Social security legislation is covered by a general EU social security law, i.e. the legislation is therefore valid within the EU/EEA area.
This newsletter focus on employees working in more than one country within the EU/EEA and who spends more than 25% of the time in Denmark, where they are resident.
Social security contributions
In most other EU/EEA countries the social security contributions is often a percentage of the employee’s salary – etc. in Norway where the employee must pay 8,2% of his salary income and the employer must pay 14,1%
Social contributions in Denmark are insignificant. The social security contributions include ATP-contribution, AES etc.
The total cost is approximately DKK 1.200 for the employee and DKK 12.000 for the employer – These amounts are independent of the employee’s salary.
Where do I have to register?
As the main rule you are socially secured in the country where you are working. This applies from the first day of work – attending a trade exhibition / meeting etc. is considered working in this regard.
Does the employee work 1 day in Norway, 1 day in Sweden, 1 day in Germany and 2 days in Denmark, the employee will be obliged to pay social security contributions in all 4 countries, in principle.
However, if the employee is working in more than one country and minimum 25% of the time in Denmark, it is possible to apply for the form A1 to document the employee being socially secured in Denmark, and therefore only having to pay the Danish social security contributions no matter where the employee is working within the EU/EEA. This can now be documented by showing the approved form A1 – see below.
If the employee does not have this approved form A1 during his stays abroad both employee and employer risk being fined for not complying with the legislation, and furthermore be charged the foreign social security contributions.
Previously the EU/EEA countries have not had focus on this, but the tendency is, that more and more countries are starting to focus on this.
Application – form A1
You can apply here.
In the described situation an application can cover up to 1 year at a time. Hereafter the application must be renewed.
It is costless to apply for a form A1.
It is our recommendation that the employers who have employee’s working in more countries within the EU/EEA makes sure to apply for an approved form A1 for their employees.
As the form A1 is only valid for 1 year at a time, it is our recommendation to get the applications put into a system with a yearly renewal, and to orientate the employee’s about always having the approved form A1 with them abroad.
This should avoid getting fines and having to pay the more expensive social security contributions abroad.
The tax department at Beierholm is of course available for any questions or comments to the newsletter.