Social security during employment abroad is determined by social security regulations and agreements between countries

The social security regulations of the EU form a system that aims to consolidate the social security schemes of different countries. A social security agreement, on the other hand, is a bilateral agreement between countries. Regulations and agreements are all used to determine the rights of persons moving between countries to receive social security, and to define the responsibility of the agreement countries in implementing social security benefits. The aim is to secure the continuance of social security when moving from one country to another, and prevent situations where a person would receive double social security benefits or pay double social security contributions. On the other hand, the aim is also to remove the restrictions on the entitlement to social security benefits.

Social security for persons moving between Member States is determined by the social security Regulation of the EU.  Regulation 883/2004 replaces Regulation 1408/71 starting 1 May, 2010. Regulation 883/2004 initially applies only to EU countries and EU citizens. Regulation 1408/71 is thus still applied to persons moving within EEA countries and Switzerland.

EU countries: Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Great Britain, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

EEA countries: Iceland, Liechtenstein and Norway

In addition, Finland has concluded bilateral social security agreements with the following countries: Australia, Chile, Israel, Canada, Quebec and the United States.

Every country has its own rules

The level of social security and the benefits awarded are always determined according to the national legislation of the country in question, but the agreements and regulations determine in which situations and how the national legislation is applied to persons who move from one Member State to another.

One central principle of the social security agreements and the EU Regulation is that people are treated equally. The starting point is that a citizen of the other agreement country is guaranteed the same rights and is subject to the same obligations as the country’s own citizens.

In many countries the social security legislation contains waiting periods of several years which have to be met in order to be entitled to social security benefits. However, on the basis of the social security agreements the insurance periods accumulated in the other country can be taken into account. In this way entitlement to benefits may arise also on the basis of employment periods shorter than the waiting period. However, for instance the amount of the pension is calculated separately in each country on the basis of the insured employment in that country.

The agreements also include a so-called exportation principle, which means that the accrued benefits are paid without restrictions to all agreement countries to persons covered by a social security agreement or the EU Regulation. An awarded benefit may usually not be cancelled, suspended or reduced just because the recipient of the benefit moves from the country which granted the benefit to another agreement country.

The aim of the social security agreements and the EU Regulation on social security is also to arrange matters so that the person is only covered by the legislation of one country at a time. Thus the person is usually insured in and liable to pay social security contributions to only one country at a time in accordance with the system prevailing there. The social security agreements and the EU Regulation determine which country’s legislation is applicable in each case to a person who moves from one country to another. The main principle is that a person is covered by the social security of the country of employment. Further information on the rules regarding insurance is available here .

Without an agreement, no guarantee of a pension

If there is no social security agreement between countries (e.g. Russia as well as Asian states and  most South American countries), each country's own national legislation is applied in both the country of origin and in the country of destination. In that case nothing prevents the levying of double contributions and all restrictions regarding entitlement to social security benefits are in force in both countries. Usually the result is that the contributions have to be paid twice at least partly but the social security benefits received may still be deficient. Usually also the exporting of benefits from the country is restricted.