The most important facts about A1 certificate summarized. Companies must apply for A1 certificates before business trips abroad in the EU/EEA to prove that the posted workers are still enshrined in German social security.
A package of measures aimed at combating social fraud and wage dumping in the European Union could appear to be a sensible solution at first glance. However, the A1 certificate, which is required for workers in other EU countries to prove their social security, has now assumed an enormous amount of bureaucracy. This can result in employers facing heavy fines if violations occur.
Although EU Regulation No. 883/2004, which has regulated the A1 certificate since 2010, has existed for a long time, it has only been strictly enforced since January 1, 2019. As a result, checks on workers, managers and self-employed people on business trips are increasing, and some countries are punishing violations with severe fines. In such cases, employers often have to pay several thousand euros.
If employees from Germany work temporarily in a European country, for example as part of a business trip, training, an international conference or a trade fair, social security contributions may in theory be incurred in the host country. However, since the employee is already insured in his home country, a double financial burden would be unreasonable.
That is why the A1 certificate introduced, which proves during an inspection that the employee is already paying social security contributions in another country. This makes the matter fairer, but also involves considerable administrative effort. Because for every business trip to another EU or EFTA country, no matter how short, companies must have a Apply for an A1 certificate for your employees.
Even short-term appointments, spontaneous meetings or a short trip across the border in a company car can result in a violation if a valid A1 certificate is not carried.
In general, it is up to HR departments to issue the certificate if employees work for up to 24 months in a business context in other European countries.
To ensure the necessary overview, we have created an alphabetically sorted list of countries in which the A1 certificate is required:
The A1 certificate can be applied for electronically without the need for paperwork. However, the application can be very time-consuming if there is an increased number of service trips. Companies are required to submit the application electronically, either via standard payroll software or via the website www.sv.net. It is advisable to submit the application early to ensure that the certificate is issued before the business trip. If the certificate is not received on time, the printed application can be used as proof.
Depending on the type of insurance the employee has, the A1 certificate can be applied for with the competent authority. If the employee has statutory insurance, the application is submitted to the employee's health insurance. If the employee is privately insured, the German Pension Insurance must be contacted. For employees who are not legally insured and are members of a professional institution, the application is submitted to the Association of Professional Pension Institutions.
It is important to note that the A1 certificate must be applied for separately for each country and each assignment abroad. Employees who regularly work in two or more EU/EFTA countries are an exception. For these employees, a type of permanent certificate can be applied for from the German Liaison Office for Health Insurance Abroad.
If employees are unable to produce the appropriate A1 certificate during an inspection, this has unpleasant consequences. In countries such as France, Austria, Switzerland and Romania in particular, the competent authorities understand Study by KPMG not fun.
In addition, access bans to exhibition centers and workplaces are used as a popular measure to punish employees without certification. In this case, it can happen that your sales team is standing in front of the exhibition building and is not allowed in.
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