Arrangements within the EEA

• Principle of operation
• Exceptions to applicability
  • Posting of EEA citizens within the EEA
  • Working in several EEA Member States
  • Special agreements

Principle of operation

The European Economic Area (EEA) is comprised of the EU Member States plus Island, Liechtenstein and Norway.

In the context of social security systems, the legislation of only one EU Member State is applicable at any one time. The legislation of which state is to apply is laid down in the coordination rules contained in Regulation (EC) No 883/2004. There are additional implementing provisions in Regulation (EC) No 987/2009.

The regulations apply to Union citizens (nationals of EU Member States), to Icelandic, Norwegian and Liechtenstein citizens and to refugees and stateless persons residing in an EEA state.

The principle is that the legal provisions of the EU Member State in which the employment takes place apply. There are, though, a number of exceptions to this principle.

Exceptions to applicability

Posting of EEA citizens within the EEA

An employee’s place of employment normally changes if the employee is temporarily posted to work in another state of the European Economic Area (EEA). By way of exception, the applicable social insurance legislation does not change if the following criteria are met:

• the expected duration of the posting abroad is not more than 24 months,
• the direct relationship between the employer and the employee is maintained,
• substantial activities of the employer in the state in which he is established,
• the employee is not replaced by another person.

If the employee has been employed in order to be posted, the relevant criterion is which legislation applied to him immediately before being posted (Article 14(1) of Regulation (EC) 987/2009).

The employer informs the competent social insurance institution - where possible, in advance - of the posting of his employee. The social insurance institution then issues an A 1 certificate. In Germany this is done by the employee’s statutory health insurance scheme. If he is not affiliated to a statutory health insurance, the certificate is issued by his pension insurance scheme or the Arbeitsgemeinschaft Berufsständischer Versorgungseinrichtungen e.V. (Consortium of Professional Association Pension Schemes).
The certificate shows which social insurance legislation is applicable.

Working in several EEA Member States

There are some employees who regularly work in more than one country, for two different employees, for example, or for one employer who is active both domestically and abroad. For such employees, too, the rules of only one EEA state’s social security legislation apply.

EU, Icelandic, Norwegian and Liechtenstein citizens are either insured with the social insurance of the state in which they reside or in the state in which their employer is established.

No specific provisions apply to other personnel working in international transport services (professional drivers, cabin crew).

If, in addition to employment, an individual is self-employed, he falls within the scope of the legislation of the state in which he is employed (Article 13(3) of Regulation (EC) 883/2004).

The competent social insurance institution issues an A 1 certificate. This is usually the German Health Insurance Liaison Office - International Division (Deutsche Verbindungsstelle Krankenversicherung - Ausland (DVKA)) in Bonn. The certificate shows which social insurance legislation (of which EEA state) is applicable.

Special agreements

In individual cases the EEA states concerned can agree which legislation should apply, by the competent authorities drawing up a special agreement. The relevant application must be lodged in the EEA state whose legislation is to be applied.

In Germany, the German Health Insurance Liaison Office - International Division (Deutsche Verbindungsstelle Krankenversicherung - Ausland (DVKA)) is the competent body for such special agreements.

Any special agreement is written down in an A 1 certificate.