Often, your eligibility for allowances and compensation depends on your place of residence, and therefore, they cannot be "exported" when you move abroad. However, expats can still enjoy certain benefits while living in their host countries. Here's how it works.
Unemployment compensation
To recall, expatriate workers are people who are legally employed under a local contract. They are no longer affiliated with the health insurance or social security scheme in their home country and, therefore, depend on that of their host country. Unemployment compensation will therefore be taken into account if the host country's legislation so provides and under the conditions laid down by its law.
On the other hand, when employees are transferred overseas, they benefit from the conditions laid down in that statute. In other words, they will still be covered by the health insurance or social security scheme in their native country. Unemployment compensation will, therefore, be determined in accordance with the provisions of the host country. Other parameters need to be considered, depending on whether or not the posting is within the European Union (EU) and whether or not there is a bilateral agreement with the country. For example, when a European worker transferred to a non-EU country cannot work but has signed a bilateral social security agreement with their country, that country may compensate its resident.
Unemployment benefits
Unemployment benefit depends on the place of residence. In principle, therefore, it is impossible to be unemployed abroad while receiving unemployment benefits in your country of origin.
For example, a French immigrant in New Zealand who becomes unemployed receives unemployment benefits from France. They are attached to the New Zealand system and will be compensated according to what New Zealand law provides in their case. On the other hand, if they return to France, they might be eligible for the Aide au retour à l'emploi (ARE). Again, everything depends on the conditions of the return and the expat country: whether or not they returned to France immediately after losing their job abroad, whether or not they lived in a European country, whether or not they received unemployment benefits in the host country, etc. But in all cases, any benefits will only be available in the latter's place of residence.
Allowances available to expatriates
The benefits listed below may be paid by the country of origin to its nationals living abroad. However, you should take it as general information, as everything depends on the allowances set up by the country of origin for its nationals living abroad. For example, many one-off grants offered during the COVID-19 pandemic are no longer available.
Governments are reminding people, through their embassies, that it is not their role to cover their nationals who have emigrated abroad. Because living abroad is a personal choice, they urge their citizens to consider the pros and cons of such a choice. In 2022, Switzerland reminded its senior citizens living in Thailand of the law: "Anyone who moves abroad has to assume their own responsibility". Some senior citizens could not afford the Thai reform that required them to take out private health insurance with a basic cover of 100,000 dollars. Switzerland took this opportunity to remind its citizens to anticipate the risks of life abroad. While the State may exceptionally come to the aid of a national who is destitute and "genuinely in need of help", it clearly points out that it will not cover all its citizens living abroad.
Solidarity allowance for the elderly
This type of benefit is intended for senior citizens who are deemed unfit for work (after a medical examination) and living in very precarious conditions. In France, it is reserved for French nationals who have immigrated to a non-European country.
Fixed-term allowance
The expatriate's home country may pay them a fixed-term allowance if they are eligible. This is a one-off allowance paid only in case of an unforeseen professional or family situation.
Allowance for people with disabilities
The health crisis reminds us of the difficult situation many expatriates face, particularly those with disabilities. Some countries, such as France, provide a specific allowance for their disabled citizens living overseas. The beneficiary must be an adult who is 80% disabled and holds an invalidity card that certifies it. Younger people are also eligible for the allowance from 50% disability, subject to review by the Departmental Commission for Special Education.
Family allowances
Expatriate families may continue to receive family allowances from their home country. Again, this depends on whether or not there is a bilateral agreement with their expat country. School grants, back-to-school and family support allowances may also be available for foreign nationals. Special provisions may apply for European nationals living in another EU country (for example, if the spouse continues to live in the country of origin). An expatriate living in a non-EU country may continue to receive certain benefits. However, each application is considered on an individual basis.
The same condition applies in all cases: expatriates are mainly subject to local laws. They are affiliated with their host country's health insurance or social security scheme and, if they are eligible, can claim the benefits provided by their host country.
