Crews working on superyachts need to be aware of recent changes in the EU social security system, the impact of these changes on the yachting industry.
As of the 1st of May 2010, EU social security legislation has changed due to the implementation of regulation EC 883/2004.
The primary objective of this new legislation is to unify European social security legislation. However, a by product has been the elimination of the majority of EU social security exemptions that have, until now, been extended to EU resident crew members.
The questions that need asking are:
- Do you have crew members who are resident in the EU and are paid or employed from their country of residence?
- Do you have crew on board an EU registered vessel who are resident in an EU or Reciprocal Agreement (RA) country and who are paid and/or employed from any EU country?
If the answer to either of these questions is yes, then the employer and / or payer of wages will be required to pay EU Employer’s Social Security Contributions in respect of those crew. These liabilities can be as much as 35% of a seafarer’s salary.
In the current economic climate, these liabilities pose a very real threat to the yachting industry and the risks will become even greater following the imminent ratification of the Maritime Labour Convention.
Dominion Marine has worked with a major international accounting firm to design a robust employment solution to mitigate these liabilities and create the most cost effective solution on the market, with many advantages over and above the mitigation of EU Employer’s Social Security Contributions.
Take a look at their brochure, feel free to distribute it to crew. Alternatively contact Dominion Crew Solutions.