Cross-border workers face double payment risk (cross-border guide)

Context

In brief

• Clash between Switzerland and Italy over cross-border workers' family allowances
• Risk of double payments for cross-border workers
• The Federal Council rules out suspension of payments

Key facts

• What: Dispute over cross-border workers' family allowances
• When: Since 2022, with the new Italian Universal Single Allowance
• Where: Ticino and other border regions
• Who: Switzerland and Italy, with the involvement of INPS
• Amount: Not specified

The Federal Council has rejected the proposal to suspend payments of family allowances to Italian cross-border workers. The decision came in response to a request by Ticino National Councillor Lorenzo Quadri, who had urged a unilateral measure to avoid double payments. The Federal Council clarified that such a suspension would constitute a violation of the Agreement on the Free Movement of Persons. However, the main issue remains: without reliable data from INPS, the risk of double payments cannot be excluded.

The problem lies with the European platform for sharing information on family allowances, which has been active since October 2021. According to Quadri, the Lombardy section of INPS is negligent in correctly uploading data, unlike other countries. This lack of reliable information exposes Switzerland to the risk of making double or excessive payments. The principle of priority of the state of residence of the offspring requires that, if the family of the cross-border worker already receives an allowance in Italy, Switzerland pays only the difference compared to its own allowance. Without accurate information, this calculation becomes impossible.

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Operational details

Analysis of the situation

The controversy between Switzerland and Italy over family allowances for cross-border workers has deep roots. Italy's decision to classify the Universal Single Allowance (AUU) as a universal family policy measure, rather than as a pension benefit linked to work, has complicated the exchange of information. According to the Italian interpretation, the AUU is not a benefit that can be coordinated under Regulation (EC) No 883/2004, which means that INPS is not obliged to automatically transmit data to foreign authorities.

For Switzerland, however, the AUU should fall under European coordination. Without Italian data, it becomes impossible to determine Switzerland's share or the calculation may be unreliable. This creates a misalignment that could have significant repercussions for cross-border workers.

Comparison with the previous situation

Before the introduction of the Universal Single Allowance in Italy, the information exchange system worked more smoothly. The data necessary for calculating family allowances were regularly transmitted, avoiding double payments. With the new system, however, the lack of transparency and the divergent interpretation of European regulations have created a void that could last a long time.

Possible scenarios

If the situation is not resolved, cross-border workers may have to face a series of complications. These include the need to present additional documents to prove payments already received in Italy, or the possibility of having to repay sums received in excess. Moreover, the lack of clarity could deter some workers from accepting job offers in Switzerland, fearing bureaucratic complications.

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Key points

Actions to Take

The current situation requires immediate action from cross-border workers. Here are some concrete steps you can follow to protect yourself from potential complications:

Steps to Follow

1. Check your payments: Use our tax calculator to verify your payments and ensure you don't receive double payments. 2. Save your documents: Keep a copy of all documents related to family allowances received in Italy and Switzerland. 3. Consult an expert: Seek a tax advisor or a lawyer specializing in cross-border labor law for personalized assistance. 4. Monitor updates: Follow the latest news on Italian-Swiss relations and regulations regarding family allowances. 5. Join forums and discussion groups: Join online discussion groups dedicated to cross-border workers to exchange information and advice.

Useful Tools

• Tax calculator: Use our tax calculator to verify your payments and ensure you don't receive double payments.
• Permit comparator: Compare the available options with our permit comparator.
• Health insurance guide: Consult our health insurance guide to ensure you are covered in case of emergency.
• Discussion forum: Join online discussion groups dedicated to cross-border workers to exchange information and advice.

Conclusion

The current situation requires attention and action from cross-border workers. By following the steps above and using the available tools, you can protect yourself from potential complications and ensure you receive your family allowances correctly. Remember to monitor the latest news and consult industry professionals for personalized advice. For more information, visit our website and subscribe to our newsletter to receive regular updates.

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Source: tvsvizzera.it