Social security

It is important to be aware that DTU may incur expenses if an employee is covered by a foreign social security scheme. An employee may, for example, be covered by a foreign social security scheme if the employee in question has two employers simultaneously in two different countries. An employee may also be covered by a foreign social security scheme if the employee has a permanent place of employment abroad. It is therefore important that Corporate HR is involved at the right time and prior to an employee (current or future) being given permission to work abroad and/or to have secondary employment abroad.

Definition of social security:

Within the EU/EEA countries, social security covers:

Health insurance, sickness benefits, maternity/paternity benefits, family benefits, occupational injury benefits, unemployment benefits, early retirement benefits, pension, etc.

Some countries’ social security schemes are financed through taxes (for example in Denmark). In other countries, they are financed via contributions paid by employers and employees. This is the case in Germany, Sweden, and the Netherlands, among other countries. In some countries, the social security contribution constitutes 25% of the employee’s salary.

If an employee is covered by a social security scheme in another country, this may mean that DTU must make payments to the foreign system (for example 25% of the employee’s salary). It may also mean that DTU will not receive a reimbursement in case of long-term illness or maternity/paternity/parental leave.

DTU cannot make payments to foreign social security schemes in all countries. In some cases, additional expenditure may therefore be incurred for external assistance. Always contact Corporate HR before granting permission for an employee to work from his or her home country/abroad. 

EU/EEA:

A person can only be covered by the social security scheme of one country at the time. This means that it may be necessary to determine which country’s social security rules are applicable when an employee works for DTU abroad and/or has secondary employment in another country.

In the EU, common rules have been adopted on where an employee is covered by a social security scheme. Below are links to more detailed information about this. For example, the links provide answers to questions about which country’s social security legislation applies to employees who:

• are posted
• work permanently abroad
• work for DTU in Denmark, but have their place of residence abroad and have foreign secondary employment, etc.

Examples
Rule description - upper levels
Rule description - lower levels
Flow charts

Outside the EU/EEA:

Social security in countries outside the EU/EEA mainly only covers labour market supplementary pension and social pension—and this only in so-called convention countries with which Denmark has an agreement (for example the United States and Canada). Therefore, if the employee works in a country outside the EU/EEA, it is important to be aware that it may be necessary for the employee to take out private insurance.

A1 certificate:
If you are an employee and are asked to present an A1 certificate and you are not in possession of such a certificate, it can be obtained via Udbetaling Danmark—Danish Public Benefits Administration: Apply for social security cover when working abroad – as employee | Virk . Remember to send a copy to Corporate HR (your HR consultant).

If you have any questions about the above, you are always welcome to contact Corporate HR.