Victor Nakamura· Benefits Analyst, Silverline Media
Asked in Global & Mobility ·
We are a chemicals manufacturer with a site in Basel and about 190 employees who live in France or Germany and commute across the border. Since hybrid working became permanent, most want two or three days a week at home.
Our payroll provider has warned that enough home working shifts social security to the country of residence, which for the French residents would raise employer contributions substantially. I have heard there is now an arrangement allowing more home working than the old 25% limit, but I am getting different answers on what it covers.
What limits have others set in their hybrid policy for commuters, and how are you tracking the days?
6 helpful · 3 insightful · 1 agree · 5 replies · 147 views · 7 following
Accepted answer· by Maya Chen
There are two separate tests with different limits, which is why you are getting different answers. For social security, a framework agreement between a number of European states lets a commuter work from home for just under half their time while staying in the employer country's system, but both countries must have signed. For income tax, each pair of countries has its own treaty rules and the tolerance is generally lower. We took advice per country pair and used the tighter limit for each. Tracking is through the time system: people record home or site each day, with a warning at 80% of the limit.
Read in the conversation ↓
Tessa IversenCBS, CEP
Compensation Manager, Lumen Biosciences
Our policy sets a hard cap of 40% of working time at home for commuters, against 60% for residents. People were unhappy that it differs, but we explained the reason plainly with the cost figures and most accepted it.
Maya ChenWWP
Compensation Manager, Halcyon Financial Group
Accepted answer
There are two separate tests with different limits, which is why you are getting different answers. For social security, a framework agreement between a number of European states lets a commuter work from home for just under half their time while staying in the employer country's system, but both countries must have signed. For income tax, each pair of countries has its own treaty rules and the tolerance is generally lower.
We took advice per country pair and used the tighter limit for each. Tracking is through the time system: people record home or site each day, with a warning at 80% of the limit.
Total Rewards Manager, Steinbach Industrie
Also consider business travel and training days in the country of residence or third countries. They count towards time outside the employer country. We had a sales manager who was comfortably within the home-working cap and still went over because of customer visits in France.
Benefits Analyst, Silverline Media
Victor UedaCEP
Job Architecture Lead, Independent
This cleared up the confusion. We will take advice per country pair as suggested and set the caps on the tighter limit. The point about customer visits counting is one I had missed completely.
