BEST PRACTICE Example An
BEST PRACTICE Example An employee (German national) and his work colleague (US national), both resident in Germany, are working in Switzerland from May to September 2024 (5 months) for assembly work. In January 2024, both have already spent 2 weeks skiing in Zermatt (Switzerland) for private reasons. In December 2024, both employees are due to return to Switzerland for remedial work. Salaries are paid 100% in Germany and no costs are borne by a Swiss branch or subsidiary. Both are subject to the German social security system. In total, the two are in Switzerland for work purposes in the period from May to September 2024 and in the month of December, which means a total of 6 months. In this case, the Agreement on the Free Movement of Persons, which covers all branches of insurance, applies to the German employee. This means that the employee remains fully subject to the insurance system in the country of origin and can be exempted from the social security system in the country of assignment. Insurance cover and the scope of insurance remain in full, so that the employee does not suffer any gaps in insurance cover. The German employer must then obtain the A1 certificate, which confirms the employee's social security status in Germany. For the US employee, it is not the Agreement on the Free Movement of Persons that applies, but the bilateral social security agreement. The social security agreement between Germany and Switzerland also covers all branches of insurance, as does the Agreement on the Free Movement of Persons. For this reason, this means that the US employee can remain fully insured under the German insurance system without an insurance gap and with a lower scope of insurance. The German employer must obtain a Certificate of Coverage, which also confirms the employee's social security status in Germany. In both cases, the period of employment could be extended to a maximum of 24 months without this leading to a different assessment. This means that both employees remain insured in Germany and can be exempted in Switzerland. Excursus: If the employee resides in a country (as in the example in part 3 of this series in Angola) with which Switzerland does not have a valid social security agreement and is deployed from there for the 5 months for an assembly assignment in Switzerland, the employee would be subject to social security contributions from the first day in Switzerland. 6 convinus.com
BEST PRACTICE This means that the employee would have to pay social security contributions from the first day of employment in Switzerland. In addition to old-age, survivors' and disability insurance, this also includes unemployment insurance as well as health and accident insurance and a pension fund. In addition, the employee may be able to continue to pay social security contributions in Angola on a voluntary basis. In cases where there is no social security agreement, this means that the employer must expect higher costs. Scope of insurance The scope of insurance and adequate insurance cover are at the centre of the project and assembly assignment. Accident insurance cover is particularly important for assembly assignments. CONCLUSION Even if there are generally no disadvantages or additional costs in the first 24 months under the existing social insurance agreements, there are still a number of assignments for which special attention must be paid to adequate insurance cover. Series - Project and assembly assignments abroad: Part 1: Challenges in remuneration and expense reimbursement Part 2: When is a work permit required? Part 3: How can taxation be avoided? Part 4: Is there a social security obligation in the country of assignment? Part 5: Illuminating the various aspects using a practical example (monthly special) 7 convinus.com
Expat policy 
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