The payment of social security is an area that is still unfortunately not given the importance it deserves when it comes to crew members working on board yachts. A good number of owners, crew managers and crew members alike are either blissfully unaware of these obligations or choose to overlook them. In this respect, it is worth noting that EU Regulations have been enacted to provide common rules in order to streamline the social security rights/obligations of persons moving within the EU (including the EEA and Swiss nationals).
These EU Regulations control social security contributions for crew members working onboard EU-registered yachts and they set out the parameters that need to be taken into consideration when determining what payments need to be made. Ultimately, the purpose behind these laws is to determine if, when and where social security contributions are due. Moreover, these rules also seek to ensure that the seafarer is better protected; as they form part of the social security infrastructure existing with a member state (which can be utilised by paying contributors). Finally, proper adherence to the law will also benefit the employer as it ensures good corporate practice and fewer headaches in the future.
In this respect, it is recommended that yacht owners seek proper legal advice so they can be directed on which social security contributions need to be paid. Assessments are generally based on nationality of crew, domicile, and employer's circumstances. We are witnessing a steady growth for assistance within this area of the law when it comes to Maltese registered yachts as more people are becoming conscious about its existence... This is a positive development.
Originally published by The Islander Magazine.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.