A European contract, also known as an A1 certificate, is an official document that confirms a worker remains subject to their home country’s social security system while temporarily working in another EU country. This is in accordance with EU regulations that coordinate social security systems. The A1 certificate is issued by the competent authority in the worker’s home country.

Features of an A1 Certificate:
Confirmation of Social Security: The certificate confirms that the worker continues to contribute to and benefit from the social security system of their home country, thereby avoiding double contributions in the host country.

Temporary Posting: It is intended for workers who are temporarily posted to another EU country, typically for up to 24 months.

Employer Responsibility: The employer must apply for the certificate before the worker departs for the host country.

Exemption from Host Country Contributions: The A1 certificate ensures that the worker and employer do not have to pay social security contributions in the host country, thus preventing administrative burdens and double payment.

Benefits of an A1 Certificate:
Simplified Administration: Workers and employers do not need to comply with the social security requirements of multiple countries.

Cost Efficiency: Avoids double contributions to social security systems.

Clarity and Certainty: Provides clarity on which social security system applies during the posting.

Application Process:

Who Applies?: The employer or the self-employed individual applies for the certificate from the competent authority in their home country.

Where?: The competent authority varies by country. In the Netherlands, for example, it is the Sociale Verzekeringsbank (SVB).

The A1 certificate is a crucial tool for companies and workers operating in multiple EU countries, as it helps manage social security obligations and minimizes administrative complications.