Germany–Switzerland · Social Security
German or Swiss Social Security When Working in Both Countries?
If you live in Germany and work in Switzerland, including arrangements involving some work from home in Germany, you generally cannot freely choose your social security system. European coordination rules determine whether German or Swiss social security legislation applies. The actual place of work, the proportion of work performed in your country of residence and, for cross-border telework, the multilateral Framework Agreement are particularly important.
Coordination of systems
Tax and social security follow different rules
Whether a frontier worker pays tax on their employment income in Germany or Switzerland does not determine the country in which social security contributions are payable.
Separate social security coordination rules apply between Germany and Switzerland. For EU and Swiss nationals, these include Regulation (EC) No 883/2004 in conjunction with the Agreement on the Free Movement of Persons between Switzerland and the EU.
The rules generally aim to prevent a person from being subject to both countries’ social security systems at the same time.
The single-country principle
As a rule, only one country’s social security legislation applies
The coordination rules aim to prevent people working across borders from having to pay social security contributions in both Germany and Switzerland for the same employment.
The competent country is determined by the person’s actual working arrangements. Neither residence alone nor frontier-worker status for tax purposes determines the outcome.
- Generally, only one social security system applies
- Where the work is actually performed is central
- The country of residence alone is not decisive
- The employer’s country can be relevant
- The share of work from home can change the competent country
- The A1 certificate documents the outcome
Working exclusively in Switzerland
Employees working exclusively in Switzerland are generally covered by Swiss social security
If an employee lives in Germany but performs their employment exclusively and physically in Switzerland, the place-of-work principle generally applies.
The employee is therefore normally subject to the Swiss social security system. Residence in Germany alone does not result in German social security coverage.
This concerns the determination of the applicable social security legislation under the coordination rules. Additional choices and procedures apply to certain branches of insurance, particularly health insurance for frontier workers.
Old-age and disability insurance
Where Swiss legislation applies, contributions are payable in particular to Swiss old-age and survivors’ insurance (AHV) and disability insurance (IV).
Unemployment insurance
The obligation to pay ongoing contributions likewise follows the applicable social security system.
Accident insurance
Where Switzerland is the competent country for social security, Swiss accident insurance rules generally apply.
Working in more than one country
Working at least 25% in your country of residence can bring you within German social security
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 rules, a key question is whether a substantial part of the employment is performed in Germany as the country of residence. The usual benchmark is at least 25%, assessed primarily by reference to working time and/or remuneration. Work in all countries and the expected situation over the following 12 calendar months must be considered.
An employee living in Germany who performs at least 25% of their work there may therefore become subject to German social security legislation under the general rules.
Without a special arrangement
The general rules for work in multiple countries can cause home working in Germany to change the applicable system
| Working arrangement | General social security treatment | Points to consider |
|---|---|---|
| 100% of work performed in Switzerland | Generally Swiss social security | Place-of-work principle |
| Habitually less than 25% of work performed in Germany | For a typical employee with a single Swiss employer, Swiss legislation generally continues to apply | Assess the full circumstances |
| At least 25% of work performed in Germany as the country of residence | German social security legislation generally applies under the rules for work in multiple countries | The Telework Framework Agreement may allow an exception |
| 50% or more working from home in Germany | The Framework Agreement cannot be used | Apply the general rules, subject to any separate exception agreement |
Cross-border telework
With 25% to less than 50% telework, Swiss social security can continue on application
Germany and Switzerland participate in the multilateral Framework Agreement on habitual cross-border telework.
Provided its conditions are met, an employee can spend at least 25% but less than 50% of their total working time teleworking in Germany as their country of residence while remaining subject to social security legislation in Switzerland, where their employer is based.
- Country of residence: Germany
- Employer’s country: Switzerland
- Telework accounts for at least 25% but less than 50%
- The remaining work is generally performed in Switzerland
- No habitual work in a third country
- An application for the special arrangement is required
What counts as telework?
The Framework Agreement does not cover every type of work performed from home
The special arrangement concerns cross-border telework that could generally also be performed at the employer’s premises but is carried out from the country of residence using information technology.
A typical case is an employee of a Swiss company who regularly works in Switzerland and performs part of their office work from their home in Germany.
Other habitual activities in the country of residence, habitual work in a third country or employment by employers in different countries can prevent the Framework Agreement from applying. It is not available for self-employed persons.
Digital work
Work is performed from the country of residence using information and communication technology.
Two countries
The simplified Framework Agreement is essentially designed for arrangements involving the country of residence and the employer’s country.
Application required
The special arrangement does not apply automatically simply because the share of work from home is below 50%.
The 50% threshold
The multilateral Framework Agreement does not apply to telework of 50% or more
The simplified special arrangement requires cross-border telework in the country of residence to account for less than 50% of the employee’s total working time.
The Framework Agreement therefore cannot be used if the share of work from home is 50% or more. The applicable legislation must then be determined under the general coordination rules.
For an employee living in Germany, this level of work in the country of residence will normally result in German social security coverage unless another exception agreement applies.
Examples
Typical Germany–Switzerland home-working arrangements
| Example, assuming five equal-length working days | Without a special arrangement | Framework Agreement |
|---|---|---|
| 1 day working from home out of 5 = 20% | Swiss coverage generally remains possible | Normally unnecessary because the share is below 25% |
| 2 days working from home out of 5 = 40% | The general rule normally points to Germany because a substantial part of the work is performed in the country of residence | Swiss social security can continue on application if the conditions are met |
| 2.5 days working from home out of 5 = 50% | Apply the general rules for work in multiple countries | Framework Agreement not applicable |
| 3 days working from home out of 5 = 60% | German social security legislation normally applies | Framework Agreement not applicable |
A1 certificate
The applicable social security legislation should be formally determined
The A1 certificate documents which country’s social security legislation applies to a person working across borders.
It is particularly important when working in more than one country and when using the Telework Framework Agreement. Under the ordinary procedure for work in multiple countries, the institution in the country of residence determines the applicable legislation.
- Determine the competent social security system
- Document the proportion of work from home
- Take the employer’s country into account
- Apply to the competent institution
- Keep the A1 certificate
- Reassess changes to the working arrangement
Application procedure
Applications to retain Swiss coverage under the Framework Agreement are handled in Switzerland
If an employee of a Swiss employer wishes to remain covered by Swiss social security under the Framework Agreement despite teleworking in Germany for at least 25% but less than 50% of their working time, an application is required.
The application is made in the employer’s country. A Swiss employer applies for the A1 certificate through the competent Swiss AHV compensation office using the ALPS portal.
The A1 certificate issued then serves as evidence that Swiss social security legislation continues to apply to the employment.
Health insurance
Eligible workers living in Germany and working in Switzerland have a special right to choose health insurance
Frontier workers living in Germany and working in Switzerland are generally subject to the Swiss health insurance system where Swiss social security legislation applies.
EU nationals living in Germany generally have a right to choose health insurance in their country of residence under the arrangements between Germany and Switzerland, subject to the applicable conditions. To exercise this right, they must formally apply for exemption from Swiss compulsory health insurance to the competent authority in their canton of work within three months of starting employment.
This right of choice relates specifically to health insurance. It does not place the employee under the German social security system as a whole. Simply retaining German insurance does not replace the formal exemption procedure.
Swiss health insurance
Swiss compulsory health insurance under the Federal Health Insurance Act (KVG) is generally required unless a valid exemption applies.
Choosing German coverage
Eligible frontier workers resident in Germany may choose health insurance in Germany if the statutory conditions and application requirements are met.
Medical treatment in Germany
People insured for healthcare in Switzerland who live in Germany can generally register their entitlement to healthcare in Germany using an S1 certificate.
Nationality
Not every Germany–Switzerland case falls under the same European coordination rules
In relations with Switzerland, the rules described in Regulation (EC) No 883/2004 apply in particular to EU and Swiss nationals and certain other protected groups.
A different legal framework may apply to nationals of third countries. In Germany–Switzerland cases, the bilateral social security agreement may then be particularly relevant.
Especially for internationally mobile employees, nationality should therefore be considered from the outset alongside residence, employer and actual places of work.
Multiple activities
Additional employers, self-employment or work in third countries can change the outcome
Multiple employers
Where there is more than one employer, it is necessary to establish where the employers are based and where each employment is actually performed.
Self-employment alongside employment
An additional self-employed activity can trigger specific coordination rules and should be assessed together with the employment. It can also prevent use of the Telework Framework Agreement.
Work in a third country
Habitual work in another country can exclude the simplified telework arrangement.
Tax and social security
The same home-working arrangement can have different tax and social security consequences
An employee may, for example, remain a frontier worker for tax purposes under Article 15a of the tax treaty even though their share of work from home exceeds the 25% social security threshold.
Conversely, a Swiss A1 certificate does not establish which country has the right to tax employment income under the tax treaty.
Cross-border working arrangements should therefore be considered on at least four separate levels: income tax, wage withholding and payroll, social security, and potential employer obligations.
| Topic | Main rule | Relevant threshold or criterion |
|---|---|---|
| Frontier-worker taxation | Article 15a of the Germany–Switzerland tax treaty | Regular return and work-related non-return days |
| General taxation of employment income | Article 15 of the tax treaty | Actual workdays and other applicable conditions |
| Social security when working in multiple countries | Coordination rules under Regulation (EC) No 883/2004 | Generally, at least 25% constitutes substantial activity in the country of residence |
| Cross-border telework | Multilateral Framework Agreement | At least 25% but less than 50% in the country of residence |
| Swiss withholding tax for frontier workers | Article 15a of the tax treaty | Generally capped at 4.5% |
Practical approach
Determine German or Swiss social security coverage step by step
Establish nationality
First determine which international coordination rules apply to the individual.
Determine the country of residence
For work in multiple countries, the country of residence is central to the assessment.
Identify the employer and the employer’s country
The employer structure and country of establishment are particularly relevant to work in multiple countries and telework.
Allocate workdays and working time by country
Days at the Swiss office, work from home in Germany and habitual activities in other countries must be recorded separately.
Check the 25% threshold
Under the general rules, German social security legislation may apply if at least 25% of the work is habitually performed in Germany as the country of residence.
Check the Telework Framework Agreement
With cross-border telework of at least 25% but less than 50%, Swiss social security can continue if the conditions are met and the special arrangement is applied for.
Apply for an A1 certificate
The determination of the applicable legislation should be formally documented.
Assess health insurance choice separately
Frontier workers resident in Germany may have a special right to choose health insurance, subject to eligibility, procedural requirements and deadlines.
Common mistakes
Frequent misconceptions about Germany–Switzerland social security
Assuming frontier-worker tax status also determines social security
Article 15a of the tax treaty concerns income tax. Social security follows separate rules.
Assuming 40% work from home automatically means German social security
The general rules normally point to Germany at this level. However, the Telework Framework Agreement can allow Swiss coverage where telework is at least 25% but less than 50%.
Treating 49.9% as an automatic safe limit
The special arrangement must be applicable and an application is required. The percentage alone is not sufficient.
Failing to apply for an A1 certificate
Without formal evidence, inspections or cross-border work can give rise to significant uncertainty over the applicable system.
Equating health insurance with the entire social security system
The special right of choice for frontier workers concerns health insurance. It does not automatically change the social security legislation that otherwise applies.
Ignoring third countries and additional activities
Additional activities can change the outcome or exclude the simplified telework arrangement.
Further tax knowledge
Related topics
Frequently asked questions
German or Swiss social security?
Where am I covered if I live in Germany and work exclusively in Switzerland?
Does one day per week working from home in Germany trigger German social security?
What happens with two days per week working from home?
How much can I work from home while remaining under Swiss social security?
What applies at exactly 50% working from home?
Can I choose whether to pay social security contributions in Germany or Switzerland?
What is an A1 certificate?
Does the 25% threshold also apply to income tax?
Can I see a doctor in Germany while covered by Swiss social security?
Can I choose German health insurance as a frontier worker?
Do these rules also apply to third-country nationals?
Germany–Switzerland advice
Do you live in Germany and work partly or entirely in Switzerland?
We review your cross-border working arrangement, considering German and Swiss taxation, frontier-worker status, days worked from home and social security. We identify the matters that need to be coordinated with your employer, payroll team and the competent social security institutions.
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