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Insurance obligation with van oers international

Insurance obligation

Anyone who lives and works in the Netherlands is required to be insured for certain forms of social security. However, what happens if you work abroad?

Insurance obligation with van oers international

Insurance in the country you work

In cross-border employment situations within Europe, a series of Regulations (as they are termed) govern the country where the employee insured and pays social security contributions. The general principle is that employees are insured in the country where they work. Employees on a temporary foreign posting often remain insured in their country of residence during the initial years. Additional rules for determining the relevant jurisdiction apply if the employee works in multiple countries at the same time. In situations involving employment outside Europe, social security matters depend on the treaties between the countries and on national regulations.

Insurance obligation with van oers international

Withholding obligation for the employer, remittance by the employee

Another matter, besides determining what social security contributions need to be paid, is how to pay them: is the employer obliged to withhold and remit the contributions, or does the employee do this directly? Where does the responsibility lie, and what is the risk if the contributions are not paid correctly?

How much to pay

In the Netherlands, contributions are only levied on the employee’s income up to a certain maximum. Other countries, however, do not always apply this ceiling. In addition, the rates sometimes differ significantly from one country to the next. An obligation to pay social security contributions in another country might therefore have a significant impact on the financial situation, for both the employer and the employer. Knowing what consequences to expect might give you an opportunity to find a solution.

Insurance obligation with van oers international

Benefits: not automatically linked to remittance of contributions

Another factor that increases the complexity of the social security regime is that remitting contributions in one country does not always entitle an employee to that country’s benefits. For example, in a European context the unemployment benefits will generally be paid by the country of residence; this is not necessarily the same country as where the employee paid the contributions. In some situations it is possible to claim benefits in multiple countries. Each country has its own rules for the amounts, the duration and the conditions entitling the recipient to benefits. It is important for you not only to understand your obligations, but also to be aware of your rights.

Insurance obligation with van oers international

Knowing what to expect: vital for both employer and employee

Make sure that you do not enter into your international adventure until you are properly prepared: otherwise your dream job might end in a nightmare. Knowing what to expect is vital. You need to know what your obligations and your rights are. Map out your income and expenses, and the gross and net amounts. Van Oers International and our network can help you with this.

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References

Cooperation with Van Oers International

gijs vernoij
Gijs Vernoij | Tax director
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