What is an E101 certificate?
If you are an expat from another EU country temporarily working in the Netherlands or have plans to work in the Netherlands in the future, it is important that you know about the E101 certificate and what it means for you. Put simply, the E101 certificate is a document which certifies that an EEA (European Economic Area) resident working for his or her employer outside his or her country of origin is covered by the social insurance legislation of his or her own country. Employees with an E101 certificate can thereby choose to pay social security premiums in their home country, instead of the country where they are working. This can have financial advantages. The E101 certificate only applies for EEA residents working within the EEA.
Background of the E101 certificate
The E101 certificate was created as a means to allow temporary expats to apply for exemption from local social security if they are being seconded to another EEA country by their employer. This means contractors can stay in their original social insurance plan or enter a different local plan by choice. The E101 certificate is available to every EEA resident working in a different EEA country, the only exception being employees working in international transport. An E101 certificate is valid for duration of 12 months, and can in some circumstances be extended annually for up to five years. It is important to note that each EU country offers the E101 certificate form in their local language.
Professional experience with the E101 certificate
As a professional payroll service provider that caters to expats, we have a unique understanding of both EU law in general and the E101 certificate specifically. Working in the Netherlands as an expat is a fantastic opportunity, but the complexities of European regulations such as the E101 certificate can be confusing. If you have any questions about the E101 certificate or would like professional assistance in matters related to EU guidelines for employment, Payroll Works’ Dutch Umbrella Company is always happy to assist you. We can explain more about the E101 certificate and how it might impact your personal situation, as well as offering advice on social insurance in the Netherlands and any matters regarding your pension.