Social Security Contributions – Working in the EU

Self-Assessment for cross border Employers and Self-Employed Persons in the EU

The EU social security coordination rules encompass a set of regulations that allow social security institutions to determine the applicable legislation for individuals in a cross-border situation involving two or more countries. Once determined, the country responsible for social security coverage issues a Portable Document A1, certifying its competence in this regard.

Our aim is to simplify the administrative workload for employers and self-employed persons to encourage them to fulfil their social security obligations. For the purpose of using this Self-Assessment Tool, an ‘employed person’ refers to a person who has not yet passed the 65^th birthday and who is engaged in insurable employment. On the other hand, a ‘self-employed person’ refers to a person who has not yet passed the 65^th birthday and is working in one’s own business or professional practice for the purpose of earning a profit.

This Self-Assessment Tool helps individuals to find out whether as an employer or a self-employed person, they are obliged to pay social security contributions in Malta for their employees, or for themselves, when working in a cross-border situation between two (or more) EU countries.

The Self-Assessment Tool asks a number of questions to assess one’s cross-border situation individually. Upon the provision of the required information, individuals will be provided with indicative guidelines on their social security obligations, and whether these can be payable in Malta.

The use of the Self-Assessment Tool is recommended for employers or as self-employed persons that:

• Will be sending an employee to work temporarily in another EU country on one’s behalf for a maximum period of twenty-four (24) months, which is referred to as a ‘posting’.
• Are normally self-employed in an EU country and will go to pursue a similar activity in another country for a maximum period of twenty-four (24) months.
• Are employing a worker or working as a self-employed on board a vessel flying the flag of Malta.
• Are working as a self-employed person on board a vessel flying the flag of Malta.
• are employing personnel who perform an activity as flight or cabin crew of an aircraft whose designated home base is in Malta.
• Are employing a worker who is normally employed in more than one EU country at the same time or in alternation.
• Are normally self-employed in more than one EU country at the same time or in alternation.

It is important to note that the provided guidelines are based solely on the information provided. In complex work situations, it is advisable to contact the International Relations Unit through our Contact Us page for further assistance.

The Self-Assessment Tool is available to employers and self-employed persons operating in a cross-border capacity within the European Union. Those employing workers or working as self-employed persons across different EU countries, are eligible to use our self-assessment tool. It provides valuable information on social security contributions and helps ensure compliance with relevant regulations. Whether one is a small business owner, a multinational corporation, or a self-employed professional, this tool assists in understanding and meeting one’s social security obligations in the EU. The Self-Assessment Tool is designed for use specifically in the following countries/regions to generate accurate results:

• the European Union (EU)
• the European Economic Area (EEA)
• Switzerland
• United Kingdom

The Self-Assessment Tool can be accessed by clicking here.

Source: Information Management Unit, June 2023