As the law currently stands, the European regulation (n°883/2004) on the coordination of social security systems stipulates that if employees residing in countries other than their employer’s state spend more than 25% of their time working remotely, all their social security contributions must be paid in their country of residence.
In other words, a cross-border worker employed by a company in Geneva cannot work more than a quarter of his working time at home if he wants to join a Swiss social insurance scheme, which is cheaper than in France.
There is also a more complex tax component, dependent on the agreement between Switzerland and France, and treated differently in each canton.
In Geneva and Fribourg, cross-border commuters pay taxes in France from the first hour they work in France, even though they work for a company in Switzerland.
The other cantons (Vaud, Valais, Neuchâtel Jura, Bern, Basel) are taxed exclusively in Switzerland, in return for a 4.5% compensation payment to France.
A Republican senator from Haute-Savoie, Cyril Pellevat, proposed in May that the telecommuting quota be increased from 25% to 40%, which would allow a French resident employed in Switzerland (or from any European country working in another continental state) to work two days at home without paying contributions in France. In our opinion, the 25% rule is unlikely to change, as no EU member state would agree to waive the social security contributions due under article 883.
As we can see, a number of projects are underway in Brussels as a result of this new post-Covid teleworking trend. We hope that a solution can be found, and we’ll be sure to keep you informed on the subject.
For more details, here is the OFAS link of 20.06.2022
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