A brief step-by-step guide on how to manage social security for international employees.

1. STEP 1 STEP 2 STEP 3
STEP 4 STEP 5
Where will your
employee work?
How are Danish schemes affected
during and after the assignment?
Posted employee application
Sending your employee to a
non-EU/EEA or non-treaty country
Sending your employee
to a treaty country
Sending your
employee to an
EU/EEA country
Applying the
correct provision
Filing the application
STEP 6
Considerations
• The posting provision must be
considered before the multi-state rules.
• Temporary/ad hoc work abroad = posting situation.
• Permanent work pattern = multi-state situation.
• What does the employment contract say?
*) Treaty countries (Denmark, April 2017): Bosnian-Herzegovina, Canada, Chile, Philippines,
France, India, Israel, Yugoslavia (state succession), China, Croatia, Macedonia (FYROM),
Morocco, Montenegro, New Zealand, Nordic countries, Pakistan, Quebec, Switzerland,
Serbia, Great Britain, South Korea, Turkey, Germany, USA, Austria and Australia.
**) Including Switzerland.
Also consider
Other sickness/healthcare benefits, maternity/paternity benefits, other old-age benefits,
occupational diseases, unemployment benefits, pre-retirement benefits, family benefits.
Fallback solution
When a person or a scheme/benefit
is not governed by a treaty - see step 2.
Check if accompanying family
members are governed by the treaty.
Family coverage
1. Are the posting
conditions met?
(see backside
of this placemat)
2. Is the employee
working “normally”
in two or more
EU/EEA countries?
(see backside
of this placemat)
3. Apply
the country
of work
principle
Apply the posting
provision
Apply the
multi-state rules
No
Yes Yes
No
Multi-state
or other
special
rules
Country
of work
Posting
Multi-state employee A1 application
Non-EU/EEA/
non-treaty country
Step 2
Step 5
Step 6
A
Step 3
Step 5
Step 6
B
Treaty
country*
Step 4
Step 5
Step 6
C
EU/EEA**-
country
Check if the treaty
applies to certain
nationals only. If so,
posted employees
may be included,
nonetheless.
Who?
Check for how
long an assignee
keeps home social
security. The
typical Danish
limit is 2-3 years.
How
long?
Check if the treaty
applies to pensions
only or a broader scope
of social security, e. g.
sickness, unemployment,
accidents at work.
What?
Sickness
cash benefits
Check if the
Danish sickness
cash benefits/
remuneration
is affected.
Old-age
pensions
Check if ATP
contributions
must/cannot
be maintained.
Accidents
at work
Check if the
mandatory
Danish insurance
must/cannot be
maintained.
When?
When?
Preferably before
the work abroad
is undertaken.
Preferably before
the work is
undertaken.
Where?
Where?
The authority in
the home country.
In the country
where the
employee lives.
Who?
Who?
Filed by the
employer.
Filed by the employee
(or the employer on
behalf of the employee).
What?
Rights and
obligations
concerning
social security
(opposed to
tax and social
assistance).
Where?
Work
performed
within or
outside the
EU/EEA.
Who?
EU/EEA
citizens.
Which?
EU/EEA
Crossborder
element.

2. Posted employee
within the EU/EEA
Multi-state employee within the EU/EEA
Links to practical
resources (April 2017)
Stay updated on
social security
Further PwC assistance
Assignment does not exceed 24 months
(alternatively 36 months)
Covered by Danish social security before assignment
Direct relationship between employee
and home country employer
Not sent to replace another posted person
1.
2.
3.
4.
Employee conditions
5 conditions for maintaining home social security:
Partial posting
5. Sending entity must have a substantial activity
in home country
Employer condition
Regulation 883/2004
(consolidated 01.01.2014)
Regulation 987/2009
(consolidated 01.01.2015)
European Practical Guide
(December 2013)
Danish social security
treaties with guidelines
Dialog – Danish PwC newsletter
PwC Global Social
Security Newsletter
Get the latest social security
updates on LinkedIn
#PwCsocialsecurity
Have PwC support your in-house
social security compliance function
– learn more here
Jonna Skovdal
Director
E: jsv@pwc.dk
T: +45 3945 3322Business travels during assignments
Ad hoc business travels
Denmark
Denmark Germany
100%
Denmark Sweden
40% 60%
Adam Rewucha
Manager
E: adr@pwc.dk
T +45 3945 9410
Christian Hviid Madsen
Senior Consultant
E: cxm@pwc.dk
T: +45 3945 3946
Normally working
Is the employee working in two or more EU/EEA
countries simultaneously or in alternation?
What does the employment contract(s) say?
When may ad hoc business travels be
considered a “normal” work pattern?
Residence
The place where a person habitually resides.
Notice may be given to the tax treaty residence.
Formal registrations do not determine the
matter.
Employer(s)
Is the formal or the actual/economic employer
considered the employer for social security
purposes?
Activities
‘Activity as an employed person’ and ‘activity
as a self-employed person’ means any activity
or equivalent situation treated as such by the
social security legislation of the Member State
in which such activity or equivalent situation
exists. Remember to consider holidays,
sickness days, payed leave etc.
Posting vs. multi-state
If the multi-state activities are performed ad
hoc or temporary in each country, the posting
provision may apply.
Is the person normally
working as an employed
person in two or more
EU/EEA countries?
Are 25% or more of the employ-
ment activities performed
in the country of residence?
How many employers?
Further analysis required
Consider the country
of work principle
Are the posting
conditions met?
Covered
by social
security
in the
employer’s
residence
country
Covered
by social
security
in the
residence
country
No
Yes
One
Yes
No Yes No
Two or more
2 years
2 years
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy
or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting,
or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2017 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.