Since the coronavirus pandemic, working from home has become an integral part of everyday work life for people in Luxembourg and elsewhere.

Member states of the European Union have collaborated on a new agreement for cross-border workers to address the demands of the new work landscape. On Tuesday, Luxembourg's Minister for Social Security, Claude Haagen, signed the new agreement, thus ensuring the Grand Duchy's participation for the next five years.

The agreement targets concerns surrounding social security. Usually, employees are insured in their country of work. Until now, however, the situation at EU level meant that if an individual spent fewer than 25% of their working hours in their country of employment, they would be made to pay social security contributions in their country of residence. This regulation was temporarily lifted during the Covid pandemic. The new agreement signed today lifts the limit from 25% to 50% per year. Cross-border workers will remain insured in their country of employment if they carry out fewer than 50% of their working hours in their country of residence. However, this agreement only applies if the governments of both countries have signed the accord.

In a statement, the Ministry of Social Security confirmed Luxembourg's signature of the agreement, and added that Germany and Belgium were also due to participate. The Belgian government will also have a website where you can read which countries have already signed.

This initiative marks an important step towards deeper integration within the European Union by promoting free movement within the EU's member states, while preserving employees' rights to social security.

"Luxembourg is pursuing its commitment to promoting cross-border mobility, which is so important for the Greater Region, by helping to create a favourable environment for cross-border workers. [...] Geographical borders will no longer be a kind of obstacle to cross-border teleworking; instead cross-border workers will be able to benefit from new working methods, reducing long journeys and gaining a better work-life balance," Haagen said on Tuesday.