Administrative ‘hassle’ threatens border workers from July

VNO NCW/MKB Noord is ‘slightly concerned’ about the situation of cross-border workers who work from home after the end of the corona pandemic. A letter has now been sent to the Ministers of Finance Sigrid Kaag and Karien van Gennip of Social Affairs and Employment, in collaboration with other regional employers’ organisations.

During the corona crisis, cross-border workers who worked at home who had a job in, for example, Germany continued to fall under the tax and social legislation and regulations of the employer’s country. This arrangement will end on 1 July.

Without this arrangement, according to the authors of the letter, it will be a lot of ‘hassle’ for both the frontier worker and his employer to continue working (partly) at home. The employer must then insure him or her socially in the country where he or she lives. At the same time, part of the wages must be taxed in the country where the employer is established. For the cross-border workers in question, this could mean that they can no longer claim the deduction of mortgage interest, the employers’ organizations warn.

In addition, it is possible that the frontier workers come under other schemes with regard to pension, medical expenses or child benefit. During the corona crisis, the regulations of the country of employment still applied to cross-border workers, but that is going to change. VNO NCW/MKB Noord expects that the changing rules will result in an administrative burden as of 1 July.

The current rules will remain in effect for civil servants. The employers believe that there should be no exceptional position and that a good arrangement should be made for all cross-border workers. As July 1 is fast approaching, they are calling on ministers to act quickly.

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