Telework – how will the insurance rules for cross-border remote work change?
The Czech Republic has entered into a Framework Agreement regarding persons who carry out usual cross-border remote work (so-called teleworking, or telework). The framework agreement is effective from July 1, 2023, and fully replaces the previous agreements concluded with Austria and Germany.
The purpose of the agreement is to enable employees who work remotely for a foreign employer to apply for the application of the insurance regulations of the employer’s state of residence. The default way is they would be compulsorily insured in their country of residence, according to the valid coordination regulations. However, the agreement above applies only to countries that have acceded to the agreement (see the list here). Currently, there are a total of 12 countries, including Slovakia.
In order for the agreement to be applied, it is necessary to fulfill the condition that the teleworking in the country of residence is carried out at the rate of 25% to 50% of the working time. The employee and the employer must apply individually for this procedure to be applied.
You can find more information, including examples, on the CSSA website.