uniform framework for coordinating long-term care benefits and new rules relating to family benefits. The rules also improve equal treatment by clarifying the circumstances under which Member States may restrict access to social benefits for EU citizens who are neither employed nor actively seeking work.

Unemployment Benefits

• The legislation clarifies how periods of employment, self-employment, or insurance completed in different Member States should be taken into account when determining entitlement to unemployment benefits. For example, persons who travel to another EU country to seek employment may continue to receive unemployment benefits from their country of origin for six months. This period may be extended until the end of their entitlement.

Economically Inactive Citizens

• EU citizens who are not employed and are not actively seeking work should not be prevented from contributing to the health insurance system.

Cross-Border Commuters

• The revised rules clarify which Member State is responsible for paying unemployment benefits to cross-border commuters. If a frontier worker has completed at least 22 consecutive weeks of employment, self-employment, and/or insurance in a Member State other than their country of residence, unemployment benefits will be paid by the country where the individual worked.

Global Mobility

Posted Workers

• Before being posted abroad, employees must have been affiliated with the social security system of the sending country for at least three months, instead of the current requirement of 30 days.
• Following a 24-month posting period, continued affiliation with the social security system of the sending country will require an interruption of at least two months between postings. Where workers replace one another on postings, the 24-month period must be assessed collectively for the workers concerned.
• Postings must be notified in advance, meaning that applications for certificates confirming continued coverage under the social security system of the sending country must be submitted to the relevant authorities before the posting begins.

Short Business Trips and Short-Term Postings

• The concept of a business trip has been defined more clearly. During a business trip, employees may attend meetings, seminars, or training events, but may not perform service-related activities or transport goods in another Member State.

Employment in Two or More Member States

•  The revision provides clearer rules on determining the applicable social security legislation in cases involving posted workers and employees working in two or more Member States. The updated rules also help identify the “registered office or place of business” of an employer or undertaking. Relevant factors include the location where key decisions are made, where turnover is generated, and where general meetings are held.

Cooperation Between Authorities

• The new rules strengthen administrative cooperation between national authorities, including improved exchange of information regarding the social security status of persons working abroad. They also introduce clearer procedures and deadlines for resolving doubts concerning the validity of documents, as well as new tools to prevent fraud, abuse, and administrative errors.

Overall, the amendments contribute to making the social security framework for employment within the EU more predictable, transparent, and secure for both employees and businesses. As a result, individuals can live, work, or retire in another Member State while maintaining confidence that their social security rights remain protected.