Germany–Switzerland · Social Security
Germany–Switzerland Telework: What Does the 50% Threshold Mean for Social Security?
Since 1 July 2023, the multilateral Framework Agreement on cross-border telework has allowed significantly more work from home in certain Germany–Switzerland arrangements without an automatic switch to the social security system of the country of residence. An employee of a Swiss employer can, subject to the conditions and an application, spend at least 25% but less than 50% of their total working time teleworking from Germany while remaining covered by Swiss social security. This special arrangement does not apply at 50% or more.
The general principle
Without a special arrangement, working at least 25% in Germany as your country of residence can trigger a change of system
An employee who habitually works in both Germany and Switzerland is treated as working in more than one country for social security purposes.
Under the general coordination rules, a key question is whether a substantial part of the employment is performed in the country of residence. At least 25% is the usual benchmark, assessed primarily by reference to working time and/or remuneration.
For an employee resident in Germany with a Swiss employer, regularly working from home for at least 25% of their working time can therefore result in German social security legislation applying under the general rules.
This is precisely where the multilateral Framework Agreement on cross-border telework becomes relevant.
The three ranges
Below 25%, from 25% to below 50%, and 50% or more
General rules
Habitual telework of less than 25% in Germany as the country of residence generally does not constitute a substantial part of the activity there. For a typical employee with a single Swiss employer, Swiss social security legislation can therefore continue to apply.
Framework Agreement
Without a special arrangement, German social security legislation would normally apply. The Framework Agreement allows Swiss coverage to continue on application if all the conditions are met.
Outside the telework exception
At exactly 50% or more, the multilateral Framework Agreement cannot be used. The applicable legislation must be determined under the general coordination rules, subject to any separate individual exception agreement.
25% to less than 50%
Swiss social security despite substantial work from home in Germany
The multilateral Framework Agreement has applied since 1 July 2023 and provides an exception to the ordinary rules for work in multiple countries in certain cross-border telework cases.
An employee resident in Germany with an employer in Switzerland can, subject to the conditions, spend at least 25% but less than 50% of their total working time teleworking in Germany while remaining subject to Swiss social security legislation.
- Country of residence: Germany
- Employer’s country: Switzerland
- Regular work is also performed in Switzerland
- Telework in Germany accounts for at least 25%
- Telework in Germany remains below 50%
- Application for the Framework Agreement required
49.9%
Why the limit is often described as “up to 49.9% working from home”
The Framework Agreement requires cross-border telework in the country of residence to account for less than 50% of total working time.
The upper limit is therefore often described as 49.9% or 49.99%. The legal requirement is that the share remains below 50%; the number of decimal places is not decisive.
A permanent equal split, for example 2.5 out of five equal-length working days, therefore falls outside the simplified telework exception.
Exactly 50%
What happens at 50% working from home in Germany?
If exactly half of the work is performed as telework in Germany as the country of residence, the requirement of “less than 50%” is not met.
The multilateral Framework Agreement cannot then be used as a simplified exception.
Instead, the applicable social security legislation must be determined under the general rules for habitual work in more than one country.
For an employee resident in Germany who performs a substantial part of their employment there, this normally leads to German social security legislation. Whether a separate individual exception agreement is available or appropriate must be assessed separately.
Framework Agreement potentially available
If all the other conditions are met, Swiss social security coverage can generally continue on application.
Framework Agreement unavailable
At exactly 50%, the general coordination rules normally apply, unless a separate individual exception is agreed.
Conditions
Staying below 50% is not enough on its own
The Framework Agreement was designed for typical working-from-home arrangements involving two countries. More complex working patterns may fall outside its scope.
Employment
The special arrangement concerns employees. Self-employment is excluded from the Telework Framework Agreement.
Two participating countries
The typical arrangement involves Germany as the country of residence and Switzerland as the employer’s country. Both must participate in the Framework Agreement.
Qualifying telework
Work is performed from the country of residence using information and communication technology and could generally also be performed at the employer’s premises.
Work in the employer’s country
Alongside telework in Germany, the employee also generally works in the employer’s country, Switzerland.
No habitual work in a third country
Habitual work in another country can prevent the Framework Agreement from applying.
Application required
Swiss coverage does not continue solely because of the percentage. Employer and employee must agree to the application, and the exception must be formally requested and documented by an A1 certificate.
Cases outside the scope
Not all work outside the Swiss office is “telework” under the Framework Agreement
The special arrangement is designed for typical digital work from home involving the country of residence and the employer’s country. It does not cover every form of international work.
Other habitual activities in the country of residence, work in additional countries or self-employment can exclude the arrangement. Multiple employers are possible if they are all based in the same employer country; employers in different countries require a different assessment.
- Assess regular client visits in Germany separately
- Consider habitual work in third countries
- Include all employers in the assessment
- Analyse any self-employment alongside employment
- Do not automatically classify business travel as telework
- Assess complex work in multiple countries under the general rules
Calculating the share of telework
The habitual distribution of total working time is decisive
The social security assessment should consider the actual or expected habitual working pattern. Under the coordination rules, the anticipated situation over the following 12 calendar months is relevant, including work in all countries.
The employment contract alone is not decisive. What matters is how much of the total working time is habitually spent on cross-border telework in Germany as the country of residence.
With a fixed weekly schedule, the proportion is often straightforward to calculate. For variable schedules, part-time work or irregular telework, record the hours over the relevant assessment period. The following day-based examples assume equal-length working days.
| Working arrangement | Share of telework in Germany | Typical treatment |
|---|---|---|
| 1 day in Germany / 4 days in Switzerland | 20% | Below 25%: general rules |
| 1.5 days in Germany / 3.5 days in Switzerland | 30% | Framework Agreement potentially available |
| 2 days in Germany / 3 days in Switzerland | 40% | Framework Agreement potentially available |
| 2.4 days in Germany / 2.6 days in Switzerland | 48% | Framework Agreement potentially available |
| 2.5 days in Germany / 2.5 days in Switzerland | 50% | Framework Agreement unavailable |
| 3 days in Germany / 2 days in Switzerland | 60% | Assess the general rules for work in multiple countries |
Working time rather than presence alone
Part-time work does not change the percentage-based approach
For part-time employees, the relevant ratio is likewise cross-border telework as a proportion of total working time.
For example, if someone works three equal-length days per week and regularly spends one of them teleworking from Germany, the telework share is approximately one third.
Even if the absolute number of days worked from home is small, the proportion can still exceed the 25% threshold.
A1 certificate
Continuing Swiss social security coverage requires an application
The Framework Agreement does not automatically preserve Swiss social security coverage when work from home accounts for at least 25% but less than 50% of working time.
Application of the exception must be requested. A Swiss employer submits the application through the competent Swiss AHV compensation office using the ALPS portal.
If the application is approved, an A1 certificate documents that Swiss social security legislation applies despite regular telework in Germany as the country of residence.
Application in Switzerland
Swiss employers apply for the certificate through their competent AHV compensation office.
Evidence of coverage
The A1 certificate documents the applicable social security legislation for German and Swiss institutions.
Period of validity
Under the Swiss procedure, an A1 certificate for cross-border telework can generally be issued for up to three years. A new application can then be made for a further period.
Retrospective applications
Avoid delaying the A1 application
For applications submitted from 1 July 2024, retrospective coverage under the Framework Agreement is generally limited to three months before the application. During that period, contributions must already have been paid into the Swiss system or the employee must otherwise have been covered by it. The other conditions must also be met.
Employer and employee should therefore assess the social security position of a new permanent working-from-home arrangement before it begins or promptly after its introduction.
For earlier periods, a separate individual exception agreement may need to be considered. Its approval is not guaranteed and is distinct from the standardised procedure under the Framework Agreement.
Changes to the working arrangement
An existing A1 certificate does not replace ongoing monitoring of the telework share
The A1 certificate is based on the working arrangement stated in the application. Material changes must be reported promptly to the issuing institution so that it can reassess the applicable legislation and the certificate.
A permanent increase in telework in Germany to 50% or more is particularly significant.
- Monitor working time regularly
- Record days worked from home
- Report permanent changes
- Record additional countries of work
- Take new employers into account
- Review the A1 if the underlying conditions change
Income tax
The 50% threshold concerns social security only
The multilateral Framework Agreement determines only which social security system applies. It does not change the allocation of taxing rights between Germany and Switzerland.
For income tax, Article 15 and Article 15a of the Germany–Switzerland tax treaty are particularly relevant.
An employee can therefore remain covered by Swiss social security while their employment income is wholly or partly taxable in Germany.
Frontier workers
Frontier-worker tax status and cross-border telework can coexist
An employee resident in Germany with a Swiss employer may qualify as a frontier worker under Article 15a of the tax treaty while regularly working from home in Germany.
Full working days spent at the employee’s home in Germany are generally not treated as non-return days for the 60-day tax rule.
At the same time, if telework accounts for at least 25% but less than 50% of working time, the multilateral Framework Agreement may be needed to retain Swiss social security coverage.
| Topic | Rule | Relevant threshold or criterion |
|---|---|---|
| Frontier-worker status for tax purposes | Article 15a of the Germany–Switzerland tax treaty | Regular return and work-related non-return days |
| Swiss withholding tax for frontier workers | Article 15a of the tax treaty | Generally capped at 4.5% |
| General social security rules for work in multiple countries | Article 13 of Regulation (EC) No 883/2004 | At least 25% in the country of residence generally constitutes substantial activity |
| Telework Framework Agreement | Exception under Article 16 of Regulation (EC) No 883/2004 | At least 25% but less than 50% telework in the country of residence |
| Exactly 50% telework | Framework Agreement unavailable | Assess the general rules |
Typical arrangements
When Swiss social security coverage can continue
One day working from home
With five equal-length working days, one day at home in Germany and four days in Switzerland represent 20% telework. The Framework Agreement for telework of at least 25% but less than 50% is generally unnecessary.
Two days working from home
Two out of five equal-length working days represent 40%. Without an exception, German social security legislation would normally apply. The Framework Agreement can preserve Swiss coverage if its conditions and application requirements are met.
Three days working from home
Three out of five equal-length working days represent 60%. The special telework arrangement does not apply. The general rules for work in multiple countries must be assessed.
Practical approach
Set up a cross-border telework arrangement correctly
Check nationality and personal scope
First establish whether the employee is covered by the European coordination rules and the Framework Agreement. In Germany–Switzerland cases, nationality can affect which rules apply.
Determine the country of residence and the employer’s country
In a typical case, the employee lives in Germany and works for an employer based in Switzerland.
Quantify the working arrangement
Compare time at the Swiss office with telework in Germany by reference to total working hours.
Identify the range: below 25%, 25% to below 50%, or at least 50%
This determines whether the general rules suffice or whether the Framework Agreement is needed to retain Swiss coverage or is unavailable.
Check exclusions
Additional countries of work, multiple employers, self-employment and other habitual activities can affect eligibility.
Apply for an A1 certificate
To retain Swiss coverage with at least 25% but less than 50% telework in Germany, formally apply for the exception.
Assess tax treatment separately
Frontier-worker status, Swiss withholding tax and German income tax follow different rules from social security.
Monitor the actual working arrangement
If the telework share or the structure of the work changes, reassess the A1 certificate and the social security position.
Common mistakes
Frequent misconceptions about the 50% threshold
“Exactly 50% is still allowed”
No. The Framework Agreement requires telework to account for less than 50%. Exactly 50% falls outside the special arrangement.
“49.9% applies automatically”
No. Even below 50%, the other conditions must be met and application of the exception must be formally requested.
“The rule also applies to tax”
No. The multilateral Framework Agreement concerns social security only.
“Business trips are simply telework”
Habitual activities outside the standard telework arrangement can affect eligibility for the Framework Agreement.
“One day per week is always below 25%”
This represents 20% only in a five-day week with equal-length working days. For a part-time employee, the same one day at home can represent considerably more than 25%.
“The A1 applies regardless of the actual working arrangement”
If the relevant circumstances change, particularly the telework share, the applicable social security legislation must be reassessed.
Further tax knowledge
Related topics
Frequently asked questions
The 50% threshold for Germany–Switzerland telework
How much can I work from home in Germany while remaining covered by Swiss social security?
Is exactly 50% working from home allowed?
Why is the 25% threshold important?
What applies below 25% working from home?
Does the 49.9% rule apply automatically?
Who applies for the A1 certificate with a Swiss employer?
How long can an A1 certificate for cross-border telework remain valid?
Does the 50% threshold also apply to income tax?
Can I qualify as a frontier worker for tax purposes while working from home for 40% of my time?
What happens if I increase my share of work from home from 40% to 60% during the year?
Does the Framework Agreement also apply if I regularly work in a third country?
Germany–Switzerland advice
Would you like to work from Germany for a Swiss employer for two or more days per week?
We review your cross-border working arrangement, considering the share of work from home, frontier-worker taxation, German and Swiss income tax, and social security. We identify the tax and social security matters that need to be coordinated with your employer and the competent institutions.
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