29.09.2020   

I work abroad - what insurances do I owe?

I have realized that, as a citizen of the European Union, I can not only go on holiday freely to other European countries, but I also have the right to work there indefinitely.

Due to the difficulties I face in finding a job in Bulgaria, I decided to try abroad.

What is not clear to me so far is where will I have to pay my insurance after I leave? In Bulgaria or in the country where I will work?

First of all - what is insurance?

Insurance is a cash contribution that my employer deducts from my monthly salary. Their value depends on the amount of my salary, and they are paid by 60% of the employer and 40% of me, respectively. The only exception is if I am a self-employed person (artist, lawyer, etc.). Then I have to pay 100% of the amount myself.

Important! The availability of insurance is for the purpose of assisting an insured person in difficulty. For example, if I find myself in a situation of an accident at work, unemployment, maternity, illness and others, then I will receive financial assistance. However, my contributions will be collected every month, regardless of whether I find myself in a similar situation.

The money contributed by me and other citizens is accumulated in accounts of funds, which help insured persons in need. Such funds are, for example, "Pensions", "Non-employment pensions", "Accidents at work and occupational diseases", "General illness and maternity" and "Unemployment".

How are social security contributions paid?

In Bulgaria, the insurances are paid by the 25th of the month, referring to the previous month. That is, my social security contributions for March will have to be paid by my employer to the National Revenue Agency (NRA) by April 25.

Important! If my employer has not paid the due contribution, this will not affect my insurance rights. I will continue to be an insured person and my employer will be subject to a sanction. Also, I can check on the NSSI website whether my insurance payments are made regularly.

If I work in another EU country, to whom do I owe insurance?

When I work abroad, I will be insured either in my country of origin (Bulgaria) or in the country of residence (for example, France). Important! However, I cannot choose which of the two countries to insure myself in. This issue is determined by the law of the country in which I work.

In the field of social security, European countries do not have a unified policy. This means that each Member State applies its own laws, which determine its insurance policy. Therefore, I must look for information about the specific European country in which I plan to start working.

This is the only way I can know exactly how the insurances are collected there, by whom and when they will be paid. Detailed information about the insurance mechanism of each EU country can be found here.

Important! Apart from the country of residence, where I will be insured also depends on my employment status.

How does my employment status determine insurance?

For the insurance system is a very important factor whether I will be on an employment contract, self-employed, posted abroad or working in a neighboring country, but living in Bulgaria.

- For example, if I live and work in Germany, whether I am employed or self-employed, I must register with the German social security system. This is because in this case I will be able to receive my sickness, unemployment, pension, family benefits and other similar payments according to local law.

Important! In many countries, benefits may depend on how long I have been paying contributions. However, this includes all periods in which I have worked in EU countries. For example, in Germany, a minimum of 5 years of insurance is required to be entitled to an invalidity pension. If I have worked for 2 years in Germany, but also 4 more in Bulgaria as an insured person, then I will be entitled to a disability pension in Germany.

- If I am posted abroad for up to 2 years, then I continue to insure myself in Bulgaria. For this purpose I will have to fill in a form with which I prove that I remain insured in the Bulgarian social system while I am abroad. Also, if I am a seconded civil servant (I will work in a consulate, embassy or other official institution abroad), then I will be insured again according to the Bulgarian system.

Important! In both cases, in order to have access to healthcare in the country where I am posted, I will need to obtain a European Health Insurance Card.

- If I am a cross-border worker and work in one country (Romania), but live in another (Bulgaria), I will have to pay social security contributions in the country where I work. This means that I will be entitled to healthcare in Romania. However, I could receive medical care in Bulgaria as well. For this purpose I will need to take form S1 from the health insurance institution in Romania. He will give me the right to be treated in Bulgaria as well.