If you work in different EU Member States at the same time, social security contributions must be paid in one country only. If you perform short-term work in different EU Member States, you need to find out where social security contributions must be paid. If social security contributions for work performed in (an)other Member State(s) must be paid in Latvia, the worker must hold the A1 certificate issued by the VSAA stating that they are subject to Latvian social security regulations and that social security contributions for work in (an)other Member State(s) are to be paid in Latvia.
In which country are you insured for social security purposes?
The general rule is that social security contributions must be paid in the country where the person pursues an activity as an employed or self-employed person. However, there are exceptions to this rule (e.g. with regard to posting workers, working in numerous countries, and exceptions with regard to various professions, such as mariners, officials, members of flight crews, etc.).
In order to prevent social security schemes and complications from overlapping when registering with social security schemes in different Member States, persons moving within the European Union must be insured for social security purposes in one Member State.
A person employed or self-employed on a sea-going vessel flying the flag of a Member State must pay social security contributions in that Member State. If this person receives remuneration from an undertaking whose legal address or place of business in is another Member State, social security contributions must be paid in that country if the person permanently resides there. The undertaking or the person paying the remuneration is considered the employer.
A worker who is posted by an employer to another Member State to perform work on behalf of the employer that normally carries out its activities there will continue to be subject to the legislation of the first Member State, provided that the anticipated duration of such work does not exceed 24 months and that they are not sent to replace another posted person (Article 12(1) of Regulation (EC) No 883/2004).
Rules on posting a worker to another EU Member State
Pursuing a short-term activity as a self-employed person in another EU Member State
Pursuant to Article 12(2) of Regulation (EC) No 883/2004, a self-employed person who normally pursues an activity in Latvia and goes to pursue a similar activity in another Member State will continue to be subject to social security insurance in Latvia, provided that the anticipated duration of this activity does not exceed 24 months.
Conditions for applying Article 12(2) of Regulation (EC) No 883/2004 to self-employed persons:
- as a rule, a self-employed person must pursue a substantial part of their activity in Latvia as a self-employed person, and this activity must be pursued in Latvia for at least 2 months before going to work in another Member State;
- while performing work in another Member State, the self-employed person must continue to fulfil the conditions in Latvia allowing them to continue their activity after their return (e.g. maintaining an office or any other infrastructure necessary for pursuing a professional activity, paying social security contributions, paying taxes, retaining a VAT number, registering with a professional association or chamber of commerce, etc.).
Pursuing an activity in two or more EU Member States simultaneously or alternately
If a person works in several Member States, it is necessary to determine the Member State with which the worker has the closest ties. These provisions are intended for representatives of various professions, such as airline staff, international haulage drivers, international couriers, experts in various fields and other professionals, including stage artists, etc. They apply to both employees and self-employed persons.
Contract staff of the European Communities (contract workers)
Contract staff of the European Communities may opt to be subject to the legislation:
- of the Member State in which they are employed;
- to which they were last subject; or
- of their Member State of citizenship.
Necessary documents – the A1 certificate
An employee, self-employed person, official or contract worker of the European Communities pursuing an activity in the EU and subject to provisions of Articles 12 to 16 of Regulation (EC) No 883/2004 must obtain an A1 certificate. The A1 certificate states that the person is registered in Latvia as a person subject to social security insurance and that social security contributions during the person’s employment in another Member State must continue to be paid in Latvia. The certificate must be presented to the competent authority in the country of employment upon request.
In order to be issued the A1 certificate by the VSAA:
- when an undertaking posts a worker, the employer must complete the application;
- when a self-employed person pursues a short-term activity in one or more other EU Member States, a self-employed person must complete the application;
- when an employee pursues an activity in numerous EU Member States, the employee or the employer must complete the application.
It is advisable that applications be submitted at least 4 weeks before commencing activity in another country.
If the expedited issue of the A1 certificate is required, please specify this in the application.
Applying exceptions pursuant to Article 16 of Regulation (EC) No 883/2004
In accordance with the legislation, the duration of posting may not exceed 24 months. However, competent authorities of two or more Member States may agree on exceptions to Articles 11 to 15 of Regulation (EC) No 883/2004 in the interest of certain persons. Upon agreement, the person becomes subject to the legislation of a Member State, even though provisions of Regulation (EC) No 883/2004 designate another Member State as the competent country. The agreement must be based on the interests and benefits of workers.
The competent authorities in EU Member States, including the VSAA, evaluate and monitor situations covered by Article 12 of Regulation (EC) No 883/2004, apply the criteria and assess whether:
- the employer conducts business operations in the respective EU Member State;
- there is a direct link between the employer and the worker.
Competent authorities of EU Member States can carry out checks throughout the entire period of the worker’s posting in order to verify that:
- the period of posting has not expired;
- mandatory social security contributions have been paid;
- the direct link between the employer and the worker is maintained;
- and other checks.
Important: There are rules laying down the responsibilities of the employer in another Member State (provision of information on posted workers to competent authorities).Each Member State has established a procedure for the provision of information on posted workers. To find out the rules applicable to the posting of workers, employers must contact communication and/or controlling authorities in the Member State where the workers are posted. For example, in Germany, Austria and Finland, information on posted workers must be provided electronically in a designated online tool. Fines apply in the event of failure to comply with the registration/notification requirements in respect of posted workers.
See more information on the homepage of the State Labour Inspectorate:
VSAA izmanto Eiropas Darba iestādes atbalstu