Social security agreement between Switzerland and the UK approved by Swiss government

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Social security agreement between Switzerland and the UK approved by Swiss government

Sponsored by

Sponsored_Firms_deloitte.png
The new bilateral social security agreement between Switzerland and the UK is welcome news

David Wigersma and Tabea Nyfeler of Deloitte Switzerland explain why the new social security agreement between Switzerland and the UK is welcome news considering the UK’s withdrawal from the EU.

The Swiss Federal Council approved a new social security agreement between Switzerland and the UK on August 11 2021. This new agreement is important for ensuring and simplifying the coordination of social security systems of both states due to the UK's withdrawal from the EU.

The agreement will fully enter into force once accepted by the Swiss and UK Parliaments.

One important aspect of the new agreement is the avoidance of split contribution payments for employees working both in the UK and Switzerland. Nevertheless, multistate worker scenarios and set-ups involving an EU country in addition to Switzerland and the UK should be reviewed closely as a split of social security contributions might still be necessary in such cases.

The new agreement grants insured individuals largely equal treatment and easier access to social security benefits. It avoids over-insurance as well as insurance gaps for individuals having touchpoints with both countries’ social security systems. In addition to that, temporary deployments of individuals from one into the other state is facilitated.

This new bilateral agreement largely corresponds to the coordination of social security systems in the new trade and cooperation agreement the UK concluded with the EU and is based on the principles of EU social security affiliation coordination rules, which Switzerland applies under the Agreement on the Free Movement of Persons (FMPA).

Despite establishment of the new bilateral agreement between the UK and Switzerland as well as the new trade and cooperation agreement between the UK and the EU, certain set-ups should be reviewed thoroughly from a social security perspective.

It is important to note that Switzerland does not apply EU social security affiliation coordination rules based on the Fundamental Regulation (EC) No 883/2004 to third country nationals in multistate worker set-ups respectively on assignments between EU countries and Switzerland.

Despite establishing the new bilateral agreement between Switzerland and the UK, for these cases the review of the bilateral agreement between Switzerland and the specific EU countries remains necessary. 

If the bilateral agreement of Switzerland and the EU countries in question does not cover third country nationals, the allocation and splitting of social security contributions might nevertheless be unavoidable irrespective of this new agreement.

Deloitte's view

The new bilateral social security agreement between Switzerland and the UK is welcome news. However, it is still recommended to review scenarios involving UK nationals moving between Switzerland and EU countries. In such cases a split of social security contributions might still be necessary.

 

David Wigersma

Partner, Deloitte Switzerland

E: dwigersma@deloitte.ch

 

Tabea Nyfeler

Senior manager, Deloitte Switzerland

E: tnyfeler@deloitte.ch

 

 

more across site & shared bottom lb ros

More from across our site

If the Reform leader becomes UK prime minister then he may follow the direction of the US in at least one significant way
Trump declared a new national emergency in issuing the order; in other news, Grant Thornton Germany is up for sale and the subject of interest from both its UK and US counterparts
The judgment, which saw Denmark's Supreme Court rely on OECD TP guidance, sets aside more than 15 years of consistent administrative practice, experts have told ITR
Belgium’s new coalition government has gone ahead with a new exit tax regime that could land it in the courts
Brazil’s government has not officially framed the bill as a countermeasure amid trade tensions with the US, but the move is being considered as part of Brazil’s strategic response, one expert tells ITR
Understanding India’s income tax landscape can help charities ensure compliance, optimise tax benefits, and enhance their impact, writes Raghav Bajaj of Khaitan & Co
Tax advisers in Brazil are rising above the country’s notoriously complex tax system to deliver high-quality advisory services, ITR’s exclusive in-house data reveals
ITR’s data has highlighted the US firm’s ambition to become America’s ‘premier’ tax player via a concerted partner recruitment strategy
Jaap Zwaan’s arrival continues a recent streak of A&M Tax investing in the region; in other news, the US and Japan struck a deal that significantly lowered tariff rates
In a world where international tax concepts rely on human activity, Leonard Wagenaar poses existential questions about the future of such ideas when AI is ever-present
Gift this article