Working as a civil servant abroad transfers social security to another country
Working in two or several EU Member States as a civil servant and as an employee or a self-employed person means that the social security of the person working abroad is transferred to the country where the work as a civil servant is done. This also applies to situations in which the person works remotely in Finland as a civil servant for a foreign employer.
The work is insured in only one country at a time even if the person has employers and employment relationships in several countries. Many factors may affect which country’s social security legislation applies to the person, that is, to which country the employer is to pay the insurance contributions and from which country the person will receive social security benefits. What matters is whether the person is working as an employee, a self-employed person or as a civil servant.
Employment relationship determines the country of insurance
If a person is a civil servant in one country and an employee in another, the insurance contributions for both employment relationships are to be paid to the country in which the person works as a civil servant under that country’s social security legislation.
Previously this has applied only to situations in which the work as a civil servant has been carried out physically in the country whose civil servant the person is.
“The praxis of insurance was amended as of 1 April 2022. Now all insurance of a person working as a civil servant is transferred to the country where the person is a civil servant, also when the work is done remotely in Finland for a foreign employer. Whether the position as a civil servant is for a short period of time or part time makes no difference”, says unit head Noora Allenius.
Both employer and employee have liabilities
An employee working abroad must remember to inform their Finnish employer of any work done abroad, regardless of whether the work is done as an employee or a civil servant. The employer is always responsible for paying the insurance contributions of the employee to the correct country. That is why the employer must be aware of all employment relationships (as an employee or a civil servant) in Finland and abroad.
“We have observed that people working for a university or in health care often work simultaneously or regularly in two or several countries. Often in these cases work done in Finland is work done in an employment relationship and the equivalent work done abroad is done as a civil servant,” Allenius explains.
In these branches the employer must regularly remind its employees to report well ahead in time of any work abroad as a civil servant that they aim to take up in addition to the work they do in Finland, even if the work done abroad is small-scale and carried out, for example, during holidays.
Must apply for an A1 certificate
Working in EU countries requires an A1 certificate. The certificate attests which country’s social security legislation applies to the work and to which country employers are to pay the insurance contributions.
“As a rule, the employer applies for the A1 certificate. A person with several employers may also apply for the certificate themselves. In Finland, the application is always sent to the Finnish Centre for Pensions, which issues a decision on the application or transfers the A1 application to another country.
Examples of working in several countries as a civil servant and as an employee
A person resides in Finland and works in Finland for a Finnish company in the health care industry. The work is done in an employment relationship. During holidays, the person does gigs in Norway. The work in Norway is done as a civil servant.
All work, also that done in Finland, must be insured in the country in which the person works as a civil servant. The Finnish employer must pay the statutory social insurance contributions to Norway. That means that the person’s social security and pension provision transfers to Norway. An application for an A1 certificate must be sent to the Finnish Centre for Pensions.
A person resides in Finland and works in Finland for a Finnish university and as a civil servant for a German university. The person does remote work for the German university from Finland.
All work, also that done for the Finnish university, must be insured in the country in which the person works as a civil servant. In this case, the Finnish employer must pay the statutory social insurance contributions to Germany. That means that the person’s social security and pension provision transfer to Germany. An application for an A1 certificate must be sent to the Finnish Centre for Pensions.
Work done simultaneously in several countries as an official and as an employee
- Remind your employee to tell you if they plan to work for a foreign employer.
- Find out which country’s social security legislation the employee is covered by in this new situation.
- Apply for or ask your employee to apply for an A1 certificate from the Finnish Centre for Pensions.
- Familiarise yourself with the legislation of the country whose social security legislation applies to your employee’s work and pay the insurance contributions as required by that legislation.
- Contact the Customer Service of the Finnish Centre for Pensions if you have any questions!
Work done simultaneously in several countries as a civil servant and as an employee
- Notify your employer if you are considering working abroad alongside your employment in Finland.
- Apply for an A1 certificate (on your own or together with your employer) from the Finnish Centre for Pensions.
- If your circumstances change, notify the party that issued your A1 certificate and your employers.
- When you claim your pension down the road, remember to include data on your work abroad on the claim form.
- Contact the Customer Service of the Finnish Centre for Pensions if you have any questions!
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