In principle, employees are covered by social security in the country where they work.
It regularly happens that people work in several EU countries “at the same time”. This is already the case if you live in Germany and work in a home office for a Dutch company or visit German customers for them. This is also the case if you deliver to customers in several countries as a truck driver.
European law stipulates that a person can only be covered by the social security legislation of one country. The country which is responsible is determined in EU Regulation 883/2004. It is important to know whether you are self-employed, an employee or a civil servant, and whether you also work in Germany (your country of residence).
Regulations according to occupational groups
General provisions
Income tax
The individual countries have regulated to which country you have to pay your income tax by making double taxation agreements with each other. As a rule, income must be taxed in the country where it was earned, i.e. in the country where the work was done. So if you work in two countries, you usually also pay income tax in two countries. This is called a salary split.
Working in more than 2 countries (including international drivers)
If you are employed by a company outside your country of residence and work in more than these two countries, you have to follow different rules. In this case, the days worked in the employer country are also taxed there, the rest in the country of residence.
Caution: There is an exception for employees who work more than 183 days in a third country. The GrenzInfoPunkte or the Team GWO can help here.
A1 certificate
Anyone who regularly works in more than one country should apply for an A1 certificate. This determines which social security law the person will be treated under. As a rule, the application must be made in the country of residence. In Germany, the DVKA (Deutsche Verbindungsstelle Krankenversicherung Ausland [German Liaison Office for Health Insurance Abroad]) is responsible for this.
The certificate not only serves as proof that employees are covered by social insurance. It is necessary in order to avoid having to pay taxes twice.
It is possible for two EU countries to agree to deviate from the rules. For more information, contact the health insurance fund or DVKA in Germany and the SVB (Sociale Verzekeringsbank) in the Netherlands.
Unemployment benefit
In the EU, it is clearly regulated which social security law applies when someone works in another country. Unfortunately, the rules are not clear when it comes to (partial) unemployment benefit.
In most EU countries, the social security law of the country paying the unemployment benefit applies. This means that social security contributions have to be paid in the country where the benefit comes from.
In the Netherlands, the situation is different:
- If the unemployment benefit is less than 25% of the total income, the social security law of the country of work applies.
- If the unemployment benefit is 25% or more of the total income, the social security law of the country from which the benefits come applies.
In any case, you should ask for anA1-certificate (see above).
Employees
In the EU, the responsibility of the social security systems is determined by the so-called 25% rule. This clearly regulates in which country employees are covered by social security – and therefore also in which country the contributions must be paid.
The 25% rule (simplified)
For employees of an employer
working
in the country of residence
The social security law of the
country of employment applies
working
in the country of residence
The social security law of the
country of residence applies
For employees of two employers in different countries (but not in the country of residence)
The social security law of the
country of residence applies
For employees of two employers in different countries (including the country of residence)
working
in the country of residence
The social security legislation of the
country of employment which is not the country of residence, applies.
working
in the country of residence
The social security law of the
country of residence applies
If you have more than two employers, it gets more complicated.
Contact one of them .
No exception is made for international truck drivers. Here, too, the 25% rule applies. Read more information here.
Self-employed
In the case of self-employment, the question of social security law becomes relevant if work is done regularly (at least one day per month) in XXXX. You should apply for an A1 certificate for all countries in which you usually work (see above).
If the work in the country of residence accounts for 25% or more of the total working time and/or remuneration, the social security law of the country of residence is applicable. Otherwise, the social security law of the country where the substantial part of the activities is carried out is applicable.
Whether an activity is classified as employment or self-employment depends on the regulations of the respective country in which the activity is carried out! The same activity can therefore be classified differently in different countries. The GrenzInfoPunkte will be happy to help you.
Employees and self-employed persons at the same time
If you work as an employee in one country and as a self-employed person in the other, you are always covered by the social security legislation of thecountry where you work as an employee.
If you work as a self-employed person in several countries without being employed, you should contact a .
Civil servants
There are exceptions for civil servants. For civil servants, the social security law of the country in which the civil servant is employed applies.
If someone works in several countries and is considered a civil servant in one of these countries, they are also covered by social security in that country.
If someone is a civil servant in several countries, the 25% rule applies (see Salaried employees).
Taxes are generally paid in the country of the employer. There are exceptions for civil servants with the nationality of their country of residence. Please contact a .
Special regulations for seafarers
In general, the territory of the ship applies. Work on board is therefore considered to be carried out in the country whose flag the ship is flying.
If wages are paid by a company based in another country, the legislation of the company’s headquarters applies.
You should obtain all information in advance to clarify your situation clearly.
Crew members of Rhine vessels
The Convention on Social Security for Rhine Sailors applies here.
In case of doubt contact a .
In situations involving international transport (by road or not), it is always important to have a picture of all the relevant facts. Applying for an A1 is an important part of getting certainty in the overall situation.