Brexit - This is how the pension insuring of self-employed persons and posted workers is affected by the withdrawal agreement

Brexit, or the withdrawal of the UK from the EU, came into force on 1 February 2020. During the transition period from 1 February 2020 to 31 December 2020, as provided by the withdrawal agreement, the EU’s social security regulations were applicable to workers posted from Finland to Britain.

After the end of the transition period, as of 1 January 2021, the provisions of the withdrawal agreement are applied to persons who were in a cross-border situation on 31 December 2020 and continue to do so without interruption. Such a situation exists when, for example, a person was working in Britain as a posted worker before 1 January 2021 and continues to work in Britain beyond 1 January 2021.

If, however, an employee who was posted from Finland to Britain returns to work in Finland after 1 January 2021, the EU social security regulations are no longer applicable to that individual. The person will, thereafter, be insured in Finland in accordance with the Finnish earnings-related pension legislation. In this case, the withdrawal agreement is not applicable to the employee posted to Britain.

Britain becomes a non-agreement country after the transition period

Along with Brexit, the social security of employees posted to Britain will, in the future, be determined on the basis of both Finnish and British legislation. Primarily, insurance contributions for an employee posted to Britain will be charged in accordance with the Finnish earnings-related pension legislation. Since British legislation is also applicable to the employee it is possible that insurance contributions are charged in Britain as well.

Self-employed persons who move from Finland to work in a non-agreement country may keep their YEL insurance policy valid for a maximum of one year. After one year, if the self-employed person continues to work in a non-agreement country, the YEL insurance policy must be terminated retroactively to end on the last day of working in Finland.

During the course of 2020, the EU and UK carried out negotiations concerning their future relations, including issues related to the social security of persons moving between the countries. The negotiations are still underway and their final outcome may have an effect on the guidelines.