Skip to content On 16 April 2026, the Court of Justice of the European Union (CJEU) ruled in case C-642/24 that the German Law reducing benefits depending on where the worker’s children lived was breaching EU Law.
This means that family benefits must be granted to the worker as though their family members reside in the worker’s country of work.
This ruling confirms and strengthens protections for mobile and posted workers and supports the principle of free movement within the EU.
The case
The CJEU found that this system breached EU rules on equal treatment and the coordination of social security systems, specifically under Regulation (EC) No 883/2004.
The Court determined that such indexation amounts to indirect discrimination against migrant workers and conflicts with the principle that benefits must be awarded as if family members lived in the competent State.
Impact
The decision is expected to have important implications for:
- cross-border and posted workers, ensuring they receive full family benefits regardless of where their children reside; and
- for employers managing an internationally mobile workforce, providing greater legal clarity, but less flexibility with relying on differences in national systems to indirectly reduce compensation-related costs.
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