Slika družine

Working or pursuing an activity in several Member States – determining the insurance legislation under EU Regulations

Title II of Regulation (EC) No 883/2004 (the basic Regulation) provides that if a person pursues work or an activity in two or more EU Member States at the same time, they are covered by compulsory social insurance schemes in a single EU Member State only (so-called "concurrent employment"). Coordination rules are laid down to determine the legislation of the EU Member State applicable to that person, which means that all persons liable to pay social insurance contributions are required to register for compulsory social insurance schemes and pay contributions on all income from work or an activity only in the country whose legislation applies under these rules. The Regulation (EC) No 987/2009 (the implementing Regulation) lays down the rules and procedures for the implementation of the rules of the basic Regulation.

These Regulations have been in force and directly applicable since 1 May 2010, with guidelines for uniform application of the legislation of the Republic of Slovenia (the Guidelines) explaining the relationship between the provisions of the Regulations and the legislation of the Republic of Slovenia.

Below is an explanation of how the basic Regulation (EC) No 883/2004 and the implementing Regulation (EC) No 987/2009 are applied, in conjunction with the legislation of the Republic of Slovenia (hereinafter referred to as “RS”), for the purposes of compulsory social insurance coverage when the legislation of the RS applies.

Compulsory social insurance coverage of employed persons in the Republic of Slovenia 

 
An employed person is covered by compulsory social insurance schemes in the Republic of Slovenia if they are employed in another EU Member State, under the rules which apply to coverage by social insurance based on an employment relationship in the territory of the Republic of Slovenia, namely:
  • the pension and disability insurance scheme,
  • health insurance scheme,
  • parental care insurance scheme,
  • unemployment insurance scheme. 
Persons liable for registration into and deregistration from an insurance scheme and payment of contributions
 
Article 21 of the Implementing Regulation sets out the obligations of an employer whose registered office or place of business is outside the competent Member State (an employer who has his registered office or place of business outside the competent Member State fulfils all the obligations laid down by the legislation applicable to his employees, notably the obligation to pay the contributions provided for by that legislation, as if he had his registered office or place of business in the competent Member State), but Slovenian legislation defines an insured person as a person liable to pay contributions because in these cases the employer is not the tax payer and cannot be liable to register for insurance and pay contributions.
 
Under Article 21(2) of the Implementing Regulation, an employer, who does not have an establishment in the Member State whose legislation applies, and the employee may agree that the employee fulfils the employer's contribution obligations on the employer's behalf without this affecting the employer's primary obligations. The employer informs the competent institution of that Member State of such an arrangement.
 
The current Slovenian social security legislation also makes insured persons liable for all compulsory contributions when they are employed by an employer not established in the Republic of Slovenia, which means that the general rule is that they pay contributions in a way that is considered an exception under the Implementing Regulation.
 
Paying social security contributions and taxes as well as reporting payroll information for insured employees
 
Persons employed by an employer in another EU country, pays all their own social security contributions (the insured person’s and the employer’s contributions into all compulsory social insurance schemes). They must submit to the tax authority their tax return for the salaries and other benefits received in the previous month no later than the 15th  of the month for the preceding month, in accordance with the legislation in force, using the form “Social security contribution calculation for persons employed by foreign employers” (on the Social security contributions website), and pay their social security contributions no later than the 20th of the month for the preceding month.
 
For these persons, the contributions are paid from the salary they receive from their employer in another Member State. Any other income from this employment is treated in accordance with regulations in the Republic of Slovenia which govern the payment of social security contributions and taxes.
 
As a rule, an insured person pays contributions themselves into the prescribed payment sub-accounts using a reference containing their tax number. If the insured person provides all payment details to their foreign employer, the employer may make the payments, but according to the reference, the payment received is recorded in the same way as if it were made by the insured person themselves.
 
In accordance with the regulations on the Register of insured persons and beneficiaries of the pension and disability insurance scheme, the Finance Administration of the Republic of Slovenia provides information on salaries, salary compensations and contributions paid for these persons for the previous calendar year which is used to calculate the pension bases and grant pension and disability insurance benefits.
 
Proof of employment in another EU Member State
 
A person provides proof of employment with an employer in another Member State by submitting an employment contract. When deregistering from the insurance scheme, they submit the employer’s notice of termination of employment contract to prove that their employment ended.
 

Coverage of persons pursuing a self-employment activity by the compulsory social insurance schemes

 
Persons who are resident and pursue a self-employment activity in the Republic of Slovenia and who are at the same time self-employed in another EU Member State (persons referred to in Article 13(2)(a) of the Regulation (EC) No 883/2004
 
Persons residing in the Republic of Slovenia who pursue a substantial part of their registered activity as a self-employed person in the Republic of Slovenia, are, under the regulations of the Republic of Slovenia, already covered by:
  • the pension and disability insurance scheme,
  • the health insurance scheme,
  • the parental care insurance scheme,
  • the unemployment insurance scheme.
 
The registration of a self-employment activity in another Member State does not affect the obligation to join the social insurance schemes in the Republic of Slovenia, as the insurance coverage is established on the basis of full-time self-employment In the Republic of Slovenia (registered self-employment activity) under the provisions of the Pension and Disability Insurance Act (ZPIZ-2). As the contributions for an activity registered in the Republic of Slovenia also cover injury at work and occupational disease sustained during a self-employment activity in another Member State, no separate insurance against these risks is provided.
The following rule applies to health insurance: If a person is covered by health insurance as a self-employed person in the Republic of Slovenia and has a registered full-time activity as a self-employed person abroad, the compulsory health insurance contributions are paid from the insurance base set for persons with pension and disability insurance coverage for self-employed persons. For a person pursuing several different activities, the income from all activities registered by this person is taken into account for the calculation of the insurance base, in accordance with the Pension and Disability Insurance Act and the Income Tax Act. As all income is aggregated to form a single insurance base, contributions to compulsory health insurance when persons carry out several activities are also calculated and paid from the base thus determined, at the rates and from the base set for self-employed persons. In this case, no separate insurance coverage against injury at work and occupational disease is provided.
 
Persons who are not resident in the Republic of Slovenia and are at the same time pursuing a self-employment activity in the Republic of Slovenia and another EU Member State (persons referred to in Article 13(2)(b) of the Regulation (EC) No 883/2004)
 
For a person who is not residing in the Republic of Slovenia, but has the centre of interest of their activity here, compulsory insurance coverage is also provided on the basis of an activity registered in the Republic of Slovenia; the submission of the proof of registration of a self-employment activity serves primarily to determine the applicable legislation. The insurance relationship is established on the basis of the activity registered in the Republic of Slovenia, irrespective of the place of residence.
 
If by deletion from the relevant register an activity in the Republic of Slovenia ends, but the person still pursues a self-employment activity registered in another Member State, the applicable legislation is determined anew, and if the legislation of the Republic of Slovenia no longer applies, the insurance coverage ends. The Portable Document A1 is cancelled  and the insurance providers in the countries where an activity is still registered are informed.
 
Proof of a self-employment activity in another EU Member State
 
To prove a self-employment activity and the status as a managing partner, an extract from a foreign business or court register is submitted.
 
Payment of social security contributions by insured persons pursuing a self-employment activity 
 
The contributions are calculated and paid by the insured persons themselves, who are also liable for their own contributions under the current legislation of the Republic of Slovenia.
 
The insurance base is determined in line with the provisions of the Pension and Disability Insurance Act in the same way as for persons with a gainful or professional self-employment activity registered in the Republic of Slovenia. The insurance base is the profit from the income from an activity registered in the Republic of Slovenia, and from an activity as a self-employed person in another Member State, based on information from the tax return for the income from an activity which the insured person - resident in the RS – submits to the tax authority. If the self-employment activity is registered in more than one Member State, the sum of the income from the self-employment activities in all the Member States on which the tax is based, is taken into account to calculate the taxable amount.
 
Contributions for self-employed insured persons are paid by the insured person (or, in practice, most often their authorized person, e.g. an accounting service) by submitting a contribution calculation to the tax authority (Finance Administration of the Republic of Slovenia) and, for the purposes of calculating the prepayment of the income tax, they separately declare their income on the prescribed income tax return form. On the basis of the submitted tax return for the prepayment of income tax, The Finance Administration calculates the prepayment of the income tax and issues a decision. The insured person pays the contributions themselves into the prescribed payment sub-accounts quoting a reference containing their tax number.
 
Payment of contributions on the basis of a part-time up to full-time self-employment
 
Contributions are calculated and paid by the insured persons themselves. Depending on the proportionate part of full-time insurance, the monthly insurance base is calculated accordingly in line with the current legislation of the Republic of Slovenia.
The insurance base is determined in the same way as for persons with a registered gainful or professional activity in the Republic of Slovenia under Article 145 of the Pension and Disability Insurance Act. The basis for determining the insurance base is the income from an activity as a self-employed person in another Member State, as stated on the income tax return submitted by the insured person - resident in the Republic of Slovenia - to the tax authority. If the activity as a self-employed person is registered in several Member States, the sum of the income from self-employment activities in all the Member States which formed the basis for taxation is taken into account to determine the insurance base.
 

Issuing a Portable Document A1 and the procedure for determining the applicable legislation

The legislation of a EU Member State which applies is determined by the Health Insurance Institute of Slovenia, which issues the A1 form. 
 
When a person works in two or more EU Member States for two or more employers, or is also self-employed and has a permanent residence in the Republic of Slovenia, the applicable legislation is determined by the insurance provider in the Republic of Slovenia, namely the Health Insurance Institute of Slovenia. The person initiates this procedure themselves.
 
A person submits an application for a Portable Document A1 to the Health Insurance Institute of Slovenia by sending to the e-mail address dolocitev.zakonodaje@zzzs.si a completed questionnaire in respect of the place, manner and scope of the employment, or self-employment, activity in another EU Member State and attaching supporting documents. These supporting documents are in particular: an employment contract, a contract for work or service, a letter of appointment to office, the extract from the register of a registered self-employment activity, or the status, of a managing partner, etc., and, where appropriate, other supporting documents relating to the place of work, the scope of the activity or service and the volume of income.
 
 

 

 

 

Pension and Disability Insurance Institute of Slovenia, Kolodvorska 15, Ljubljana
General conditions of use Data protection
Created by: MMstudio