A1 statements

At Crowe Peak, we recognize the complexity surrounding international employment. Ensuring proper insurance coverage and compliance with relevant regulations for your employees is vital. This is where A1 statements (also known as a certificates of coverage) play a pivotal role, applicable to both employees dispatched abroad and those arriving in the Netherlands from overseas. 

What is an A1 statement or certificate of coverage? 

An A1 certificate is documentation confirming the application of social security regulations for international employees within the EU. Outside the EU, a comparable document is commonly called the certificate of coverage. This certification affirms that an individual is subject to the social security laws of a specific country. 

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Why is it crucial for employers to utilize A1 statements? 

• Clarity and security for employees: A1 statements ensure your employees’ social security entitlements, granting them access to benefits and protections within the relevant country’s social security system. 
• Legal compliance: Employers are obligated to adhere to laws and regulations concerning social security for international employees. A1 statements are essential in meeting these legal requirements. 
• Avoiding double contributions: In certain instances, employees working abroad might be covered by both their home and host countries’ social security systems, resulting in dual contributions. A1 statements prevent this occurrence. 
• Mitigating legal risks: Securing A1 statements and ensuring compliance with appropriate social security regulations helps circumvent legal complications and fines stemming from non-compliance. 
• Streamlined operations: Efficiently managing social security for international employees aids in maintaining smooth business processes and minimizes unnecessary administrative burdens and expenses. 

Consideration of diverse regulations 

The social security circumstances for an employee in an international assignment significantly hinge on the specific situation and must be thoroughly assessed for each assignment. When an employee relocates to the Netherlands from abroad for work, the employee’s origin holds significant sway. We categorize countries into three groups: 

• EU, EEA, or Switzerland; 
• Treaty countries; and 
• Non-Treaty countries. 

The employee’s origin dictates the relevant social security regulations. This determination can decide whether they fall under the Dutch social security system or that of their home country. Other variables, such as the employee’s nationality and the purpose of their stay in the Netherlands, can also impact the applicable regulations. 

Tax advantage with the Dutch 30% ruling

Discover the tax benefits for your team with the 30% ruling. This scheme allows up to 30% of the gross salary of international employees to be tax-free. Want to know whether the 30% ruling can be applied to your employee(s)? Download the infographic for more information.

Our team is delighted to assist you! 

Do you have any queries or require assistance with the A1 certificate? Fill out the form below, and we will get in touch within one business day.