Social Insurance (PRSI) for Persons while Working Abroad


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INTRODUCTION

 This leaflet advises employers, employees and self-employed persons of the procedures to be undertaken before an employee or self-employed person is posted to work in another country for a temporary period of time.  A person may be posted to any country, however, different provisions apply to the European Economic Area (EEA), to countries outside the EEA and to countries with which Ireland has a social security agreement.

 

POSTINGS  TO  THE  EUROPEAN  ECONOMIC  AREA  (EEA)  UNDER  EU  REGULATION  1408/71  AND  883/04(from 1st May 2010)

 

Q1    WHAT  COUNTRIES  COMPRISE  THE  EUROPEAN  ECONOMIC  AREA  (EEA)?

A     European Union

Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom,

European Free Trade Area

 Iceland, Liechtenstein, Norway.

Other states

Switzerland  

Q2       WHO  IS  A  POSTED  WORKER?

A         You are a posted worker if: -

  • Your normal employment is in Ireland
  • Your employer has employment activity in Ireland
  • You are sent by your employer to work in another EEA State on a temporary basis.  

Q3       WHERE  DO  I  PAY  MY  PRSI?

A         Under EU Regulations 1408/71 Article 13.1 and 883/04(since 1 st May 2010) Article 11.1, a person shall be insured for Social Insurance Contributions (PRSI) in a single Member State only.  Generally, employment is insurable in the State where it takes place.  However, if you are an employed/self-employed person who is posted from Ireland to work in another EEA State, you may be entitled to apply for an E101 Certificate (Regulation 1408/71) or an A1 Portal Document (Regulation 883/04).  This Certificate will exempt you and your employer from paying Social Insurance in the country where you are posted to and authorises it payable to the country where you were posted from. 

Q4       WHAT  MUST  I  DO  BEFORE  I  AM  SENT  ABROAD?

A         You or your employer must request an Application Form for an E101 Certificate/A1 Portable Document.  This form must be completed and signed by you or your employer.  There is also a Company Registration form which must be completed when companies are applying first time for a decision on which Member States legislation applies.  These application forms are available from the following; 

                        http://www.welfare.ie/EN/Topics/PRSI/intposts/Pages/intindex.aspx

International Postings
Department of Social Protection
Cork Road
Waterford

LoCall: 1890 690 690 (from the Republic of Ireland only)

Telephone: + 353 1 4715898 (from Northern Ireland or overseas) Fax: + 353 51 877838

It is advisable to make an application for an E101 Certificate/A1 Portable Document as soon as it is known when the posting will take place and not later than four weeks before the date of departure. 

Once the conditions laid down by the legislation have been met an E101 Certificate/A1 Portable Document will be issued.  This is an important document and should be retained for inspection by the Authorities in the Member States where you will be carrying out your work.

Q5    WHAT  IS  AN  E101  CERTIFICATE/A1  PORTABLE  DOCUMENT?

  A         An E101 Certificate/A1 Portable Document indicates in which Member State you continue to pay your social insurance contributions and confirms that you have no obligation to pay contributions in another Member State for the duration stated on the certificate/document. 

Q6    WHAT  MUST  I  DO  WITH  THE  E101  CERTIFICATE/A1  PORTABLE  DOCUMENT?

A         As a posted worker, you (or your employer) should always have the E101 Certificate/A1 Portable Document available for inspection by the Social Security Authorities of the EEA State in which you are working.  If you are unable to present the certificate/document, you and your employer become insurable in the State where the work is carried out. 

Q7       WHAT  CONDITIONS  MUST  BE  SATISFIED  BEFORE  AN  E101  CERTIFICATE/A1  PORTABLE DOCUMENT  CAN  BE  GRANTED?

A  

  • The posting must be of a temporary nature (generally for not more than 24 months).
  • The company sending you abroad must perform substantial activity in Ireland.
  • The work being undertaken by you must be carried out for the employer sending you abroad i.e. throughout the period of posting a direct relationship must be maintained between you and your Irish employer.  Under no circumstances should you (the employee) be made available to another undertaking.
  • In the case of an employment agency, the employer must hold a current employment agency license from the Department of Enterprise, Trade and Innovation and must have business activity in Ireland while recruiting workers for employment abroad.
  • The posting is to a single Member State only.  If you intend going to another State to work on a different project, a new E101 Certificate/A1 Portable Document, subject to the usual conditions, must be applied for.
  • The employee must not be replacing another posted worker whose period of posting has ended.  

Q8    WHAT  ARE  THE  BENEFITS  OF  THE  E101  CERTIFICATE/A1 PORTABLE DOCUMENT?  

A         When the E101 Certificate/A1 Portable Document is granted, you continue to pay PRSI contributions in Ireland while employed in another EEA State.  This means that your rights to Irish Social Insurance benefits are being preserved while you are temporarily working abroad. 

       In addition, an E106 Certificate/S1 Portable Document ensures that you have the same health entitlements in the State to which you are being posted, as are available to nationals of that State.  You should contact your local HSE office before you go to another EU state to obtain an E106 Certificate/S1 Portable Document.   

Q9    HOW  LONG  DOES  AN  E101  CERTIFICATE/A1  PORTABLE  DOCUMENT  LAST? 

A         An E101 Certificate/A1 Portable Document is valid for any period up to twenty four months.  In certain circumstances, it is possible to extend this period.  If this is necessary, you should contact International Postings Section, Department of Social Protection.  This should be done in advance of the E101 Certificate/A1 Portable Document expiring.  This Department will contact the Social Security Authorities in the State where you are working, requesting their mutual consent for you to continue to remain subject to Irish Social insurance for a further temporary period.  Confirmation from the authorities in the other State may take time.  Please note, extending temporary postings cannot continue indefinitely. 

Q10    IF  I  CONTINUE  PAYING  IRISH  PRSI  WHILE  POSTED  ABROAD,  WILL  I  BE  ENTITLED  TO  THE  SAME  BENEFITS,  SUBJECT  TO  THE  USUAL CONDITIONS,  AS  IF  I  HAD  REMAINED  WORKING  IN  IRELAND?  

A         Yes. You will maintain the same rights to Irish benefits, as if your employment had taken place in Ireland.  However, if your contract terminates while abroad, you will not be entitled to claim Irish Jobseekers Benefit until you return to Ireland. 

       You may also qualify for Treatment Benefit (dental, optical and aural) from this Department.  You can only avail of this treatment in Ireland. 

       If you become ill and wish to claim Illness Benefit while you are abroad you should forward your medical certificates to the local social security office in the State where you are working.  That office will transmit your claim to the Department of Social Protection, Ireland who will arrange for payment, provided you satisfy the necessary conditions. 

Q11     WHAT  SHOULD  I  DO  IF  I  CEASE  TO  BE  A  POSTED  WORKER  AND  WISH  TO  BECOME  INSURABLE  UNDER  THE  SOCIAL  SECURITY  SYSTEM  IN  THE  OTHER  STATE?  

A         You should contact the relevant social security authority in the State where your employment as a posted worker ceases.  Your (or your employer) should notify the Department of the change in the circumstances of the E101 Certificate/A1 Portable Document already issued. 

Q12     ARE  THERE  ANY  DISADVANTAGES  IN  PAYING  SOCIAL  INSURANCE  CONTRIBUTIONS  IN  ANOTHER  EEA  STATE?  

A         No, as under EU law, you can have periods of insurability in other EEA States combined with periods of insurability in Ireland to help you qualify for benefit either in Ireland or in whatever EEA State you are working. 

Q13     HOW  ARE  THE  PRSI  CONTRIBUTIONS  PAID  BY  MY  EMPLOYER  WHILE  I  AM  ABROAD?  

A         Payment of PRSI may continue as normal under the P35 system via the monthly P30 to Revenue.   

NOTE:  Queries relating to payment of income tax or universal social charge should be directed to your local tax office. 

Q14     WHAT IS THE POSITION IF I AM SELF-EMPLOYED? 

A         If you are normally self-employed in Ireland and go to work temporarily in another EEA State, you may apply to the International Postings Section for an E101 Certificate/A1 Portable Document.  Once the qualifying conditions have been met, an E101 Certificate/A1 Portable Document will be issued to you and you may continue to pay your PRSI contributions in Ireland.  A self-employed person continues to pays Class S PRSI contributions through the self-assessment system.  This application must be made no later than 4 weeks in advance of your departure. 

Q15     IN  WHAT  OTHER  CASES  IS  THE  E101  CERTIFICATE/A1 PORTABLE DOCUMENTAPPLICABLE? 

A         If you are normally employed in two or more EEA States, you should apply for the E101 Certificate/A1 Portable Document from the authorities in the State where you reside.  This situation also applies to persons who are self-employed in two or more EEA States. 

If you are simultaneously self-employed in one EEA State and employed in another EEA State, you normally pay your Social Insurance to the EEA State where you are employed.  You should apply to the authorities in the EEA State where you are employed for an E101 Certificate.  Please note there are exceptions to this rule. 

Q16     WHO  PAYS  CHILD  BENEFIT  DURING  THE  PERIOD  WHILE  I  AM  ABROAD? 

A         Under EU law, Child Benefit is payable by the State under whose legislation you are insured.  Therefore, if you continue paying PRSI in Ireland, Child Benefit will be paid by Ireland in the normal way.  You will be asked to provide a copy of your E101 Certificate/A1 Portable Document to show that Irish social insurance legislation applies.  If you are subject to the legislation of the country where you are working (E101 Certificate/A1 Portable Document has not been issued by Ireland), you should make arrangements for the payment of Child Benefit from the relevant authorities in the country where you are working.  Further details regarding Child Benefit are available from: 

Child Benefit Section
Department of Social Protection
St Oliver Plunkett Road
Letterkenny
Co Donegal

Telephone: +353 74 9164400

Locall: 1890 400 400  

POSTINGS OUTSIDE THE EUROPEAN ECONOMIC AREA (EEA)

Q17     WHERE ARE PRSI CONTRIBUTIONS PAID?

A         Persons employed in Ireland who are sent by their employer to work in a country outside the EEA and Bilateral agreement parties are compulsorily subject to Irish Social Insurance for at least the first 52 weeks of their posting.  Once the conditions of the posting continue to be fulfilled payment of PRSI may continue up to a maximum of five years. The employer must apply to this Department for a decision to allow continuation to Irish PRSI. The employer must complete the Application Form ‘Postings under SI 312/96 and Bilateral Agreements’ and send to this office at least 4 weeks prior to posting. 

Q18     HOW ARE PRSI PAYMENTS MADE? 

A         Payment of PRSI may continue as normal under the P35 system via the monthly P30 to Revenue.   

Q19     ARE  THERE  ANY  OTHER  SPECIAL  ARRANGEMENTS  WITH  COUNTRIES  OUTSIDE  THE  EEA? 

A         Yes, Ireland has social security bilateral agreements with Australia, Canada, Japan, New Zealand, Quebec, Republic of Korea, United Kingdom (Isle of Man and Channel Islands) and United States of America.  Details of these arrangements are contained in leaflets available at www.welfare.ie.  Postings to countries outside the EEA and Bilateral agreements are dealt with under Article 98 of Statutory Instrument 312 of 1996.  

Q20    WHAT  ARE  THE  ADVANTAGES  OF  BILATERAL  AGREEMENTS? 

A         Where there are bilateral agreements between Ireland and another country, a person who is temporarily posted by an employer to work in the other State may remain subject to the legislation of Ireland (continue to pay PRSI in Ireland) and be exempt from Social Insurance contributions in the other State.  Bilateral Agreements also contain provisions for pensions.  Further information on these agreements may be obtained from: 

International Postings
Department of Social Protection
Cork Road
Waterford

LoCall: 1890 690 690 (from the Republic of Ireland only)
Telephone: + 353 1 4715898 (from Northern Ireland or overseas)
Fax: + 353 51 877838 

MORE INFORMATION 

Other information which might be of interest include:-

SW14PRSI Contribution Rates and user guide
SW74PRSI for self-employed
SW84Ireland/Canada Social Security Agreement
SW87Ireland/Australia Social Security Agreement
SW91Ireland/United States of America Social Security Agreement
SW95Ireland/New Zealand Social Security Agreement 
SW96Ireland/Quebec Social Security Agreement
Statutory Instrument 527/2010 Ireland/Japan Social Security Agreement
Statutory Instrument 701/2007Ireland/United Kingdom Social Security Agreement
Statutory Instrument 552/2008Ireland/Republic of Korea Social Security Agreement  

Last modified:25/01/2011
 

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