Change of employer for single border workers in 2024 (cross-border guide)

Context

In a nutshell

• New Frontier Agreement in force from 1 January 2024
• Mandatory G permit renewal for employer change
• Guaranteed AVS/LPP/LAMal contribution continuity

Key facts

• What: Change of employer for single border workers
• When: From 1 January 2024
• Where: Canton Ticino
• Who: Single cross-border commuters
• Amount: Not specified

The new Frontier Agreement, signed on 23 December 2020 and in force from 1 January 2024, introduces new procedures for changing employers for single border workers. This agreement, ratified in Italy with Law 83 of 13 June 2023, establishes that border workers must renew the G permit at the Cantonal Tax Office (UCC) and the Cantonal Population Office (UCP).

Concrete examples

A border worker resident in Como who works in Lugano must renew the G permit if he/she changes employer. For example, if you move from a consulting firm to a manufacturing company, you need to follow the new procedures. This also applies to those who move from a municipality like Mendrisio to another like Bellinzona.

Regulations and dates

The agreement states that the renewal of the G permit must be requested within 30 days of the change of employer. The legislation requires border workers to submit a declaration of work and a valid employment contract. In addition, it is necessary to demonstrate the continuity of contributions AVS/LPP/LAMal.

Operational checklist

1. Declaration of

Operational details

Procedure for renewing the G permit

The renewal of the G permit is mandatory for all cross-border commuters who change employers. This process requires the submission of a series of documents, including the employment contract with the new employer, the residence certificate, and the civil status certificate. It is important to note that the renewal of the G permit must be carried out within 30 days of the change of employer.

Continuity of AVS/LPP/LAMal contributions

The new Cross-Border Agreement, which came into force on January 1, 2024, guarantees contribution continuity for cross-border commuters who change employers. This means that AVS, LPP, and LAMal contributions will continue to be paid without interruption, ensuring the insurance and pension coverage of cross-border commuters. For example, a cross-border commuter who changes employers in Lugano, with an annual salary of 80,000 CHF, will continue to pay AVS contributions (8.4% of the salary) and LPP contributions (7% of the salary) without interruption.

Documents to be updated

In addition to renewing the G permit, cross-border commuters who change employers must update a series of documents, including the employment contract, the residence certificate, and the civil status certificate. It is important to verify that all documents are up-to-date and compliant with the new regulations. For example, a cross-border commuter residing in Mendrisio must update the residence certificate with the municipality within 14 days of the change of employer.

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Key points

Step-by-step procedure

1. G permit renewal: Submit the required documents to the Cantonal Tax Office (UCC) and the Cantonal Population Office (UCP) within 30 days of changing employers. It is essential to have the updated employment contract, residence certificate, and valid residence permit on hand. 2. Document update: Ensure that all documents are up-to-date and compliant with new regulations. This includes renewing the residence permit, which costs CHF 60 for cross-border commuters, and confirming residence in the home municipality, such as Lugano or Mendrisio. 3. Tax consultation: Consult a tax advisor to assess the specific implications of changing employers. For example, if a cross-border commuter moves from an employer in Lugano to one in Chiasso, the tax rates can vary significantly. An advisor can help calculate the new taxes and plan for tax deductions.

Tools and resources

For further information and support, cross-border commuters can consult the official Canton Ticino website and use the tax calculator available on Frontaliere Ticino. This tool allows you to enter your data and obtain an estimate of the taxes due, facilitating financial planning. For example, a cross-border commuter with an annual salary of CHF 80,000 might discover that changing employers from Lugano to Chiasso could reduce their annual taxes by approximately CHF 1,500.

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