On 22 April 2026, after almost ten years of negotiations, the European Parliament (the “Parliament”) and the European Council (the “Council”) reached a provisional agreement on revised rules for the coordination of social security systems.1
The revision focuses on unemployment, family, and long-term care benefits, as well as the applicable rules for posted workers. The provisional agreement still requires formal approval by both the Parliament and the Council before entering into force.
The revised rules aim to strengthen coordination and verification in posting situations, making it more difficult for “letterbox companies” to misuse posting rules and place workers under a more favourable, but inappropriate social security regime. Enhanced cooperation and data exchange between national authorities are intended to support more effective checks and enforcement, giving both employers and workers greater legal certainty and reducing the risk of retroactive corrections and penalties.
The revised rules aim to give mobile workers clearer and fairer access to unemployment, family, and long‑term care benefits by tightening and clarifying the coordination rules between member states. They should make it easier to identify which country is responsible for coverage, avoiding gaps in protection or double contributions. Previous insurance and work periods in other member states must be more consistently taken into account when determining entitlements.
The precise scope and mechanics will only be clear once the final legislative text is adopted and published.
The April 2026 press release announces that the European Parliament and the European Council have reached a provisional political agreement to update the rules on coordination of social security systems for people who move or work across borders in the EU.
This long‑awaited reform, almost a decade in the making, is particularly relevant for mobile workers, jobseekers, cross‑border families, people needing long‑term care, and posted workers.
In more detail, the agreement:
The text agreed between Parliament and Council negotiators is not yet law. The following steps still need to happen:
Until that final text and the entry‑into‑application date are known, the current coordination rules remain in force.
Norway, Iceland, Liechtenstein, and Switzerland will follow their own procedures to decide if and when they will adopt the revised EU rules on social security coordination, provided that the revision is approved. As non‑EU states that apply these rules through separate agreements, they do not participate in the EU decision‑making or voting process and therefore independently determine whether to implement any changes.
The content of the provisionally adopted text is not publicly available, but it is reasonable to expect that the changes to the applicable rules for posted workers will include:2
This two‑month interruption requirement would apply more broadly than under the current rules, where it applies only when the new 24‑month posting is to the same country and for the same employer.
One of the more radical proposals was to introduce a prior notification requirement for posting for social security purposes, and this proposal is in the provisionally adopted text, which will significantly change the administration of social security in the future. This particular proposal seems contradictory to the overall European ambition to diminish administrative burden on businesses.
Provided the revision is approved, it is reasonable to expect that the new rules will be in force and applicable for employers and employees around two years after the formal adoption process is completed (to allow for publication, entry into force and transition periods). This timeframe reflects the need for member states and social security institutions to adapt legal frameworks, adjust IT systems, and update administrative practices and guidance.
For employers and mobile workers, this lead time will be important for reviewing existing mobility, posting, and remote‑work arrangements; assessing potential changes in cost, coverage, and compliance risk; and planning any necessary contractual or policy updates in advance. Early scenario planning will be particularly relevant where large populations of mobile workers or complex cross‑border structures are involved.
KPMG is closely following these developments, both in terms of their impact on the underlying legal provisions and on day‑to‑day administration. We will provide further updates and practical guidance as more detail becomes available.
1 Council of the European Union: Council and Parliament strike provisional deal on social security coordination, published on 22 April 2026.
2 Council of the European Union: EU rules on coordination of social security systems, 11 January 2024.
The above information is not intended to be “written advice concerning one or more federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.
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