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      On 15 September 2026, the European Commission adopted the Fair Labour Mobility Package,1 comprising a Communication2 and five legislative proposals.

      Three parts of the package matter most for cross-border social security and posting of workers: a revised European Labour Authority (ELA) mandate with stronger powers to enforce EU labour mobility rules, the digital A1 certificate for social security under the European Social Security Pass (ESSPASS), and a separate e-declaration regulation for posting notifications.

      The European Parliament and the Council of the European Union reached a provisional agreement on the e-declaration on 23 June 2026 (see KPMG Flash Alert 2026-158 for previous coverage).


      WHY THIS MATTERS

      If your company has cross-border workers, expect changes to the way A1 certificates for social security and posting declarations are filed and checked. Filing becomes digital and simpler, and partly standardized in the member states that choose to join the new EU posting declaration portal.

      At the same time, cross-border activity becomes visible to authorities in real time and easier to compare across member states. That cuts both ways: compliance becomes easier to demonstrate, and non-compliance becomes easier to spot. The obligations do not change, but the quality and consistency of what you file will.

      The Commission presents this as a competitiveness measure, estimating €5 billion in economic gains by 2040, with €1 billion of that coming from simplification alone. 


      The Labour Mobility Package in detail

      Stronger European Labour Authority (ELA), stronger enforcement

      The European Commission identified a need to strengthen ELA’s strategic and operational capacity. The targeted revision would:

      1. Strengthen cross-border inspections by giving the ELA tools to run better risk assessments in support of concerted and joint inspections

      2. Explicitly define the ELA’s role in providing information and supporting inspections involving third-country nationals in the EU labour market

      3. Improve information, guidance and support through direct and tailored provision based on the needs of workers and employers

      4. Strengthen and simplify the mediation function, reducing litigation risk and cost in cross-border disputes

      5. Improve mobility support through EURES, while simplifying the framework and cutting the administrative burden for national administrations

      The Communication states that concerted and joint inspections remain voluntary and at the initiative of the member states concerned. The ELA is being equipped to target and support inspections, not to run them on its own authority.

      The third-country national element responds to a documented gap: in 2023, one in five posted workers was a third-country national, a group the Commission sees as more vulnerable, from a lack of information about their rights to gaps in enforcement.

      The e-declaration for posting 

      Of the measures aimed at improving compliance in cross-border work, the central e-declaration for posting is the furthest advanced. It is a separate proposal from 2024 and is already provisionally agreed, while the rest of the package is only starting its legislative journey. It provides a single EU interface, built on the existing Internal Market Information system (IMI), through which a posting is declared on one standard form.3

      Use of the interface is voluntary. Member states are not obliged to join. A member state that chooses to use it must use it exclusively and cannot require an additional national declaration. Member states that do not opt in continue to apply their own portals and requirements.

      Key features of the provisional agreement:

      • A multilingual public interface for posting declarations, hosted on IMI, which member states may use on a voluntary basis but must then be used exclusively
      • A standard form, annexed to the Regulation, which caps the data and documents an opting-in member state can require
      • A document upload function within the interface
      • Scope extended to non-EU service providers
      • A Commission report on effectiveness five years after the tool becomes operational

      The digital A1 certificate (ESSPASS)

      ESSPASS will let workers and employers request and receive social security documents online. This includes the A1 certificate, which shows the country whose social security rules apply to a cross-border worker, and the European Health Insurance Card.

      Workers will keep these documents in the EU Digital Identity Wallet on their phone and show them when asked. Authorities will be able to verify them on the spot. Secure paper versions will still be available.

      The Commission’s own framing of the business benefit is simpler, standardized digital procedures when workers travel abroad, with administrations able to verify status in real time, which it presents as the fraud detection lever.

      Implementation begins once the ESSPASS Regulation is adopted by the European Parliament and the Council of the European Union, with the first stage starting one year after entry into force. Because the clock runs from entry into force rather than a calendar date, no fixed date can be given yet.

      Other highlights in the Labour Mobility Package

      The remaining proposals are about skills and qualifications. Diplomas and other qualifications would be issued in a standard digital format and held in the EU Digital Identity Wallet, so employers and authorities can confirm they are genuine.4 A new EU online tool, linked to national databases, would let qualifications from different countries be compared.

      For regulated professions such as doctors, nurses, engineers, and teachers, recognition would move to a digital procedure with binding deadlines, cutting the wait from around three months to five weeks, with no translations or certified copies required.

      For the first time, there would also be common EU rules for recognizing qualifications obtained outside the EU, with decisions within four months.

      The Communication also sets out two things the Commission intends to propose in 2027. Both are worth noting now.

      1. More social security coordination changes in 2027

      The revision provisionally agreed in April 2026 is not the end of it. According to the Commission, the rules still assume a worker has one employer and one place of work, and much cross-border work no longer looks like that. The next proposal is expected to cover, among others:

      • People who move constantly and have no fixed place of work, for example artists
      • Digital nomads
      • People who move in and out of employment, self-employment, and unemployment
      • Self-employed people working across borders

      The underlying questions are: Which country is paid the contributions? Who collects the contributions? When that is unclear, three things go wrong: workers pay twice or lose rights they have already built up, employers cannot tell which country’s rules apply, and authorities lose money to avoidance and fraud.

      The Commission also wants to improve EESSI, the system national authorities use to exchange social security information about individual workers. The longer-term aim is for countries to send each other certain data automatically, for example when someone starts working again, rather than asking for it case by case.

      2. Cross-border telework rules in 2027

      The Commission wants to make it properly workable for a company to employ someone who lives and works from another EU country. This forms part of its wider work on an optional single set of EU-wide rules that startups and scaleups could choose instead of dealing with 27 national systems.

      The financial case

      The Commission presents the package as a competitiveness measure: an estimated €5 billion in benefits by 2040, of which €1 billion comes from simplification and the rest from faster recognition of qualifications and fraud avoided.

      On digitalization of social security documents, costed over 12 years, the gains sit largely on the authority side:

      Beneficiary

      Estimated saving

      Healthcare providers

      up to €69 million

      Labour inspectorates

      up to €72 million

      Fraud avoided through digital signatures

      up to €277 million

       

      Two points stand out. Labour inspectorates and healthcare administrations are the main beneficiaries, and the saving is in verification effort: capacity currently spent checking documents can be put to better use. And fraud avoided is by far the largest single line at €277 million, which is what makes the financial case: documents that are harder to falsify and faster to verify.


      KPMG INSIGHTS

      Nothing in the package applies yet. ESSPASS and the revision of the ELA’s mandate need to be adopted by the European Parliament and the Council, and the e-declaration is still a provisional agreement awaiting formal approval.

      The direction, though, is clear enough to plan against. Digital A1 certificates, standardized posting declarations and better inspection targeting do one thing together: they let an authority confirm on the spot whether a document is valid and genuine, and whether the worker in front of them is actually covered by it. Non-compliance becomes far easier to spot, and it becomes visible sooner.

      The effect is not only that enforcement becomes more efficient. The net gets wider. When checks take minutes instead of weeks, authorities can cover far more activity with the same people, including the short trips and smaller populations that have rarely been looked at until now. Capacity currently spent verifying paperwork can be redirected to cases that matter.

      What does not change is the obligation itself. The e-declaration reduces the number of portals, not the duty to notify, and notification still has to happen before work begins. And while the standard form caps what an opting-in member state can ask for, that cap is set at EU level: where a member state’s national declaration currently asks for less, the data you have to supply there could end up being more extensive than it is today.

      Practical steps

      • Map where your posting and A1 data sits today, and who owns it, verification in real time exposes gaps between what you filed and what is actually happening
      • File A1 applications and posting declarations from one source of data, so the two cannot tell different stories about the same trip
      • Look at short trips and business travel, not just long assignments, these are the populations a wider enforcement net will reach first
      • Know which of your posted workers are third-country nationals, given the increased focus on this group by the authorities

      Reach out to your usual KPMG contact or the professional listed below if you would like assistance reviewing how your organization files A1 certificates and posting declarations, or if you want to understand what the package will mean for the countries you operate in.

      Contacts

      Daida Hadzic

      Director, Washington National Tax – Global Mobility Services

      KPMG in the U.S.

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      GMS Flash Alert reports on recent global mobility-themed developments from around the world to help you better understand what has changed and what that means for you.


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