Social security coverage primarily involves determining which country an employee is entitled to receive benefits from, as well as the level of benefits provided. This varies depending on national legislation.
Within the EU and EEA, and through bilateral agreements, clear rules define which country is responsible for social security—and whether it is possible to maintain coverage in the home country during temporary stays in another member state.
The employer’s obligation to pay social security contributions follows the coverage. Since contributions can range from minimal to up to 20-40% of the salary, it is crucial to determine the social security jurisdiction before an assignment begins. This enables optimal structuring of salary packages and accurate cost management for projects or other work-related tasks.
At Relocare, we provide expert advice and calculations for social security for companies, employees, and their families. We assist with applications, assess assignment length, purpose, and policies—always in close connection with tax and labor law considerations.
For all business travelers, social security coverage is mandatory. Companies must ensure that employees carry a valid A1 certificate for every business trip—even short day trips. The A1 certificate confirms the right to maintain social security in the home country while working abroad.
Failure to have a valid A1 certificate can result in hefty fines and compliance issues for the company, as well as risk loss of employee benefits such as unemployment, sickness, and maternity benefits. This is also confirmed by the Danish Employers’ Association in their publication “Jobs Abroad” (as of 01/02/2020).
Differences in A1 Application Processes Across Europe
Although the A1 application form is standardized across Europe, data requirements and application procedures differ by country. Some require manual submission, but most now offer online application options. The EESSI system facilitates efficient data exchange between countries.
Relocare has developed the Relocare Compliance App—a simple and flexible digital tool for HR teams to ensure fast and accurate processing of social security applications. Employees can confirm travel in under 30 seconds, compared to up to an hour for manual applications.
Companies gain full visibility of employee travel activity and can easily manage registration requirements under the Posted Workers Directive.
With our expertise, we ensure your company remains fully compliant with social security, assignment, and business travel regulations across the EU and EEA. Avoid costly mistakes, meet legal requirements, and create peace of mind for your employees and your business.
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