Employees are insured in their country of work unless they work more than 25% of their time in their country of residence.
Framework agreement
In view of the increase in teleworking (also known as working from home), a framework agreement has been concluded within the European Union and signed by a large proportion of member states. Employees who telework more than 25% but less than 50% can apply to remain insured in their country of work.
This request must be submitted in the Netherlands to the Social Insurance Bank (SVB).The SVB then issues a so-called A1 declaration (valid for 3 years and renewable). Employees who work more than 25% at home and do not have such a declaration are insured in their country of residence in accordance with European allocation rules.
For employees who entered service before 1 July 2024, a request submitted to the SVB before 1 July 2024 works back a maximum of 1 year. In respect of employees who enter service after 1 July 2024, the request will work back a maximum of 3 months from submission to the SVB.
Which employees?
The request for application of the framework agreement may be submitted to the SVB by employees who:
- living outside the Netherlands;
- work only for Netherlands-based employers;
- between 25% and 50% of their time working at home.
Reliance on the framework agreement may also be in the employer's interest. If the employee is insured in the country of residence, obviously contributions must also be paid in the country of residence. This may lead to obligations of the employer in the employee's country of residence.