Social security coordination and circular migration within the EU: A Case Study on the pension and unemployment entitlements of Eastern European mobile care workers in Austria

This paper examines the implications of circular migration within the EU for access to social rights, using live-in care workers commuting between Austria and Eastern Europe as a case study. While mobile workers are formally covered by EU social security coordination, the existing regulations fall short of addressing the specific challenges posed by circular migration. The paper explores how legal frameworks in Austria – particularly the Home Care Act and the care allowance system – promote circular migration. It then examines how such migration patterns complicate access to social rights. Circular migrants do not fit neatly into the existing allocation criteria for unemployment benefits within EU coordination, such as the distinction made between workers who return home and those who remain in the employer state. For live-in care workers, termination of employment results in a loss of residence in Austria, they are not integrated into their home labour market, and depend on agencies to seek cross-border jobs. These specific vulnerabilities are not addressed in the existing coordination rules. With regard to pension entitlement, the paper focuses on the ‘Ausgleichszulage’, a non-contributory benefit for low-income retirees, which is restricted to Austrian residents. Although permitted under EU law, this residency requirement effectively excludes circular migrants, who typically retire in their country of origin. 1