Determination of social security provisions

It happens regularly that someone works in several EU countries. For example, you work for a German company in the Netherlands and in Germany or you work as an international truck driver. If you work in several countries, the EU regulation regulates which social security provisions have to be observed. It is important to consider whether you are an employee or self-employed. At the same time, it is important as to whether you also work in your country of residence.

• If the employee works in different countries, the working time in the country of residence determines which legal regulation is applied. If the working time in the country of residence is 25% or more, the social security obligation of the country of residence applies. If the employee works in several EU countries but not in the country of residence, then in principle the social security of the country where the employer is based applies. If you work for different employers in several EU countries but not in the country of residence, then the social security obligation of the country of residence applies.
• If the employee works in several EU countries for an employer who is resident in the country of residence and also works in the country of residence, then the social security obligation of the country of residence applies.
• A different regulation applies to shipping personnel (inland navigation and long-distance journeys). For them, the social security of the country in which the employer is resident applies.
• Different rules also apply to civil servants. Someone who works in several countries but is a civil servant in one country is covered by social security in the country where he is a civil servant. If someone works as a civil servant in both Germany and the Netherlands, the social insurances of both countries apply.
• Since 1 May 2010, special regulations no longer apply to drivers in international freight transport and to so-called “flying personnel”.
• Unemployment benefits (unemployment benefit) are treated as work subject to compulsory insurance. If the employee lives in the Netherlands and has a part-time job of 20 hours per week in Germany and a Dutch unemployment benefit calculated on the basis of 20 hours, then the employee is liable for social insurance in the Netherlands. In this case, the German employer must pay the social security contributions to the Netherlands.

In cases of doubt or in situations where there are no clear rules for employees, it is possible for two participating EU countries to agree on a solution.

For more information, contact the DVKA (Deutsche Verbindungsstelle Krankenversicherung Ausland [German Liaison Office for Health Insurance Abroad]) in Germany and the SVB (Sociale Verzekeringsbank) (Sociale Verzekeringsbank) in the Netherlands.

Employee in the Netherlands, employer in Germany, withholding contributions

As an employer, you are liable to withhold income tax (if your employee has to pay tax on their income), employee insurance contributions and the single insurance contribution. You must set up payroll accounting for these employees in the Netherlands. You register with the Dutch tax office using the ‘Registrierformular Ausländische Unternehmen [Registration form for foreign companies]’. You can find more information on the Dutch tax office website (German language)

Brochures

There are several brochures on the application of social security law within Europe. The Dutch SVB has published a brochure in German describing such cases between the Netherlands and Germany and between the Netherlands and Belgium. The EU has produced a practical guidefor the whole EU.