The A1 form is a portable document that is released applying the law: Regulations no. 883/2204 regarding the coordination of social security systems and Regulations no. 987/2009 of the European Parliament and of the Council from 16th September 2009, regulations applied to the relation between any state member of the European Union and the European Economic Space.
General information
- According to the EU Regulations 883/2004, Article 11.1, a person shall be insured for Social Insurance Contributions (SIC) in a single Member State only;
- Generally, the employment is insurable in the State where it takes place. However, if the employed/self-employed person is seconded from an EU Member State to another EU/EEA state, then the employer/self-employed person is entitled to apply for the A1 Form;
- The A1 Form is a document issued by the National House of Public Pensions, attesting that its holder and family members remain affiliated to the social security system of the country of origin (Romania) for a period of maximum 2 years, if the holder performs work activities on the territory of another EU/EEA Member State;
- The A1 Form will exempt the seconded worker and the employer from paying Social Contributions in the European Host country (where the seconded worker was sent) and authorizes its payment to the Home country (where the seconded worker was sent from);
- An A1 Form indicates in which Member State should be paid the social insurance contributions and confirms that the seconded worker has no obligation to pay social contributions in another Member State for the duration stated on the certificate.
Guidelines and queries
- Eligibility criteria
Employer – Eligibility criteria:
According to the EU regulations in force, the EU citizens, local employed in Romania, performing work activities in other EU states as seconded workers, can remain affiliated to the social security system of Romania, without paying social contribution in the state of residence, only if they hold an A1 Form, valid for the entire period of the secondment. The eligibility criteria that the Romanian Employer has to fulfill, according to the EU regulations and directives, is the following:
- The employer must perform substantial activity in Romania for at least 4 months and 25% of the turnover must come from local contract, activities performed in Romania;
- The Employer must prove that its obligations to the state budget were paid up to date;
- The maximum number of seconded individuals should not exceed 50% from the total number of employees.
EU citizens – Eligibility criteria.
The eligibility criteria that the EU citizens should fulfill in order to hold an A1 Form is the following:
- The seconded worker needs to be employed to a Romanian company with minimum 1 month before the start date of the secondment, based on the employment agreement concluded with its employer;
- The seconded worker needs to be affiliated to the National Health System from Romania with at least one month before the secondment starts;
- The employee must not be replacing another seconded worker whose period of secondment has ended;
- Special conditions
- The secondment must be of a temporary nature (generally for not more than 24 months);
- The work being undertaken by the seconded worker must be carried out for the Romanian employer sending the employee abroad. Throughout the period of secondment, a direct relationship must be maintained between the seconded worker and the Romanian employer;
- The secondment can occur to a single Member State only. If the seconded worker intends to work on a different project in another State, a new A1 Form, subject to the usual conditions, must be applied for;
- The employment relationship between the seconded worker and the Romanian employer should be maintained during the entire period the employee is seconded (the labor agreement concluded with the Romanian company is kept, the salary and all related charges are paid by the employer and not by the company to which the employer is seconded;
- The authorization of a new period of secondment can be approved only after 2 months from the date of termination of the maximum previous period of secondment;
- The salary and the employment conditions need to be according with the legislation in force of the EU receiving member state.
- Types
- EU secondment for a period of maximum 24 calendar months;
- Pluri-activity (work activities performed simultaneous in two or more than two Member States).
- Time frame
The legal period to obtain the A1 Form is 30 business days since the documents were submitted to the National House of Public Pensions in Bucharest.
Contact an Advisor
If you have any questions regarding this topic and how it might have an impact on your business, please contact the Mirus Consultant with whom you regularly work, or: