EP approves new social security rules: unemployment, allowances and care for Romanians living abroad

The European Parliament adopted on Tuesday, with 511 votes in favour, 87 against and 61 abstentions, the revision of rules on the coordination of social security systems within the European Union. The text had been provisionally agreed between the European Parliament and the EU Council. The new rules address unemployment benefits, family benefits, posted workers, people working in multiple member states, and the combating of social security fraud.

What is changing for unemployment benefits

People who move to another member state to seek employment will be able to receive unemployment benefits from the state they have left for six months, a period that may be extended until the entitlement to that benefit expires.

For frontier workers who have been employed, self-employed and/or insured without interruption for at least 22 weeks in a member state other than their state of residence, the benefit will be paid by the state where they worked.

New rules for family benefits and long-term care

The regulation introduces, for the first time, a European definition of long-term care and a list of benefits falling within this category. The new rules also draw a clearer distinction between family benefits granted to compensate for loss of income when a parent reduces their working hours or stops working to care for a child, and other types of family benefits. According to the European Parliament, the aim is a fairer sharing of parental responsibilities and the removal of financial disincentives for parents who choose to work less.

Employed or self-employed workers posted for no more than 24 months will remain insured in the member state where the employer is established or where they normally carry out their activity, provided they are not replacing another previously posted worker. To combat fraud, they must have been insured under the social security system of their home state for at least three months prior to the posting.

A mandatory prior notification system is also being introduced: the authorities in the home state must be informed before a worker begins activity in another member state. An exemption applies to business trips and postings of no more than three days, but not in the construction sector.

Criteria for those working in multiple states

For persons active in two or more member states, the new rules establish clear criteria for identifying which member state's social security legislation applies, including where the company's key decisions are taken, where the majority of turnover is generated, and where general meetings are held.

The regulation also strengthens cooperation between national authorities to detect fraud and abusive practices, including the use of so-called "letterbox" companies — firms formally registered in a member state without any genuine economic activity there. In accordance with the case law of the Court of Justice of the EU, European citizens who are neither working nor actively seeking employment cannot be prevented from contributing to a health insurance system.

Response from MEP Gabriela Firea

MEP Gabriela Firea wrote on Facebook that the new rules bring direct benefits to Romanians in the diaspora: "Good news for the millions of Romanians in the diaspora and their families! They will receive unemployment benefit from the country where they worked and are entitled to this amount for six months if they are looking for work in another country — for example, if they return home to Romania. Children of Romanians working in the diaspora will receive their child allowance from the country where their parents work, even if they live in Romania with their grandparents."

Firea added: "Unemployment benefit will be paid by the country where one has worked and contributed through social security contributions to that state's economy. A person seeking employment in another member state is entitled to receive unemployment benefit for six months instead of three, and the period may be extended for as long as national legislation permits. Children receive family allowances from the country in which their parents work, regardless of whether they live with them or with grandparents in another member state. For the first time, clear rules are being introduced in the context of an ageing population, providing greater support for elderly people, those who are ill, and those with disabilities who are so greatly in need of it."

Position of the file's rapporteur

The file's rapporteur, Gabriele Bischoff (S&D, Germany), stated: "Today we are ensuring that the social security rights of people who move to another member state are properly protected. The rules will be clearer, easier to apply, and simpler for both workers and companies. Cooperation between social security institutions will be strengthened to combat fraud and the use of letterbox companies. For the first time, there will be a European definition of long-term care, and family benefits will be more easily granted across EU borders."

According to the European Parliament, approximately 16 million EU citizens live or work in another member state. The rules aim to facilitate the free movement of persons within the Union and to guarantee continuity of social rights when citizens move, work, or reside in another member state.

Following the vote in the European Parliament, the regulation must be formally adopted by the Council of the European Union, after which it will enter into force upon publication in the Official Journal of the European Union.