Decision on the contribution obligation of an employee residing in Switzerland who was employed by a Dutch employer in Bulgaria

Facts

[A.], a French national residing in Switzerland, was employed by a Dutch company X. in Bulgaria from 2005 to 2007. The Compensation Fund of the Canton of Zurich subjected his income earned during this period to AHV (Old Age and Survivors' Insurance) contribution obligation as an employee without a contributing employer. However, the Social Insurance Court of the Canton of Zurich overturned the objection decision and determined that [A.] was not subject to AHV contribution obligation in Switzerland for those years.

The Compensation Fund then filed an appeal in public law matters with the aim of restoring the objection decision.

Considerations

The Federal Supreme Court dismissed the appeal. It stated that according to the coordination rules of Regulation (EEC) No. 1408/71, the principle of the place of employment (lex loci laboris) generally applies to employees. However, an exception is provided if the employee resides in a Member State other than the one in which the employer is established. In this case, the employee is subject to the legislation of the Member State in which the employer is established.

Since [A.] resided in Switzerland, his Dutch employer was based in the Netherlands, and he…