The European Parliament has approved a long-awaited revision of EU rules coordinating social security systems, introducing clearer rules for millions of people who live or work in another EU member state. The reform aims to simplify access to social security benefits, strengthen cooperation between national authorities, and reduce fraud while providing greater legal certainty for mobile workers across the European Union.

What will change?

The updated legislation clarifies which country’s social security rules apply to people who live or work in another EU member state. Among the most significant changes are the following:

Unemployment benefits

Workers who travel to another EU country to look for a job will be able to continue receiving unemployment benefits from their home country for up to six months, with the possibility of extending this until their entitlement expires under national rules.

The legislation also provides clearer rules on how periods of employment, self-employment and insurance completed in different EU countries should be taken into account when determining eligibility for unemployment benefits.

Cross-border commuters

For people who live in one EU country but work in another, responsibility for paying unemployment benefits will generally fall to the country where they worked, provided they have completed at least 22 consecutive weeks of employment, self-employment or insurance there. This change is expected to reduce the financial burden on countries where commuters live.

Posted workers

Employees or self-employed persons temporarily posted to another EU country for up to 24 months will remain insured in their home country’s social security system, provided they are not replacing another posted worker. To combat fraud, workers must have been covered by their home country’s social security system for at least three months before being posted abroad.

The reform also introduces a mandatory prior notification system before workers are posted to another member state. Short business trips and postings that last no more than three days are generally exempt, although the construction sector will not benefit from this exemption.

Long-term care and family benefits

The legislation introduces, for the first time, an EU-wide definition of long-term care benefits and clearly distinguishes between income-replacement family benefits and other family allowances. According to the European Parliament, the changes should make it easier for parents who reduce their working hours to care for children and help distribute childcare responsibilities more equally.

Tougher action against fraud

The updated rules require member states to exchange information more quickly to detect errors, fraud and abusive practices, including so-called “letterbox companies” established solely to exploit differences between national regulations.

How did Hungarian MEPs vote?

The legislation was approved by 511 votes to 87, with 61 abstentions. According to the published voting record:

  • MEPs from the Democratic Coalition (DK) voted in favour.
  • Members of the Tisza Party, Fidesz-KDNP, and Our Homeland (Mi Hazánk) abstained.

Why did the Tisza Party abstain?

In a statement, the Tisza Party’s European Parliament delegation said the agreement contains several provisions beneficial to Hungary, particularly regarding unemployment benefits for cross-border commuters.

However, according to Telex, the party argued that the proposal still places disproportionate administrative burdens on Hungarian businesses, especially in the construction sector due to the stricter notification requirements for posted workers.

MEP Viktor Weisz said the overall direction of the reform is positive but added that “the current compromise does not yet sufficiently protect the interests of Hungarian businesses,” meaning the delegation could not support the text in its present form.

What happens next?

The legislation still requires formal approval from the Council of the European Union, representing member state governments. However, since the Council and Parliament have already reached a provisional agreement, the final adoption is expected to be a formality. Once adopted, the new rules will apply across the EU, affecting an estimated 16 million people who currently live or work in a member state other than their own.

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