In the following lines we have put together basic rules you need to know about A1 social coverage certificate. The guide below answers important questions such as: “What is an A1 certificate useful for?”, “Why do I need to apply for an A1 social coverage certificate?”, “What are the cases when an A1 certificate must be requested from the authorities?”.
An A1 certificate represents a social coverage certificate that must be issued by relevant authorities in an EU member state for a person working on another EU member state’s territory. The main purpose of a social coverage certificate is for confirming the individual’s enrollment in the social security system in that member state. The certificate is issued by the country where the employee remains subject to the social security legislation. The social contributions covered under an A1 certificate refer mainly to: pension, health insurance, child benefits, unemployment.
Any cases of employee mobility through the EU member states generate the obligation to secure the A1 certificate for those employees. Most commonly known cases of international mobility when an A1 certificate application is required are:
The A1 form’s main purpose is to attest that an individual, whenever in any of the situations listed above, remains insured in the social security system of only one EU member state. Thus, the certificate helps avoiding paying mandatory social security contributions in more than one EU country in the same time.
European companies from other EU member states may choose to temporarily post employees to Romania. In the same time, Romanian companies are very frequently posting employees for temporary periods to other EU countries. When doing so, they must comply with the EU social security provisions under the EU Regulation (EC) No 883/2004, which includes also applying for A1 certificates for their employees.
Authorities in the host state can verify if an A1 certificate has been issued for an employee working on their territory. In case the document is not available, the authorities can apply significant fines, along with imposing the employer and employee to start paying social contributions in the host country.
The application for an A1 social coverage certificate may take significant time (from 15 days to 45 days or more), depending on each member state’s applicable procedure. Under the procedure established by Romanian authorities, the application for an A1 certificate takes approximately 30 to 45 days.
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