Social security cover when living in Denmark but working abroad
The Danish Social Security System consists of a broad variety of services and benefits that provide economic security to both workers and private citizens.
To name a few, the Danish system provides health insurance, family benefits, pension, unemployment benefits, daily sick pay, ATP (Danish labour market supplementary pension) and industrial injury insurance.
The purpose of this article is to briefly describe how to retain the benefits of the Danish Social Security System while working abroad.
The A1 certificate
If a worker living in Denmark wishes to stay covered by the Danish Social Security whilst working in another EU-country, the UK, Switzerland or the EEA-states, the worker or his employer must apply for the A1 certificate that documents the payment of social contributions in Denmark.
In order to obtain the certificate, the worker must disclose key personal information (CPR number, Nem-ID and details about the employment). The certificate provides evidence from the Danish Authorities, that the worker has paid his dues in Denmark and therefore should not be subject to payments in the working country or fines for not paying at all.
If the deployment lasts longer than 24 months, an extension for one extra year of the certificate may be granted upon request, except for deployments to the UK.
Working in more than one country abroad
Due to the nature of their employment e.g., travelling salesmen or workers in the transportation sectors, some workers will be working in more than one EU-country, Switzerland, UK or the EEA countries. In that case, the coverage by the Danish Social Security System is dependent on a number of factors including the percentage of time the worker is working in Denmark and whether the employer is a Danish or a foreign company.
If 25 % of the work is performed in Denmark and the rest of the work in other countries, the worker is covered by the Danish Social Security System regardless of the nationality of the employer.
If, on the other hand, less than 25 % of the work is performed in Denmark, coverage according to Danish Social Security regulations is conditioned upon working for one or several Danish employers or working for more than two employers where at least two of them are domiciled in other EU or EEA countries (not including Denmark).
Self-employed workers
This group of people must also request for an A1 certificate in order to stay covered by Danish Social Security. The requirements here are several, including documentation for running a business in Denmark for some time, working in the same industry during your time abroad and the maintenance of a business operation upon the return to Denmark.
Further, the posting abroad must be limited in time according to your expectations.
Here, again, special rules will apply if the self-employed work is performed in more than two EU/EEA-countries, Switzerland or the UK whilst stile living in Denmark.
If you have any questions regarding how to maintain coverage of Danish Social Security when living in Denmark but working abroad, then please contact our experts.