Following the introduction of the French Social Security Financing Act for 2015 we at Oceanskies Crew have seen a huge increase in demand for social security affiliation to a yacht’s flag state, especially at Malta.
As such we thought it would be useful to outline the requirements and processes to try and provide some clarity to affected crew.
Background
It is important to note that the requirement to affiliate to the social security regime of an EU Member State is not driven by the French Social Security Financing Act for 2015, this simply highlighted a much-ignored EU Regulation; EU Regulation 883/2004 which supersedes national legislation and should apply to all EU Flag states.
EU Regulation 883/2004 provides the rules for the social security affiliation of mobile European workers, such as yacht crew.
Within these rules Malta Flag State requires affiliation of crew with two exemptions:
1 if the crewmember resides in the same EU state where the registered office or place of business of the person/business undertaking employment is located; or
2 the crewmember can elect to remain affiliated to an existing EU state’s social security regime by providing a valid A1 certificate.
Who is eligible for affiliation
- EU nationals residing in the EU
- EU nationals residing outside the EU but working within EU jurisdiction (note 1)
- Non-EU nationals legally residing in the EU (note 2)
Note 1: In the case of a non-EU resident seafarer who is an EU national working onboard a Malta flagged vessel would fall within Art. 11.4 of Reg. 883/2004 as he will be deemed as though he is working in Malta itself.
Note 2: Proof of legal residence will need to be provided such as a valid residence card.
What is the cost
- 10% of salary payable by the crew member; and
- 10% of salary payable by the employer.
Contributions are capped at 46.53 Euros per week, for crew members below the age of 65. Contributions are based on Mondays worked and on this basis for 2019 the total cost would be 2,466.09 Euros payable by both the crew member and the employer.
What are the benefits
Benefits are detailed at:
https://socialsecurity.gov.mt/en/Benefits-and%20Assistance/Pages/Benefits-Information.aspx
On registration:
- EU nationals residing in or out of the EU will receive an A1 and S1 certificate, and the option to apply for an EHIC card
- Non-EU nations legally residing in the EU will receive an A1 certificate, and the option to apply for an EHIC card
On termination of employment all employees will receive an FS3, allowing EU nationals to potentially claim unemployment benefits in the home State.
Contact
For further information or any queries, please do not hesitate to contact:
Tom Becker (English/French): tom@oceanskies.com Tel: +441481711994
Adrian Ogier (English): adrian@oceanskies.com Tel: +441481711994
Thomas de la Mare (English): thomas@oceanskies.com Tel: +441481711994
Sukey Harrisson (English/Spanish): sukey@oceanskies.com Tel: +441481711994