The Importance of the A1 Form for International Workers

As more employees are transferred across EU countries to support international business, understanding how social insurance systems coordinate across borders has become essential for HR professionals and international hires alike. A key tool in this process is the A1 Form, issued by Romania's National House of Public Pensions.

What the A1 Form is

The A1 Form is an official document issued by the National House of Public Pensions, applicable across the European Union, the European Economic Area, and Switzerland. It serves as proof of payment of social contributions in one European country, avoiding the need to pay those contributions in multiple states at once. Its use is governed by Regulation (EC) No. 883/2004 on the coordination of social security systems and Regulation (EC) No. 987/2009.

When it applies

The A1 Form can be obtained in the context of posting, when a worker is sent to work temporarily in another state, or in cases of multi-activity, when a worker engages in salaried or self-employed activity in two or more member states. The maximum posting period is generally 24 months, though this can be extended in exceptional cases with the agreement of the authorities involved. Its validity also extends beyond the EU through Romania's bilateral social security agreements with countries including Canada, Israel, Albania, South Korea, North Macedonia, Moldova, Serbia, Turkey, Quebec, Chile, and Uruguay, with posting durations varying by country.

Requirements for obtaining the A1 Form

For the employer, requirements include:

• Registration with the National Trade Register Office in Romania, with a CIF, CUI, or Tax Identification Number
• A turnover generated in Romania of at least 25 percent of the company's total turnover
• A defined percentage of employees working in Romania
• No outstanding debts to the Romanian state

For the worker, requirements include performing the activity for the Romanian employer doing the posting, working in a field aligned with that employer's activity, maintaining a subordinate relationship throughout the posting period, and being subject to the legislation of the member state where the employer is established before the salaried activity begins.

Benefits of the A1 Form

• Social security continuity: employees can work in another member state for up to two years while maintaining their social insurance status in their home country
• Insurance in the home country: benefits such as health insurance, pensions, and unemployment allowances continue to be administered under home-country rules
• No professional qualification recognition needed: eliminates the need for host-country recognition of professional qualifications, reducing bureaucracy
• Exemption from a work permit: removes the need to obtain a separate work permit in the host country
• Simplified retirement: employees avoid having to correspond with social security institutions in every country where they were posted
• Tax treatment: postings lasting less than six months are generally exempt from income tax in the host country
• Residence registration: postings exceeding three months require registering the worker's residence with the host country's competent authorities

The A1 Form in transnational secondment

Within transnational secondment, the A1 Form plays a central role in protecting workers' rights and ensuring compliance with social regulations. It provides evidence that the posted worker remains socially insured in their home country despite the temporary posting, letting employers demonstrate to host-country authorities that the worker is already covered and paying contributions at home, avoiding double taxation and extra registration obligations. Without this document, workers could face repeated registrations across different countries' social insurance systems, adding administrative complexity and cost for both employees and employers.

Why this matters

As cross-border work becomes more common, understanding and correctly applying the rules around social insurance coordination is essential to protecting the rights of international workers. The A1 Form provides clarity and transparency throughout the posting process, supporting a fair and compliant international labor market for both employers and employees.

Sources: Regulation (EC) No. 883/2004, Regulation (EC) No. 987/2009, Romanian National House of Public Pensions