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Reform of unemployment benefit for cross-border workers

July 2018

Reform of unemployment benefit for cross-border workers

On 21 June in Luxembourg, the 28 EU Employment Ministers adopted the revision of the regulation on the coordination of social security systems in the EU, which provides for reform of unemployment benefit for cross-border workers. Currently, cross-border workers pay into the unemployment benefit system of the country in which they are employed, but have their benefit paid by their country of residence when their contract comes to an end. This will be reversed under the reform.

Once a cross-border worker has worked for at least 12 months in a country, this country will be responsible for paying their unemployment benefit.

In France, this reform should save the benefit system as much as €600 million a year. In Luxembourg and Switzerland, which host many cross-border workers, the reform does not have the same resonance.

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