EU social security coordination
The EU provisions on social security coordination do not replace national social security systems with a single European one. Such harmonisation is, from a political point of view, not possible as the social security systems of the member states are the result of long-standing traditions deeply rooted in national culture and preferences.
Rather than harmonising the national social security systems, the EU provisions provide for their coordination. Every member state is free to decide who is to be insured under its legislation, which benefits are granted and under what conditions, how these benefits are calculated and what contributions should be paid. The coordination provisions establish common rules and principles which have to be observed by all national authorities, social security institutions, courts and tribunals when applying national laws. By doing so, they ensure that the application of the different national legislations does not adversely affect persons exercising their right to move and to stay within member states.
Cyprus upon its accession in the European Union on May 1st 2004 applied EU Regulations 1408/71 and 574/72, which they have been replaced on May 1st 2010 by the new Regulations 883/04,987/09 and 1231/10 and 465/2012.