From 1 May 2010 under new EU Regulations employees relocating to another European country will automatically pay National Insurance under their home country system for up to 2 years. After the 2 years are up, an application may be made to extend home country payments for up to 5 years. Under the new system however, where employees work regularly both in the UK and overseas for long periods, they may be required to transfer into another National Insurance system.

Employers should review working arrangements of their staff who spend a lot of time overseas to see whether their National Insurance status will be affected.