Number of certificates issued fell in 2020

In 2020, the Finnish Centre for Pensions issued a total of 11,000 decisions on coverage by Finnish social security while working abroad.

The number of certificates granted was 9,300, some 2,000 less than the year before. The proportion of automated decisions was up to 43%. Over 80% of all certificates were issued to men.

Certificates of coverage by Finnish social security issued by the Finnish Centre for Pensions in 2014–2020

More than 40% of all certificates granted were issued to people working in several countries. These people may have several different employers in more than one country, or they may work regularly for a single employer in several countries. Men worked in several countries more often than women: 47% of certificates granted to men were for working in several countries, while the corresponding figure for women was 30%.

The largest number of single-country certificates were issued for work in Sweden. For men, the most common single-country destinations were Sweden, Germany and the United States. For women, the top three destinations were Belgium, Spain and Germany. Among the countries to which more than 100 certificates were issued, the only one where women were in the majority was Belgium (57%).

More than 60% of all certificates were issued to persons under 45 years of age. More than 70% of women who received a certificate were under 45.

Certificates of coverage by Finnish social security issued by the Finnish Centre for Pensions in 2020, by age and gender

More than 80% of the certificates granted in 2020 were issued to workers. Civil servants and self-employed persons both accounted for 5% of all certificates. Sailors, grant recipients and other groups each accounted for less than 4%. The only groups where women outnumbered men were civil servants and grant recipients.

In all personnel groups over half of all certificates were for periods shorter than one year. On average, certificates were issued for the longest period in the group of civil servants and self-employed persons and for the shortest period in the group of grant recipients.

The number of notifications of change in posting status filed with the Finnish Centre for Pensions in 2020 more than doubled from the year before. The increase was particularly notable in the wake of the corona outbreak from March onwards. In April the number of posted workers returning to Finland was more than six times higher than at the same time the year before. During the year a total of 1,100 persons returned to Finland following a change in posting status.

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Statistics on insurance for work abroad and posted workers

Producer: Finnish Centre for Pensions
Website: Statistics on insurance for work abroad and posted workers
Subject area: Social protection
Part of the Official Statistics of Finland (OSF): No
ISSN: 2669-9052

Description

The statistics contains data on the number of persons posted from Finland to EU countries or countries with which Finland has a social security agreement or who work in several countries.

Data content

The statistics contains data on decisions regarding coverage by Finnish social security.

Classifications

target country, age, gender, personnel group, certificate’s period of validity

Methods of data collection and source

The data is based on solutions issued by the Finnish Centre for Pensions regarding the application of Finnish social security laws.

Update frequency

The data is updated once a year.

Time of completion or release

The data is released during the first half of the year following the statistical year. The time of release is notified each year in the release calendar for statistics https://www.etk.fi/en/statistics-2/statistics/release-calendar/.

Time series

The statistics has been released as of the year 2019. The time series is from the year 2005.

Key words

social insurance, workforce mobility, posted workers, working abroad, EU Regulation on social security, A1 certificate, social security agreement

Concepts and definitions

A1 certificate, certificate of a posted worker

The A1 certificate states which country’s social security laws will be applied to the person to whom the certificate has been issued.

A person posted to an EU/EEA country, Switzerland or a country with which Finland has a social security agreement, and who continues to be covered by Finnish social security laws, needs a certificate (an A1 certificate in the EU/EEA area) to earn a pension to Finland. The certificate is issued, upon application, by the Finnish Centre for Pensions.

Age

In the statistics, the age of a person is their age at the end of the statistical year.

Automated decision

A decision on an application which is issued automatically by the processing system, without the input of a handler.

Change in posting status

A notification of change in foreign posting status filed by the employer or employee, for instance because a posting abroad has been terminated earlier than intended.

EU social security regulation

The mobility of persons moving between the EU Member States is regulated by the EU Regulation on social security 883/2004.

The Regulation is applied in EU countries, Iceland, Lichtenstein, Norway and Switzerland.

Exemption

An agreement between authorities based on which the applicable social security rules determined for a person differ from what is regulated in the EU Regulation on social security or a bilateral social security agreement.

Processing time

The processing time begins on the date that the Finnish Centre for Pensions receives the application and ends on the date that the Finnish Centre for Pensions issues its decision.

Personnel group

The personnel groups referred to in the statistics are employer, sailor, grant recipient, civil servant, flight crew and self-employed person.

The division into personnel groups is based on the EU Regulation on social security and the social security agreements.

Posted worker

A worker whom a Finnish employer sends abroad to work for a fixed period. The pension of a posted worker will accrue under Finnish laws if the conditions for posting set in the EU Regulation on social security or a bilateral social security agreement are met.

Social security agreement

An agreement between two countries that regulates the social security of individuals who are mobile between these countries.

Finland has bilateral social security agreements with Australia, Canada, Chile, China, India, Israel, Québec, South Korea and the U.S.A.

Worker who works in several countries

A person as referred to in Article 13 of the EU Regulation on social security who works regularly in two or more EU Member States.

Quality description: Statistics on insurance for work abroad and posted workers 2020

The statistics on insurance for work abroad and posted workers is published by the Finnish Centre for Pensions.

The Act on the Finnish Centre for Pensions states that the responsibilities of the institution include, for example, the compiling of statistics in its field of operation. The Planning Department at the Finnish Centre for Pensions is in charge of producing the statistics.

The statistics is financed by the Finnish Centre for Pensions.

Relevance of statistical information

The Statistics on insurance for work abroad and posted workers describes the number of workers and other personnel groups posted from Finland to EU and social security agreement countries. The data is based on solutions issued by the Finnish Centre for Pensions regarding the application of Finnish social security laws.

The Finnish Centre for Pensions decides whether an employed person, an official or a self-employed person is to be covered by Finnish social security laws in situations in which, under the EU Regulation on social security, the person can continue to be covered by Finnish social security laws. A person who continues to be covered by Finnish social security laws will be issued an A1 certificate. As a rule, the certificate must be applied for. In certain situations, however, the Finnish Centre for Pensions can issue a decision based on the information it has received, even when the certificate has not been applied for.

The Finnish Centre for Pensions also decides whether a person can be issued a certificate or a decision on coverage under Finnish social security laws based on the social security agreements in force.

The competence to issue the above-described decisions lies solely with the Finnish Centre for Pensions. Hence, the statistics offers a comprehensive overall view of posted workers and other personnel groups posted from Finland to EU and social security agreement countries.

The statistics does not include persons who

  • work in EU or social security agreement countries in a local employment relationship, or
  • work in other than EU or social security agreement countries.

The same person can be issued a certificate several times in one year, so no direct conclusions can be drawn on how many persons have gone abroad from Finland to EU and social security agreement countries per year.

Based on the statistics, it is also impossible to determine whether the persons are (under labour law) posted workers or whether directives or other regulations on posted workers can be applied to them.

The statistics includes the number of received applications and decisions issued, divided by country and personnel groups. The data is classified according to age, gender and target country.

Correctness and accuracy of data

The data of the statistics is based on the total sample of the decisions issued and applications received by the Finnish Centre for Pensions in each given year. The data has been compiled based on implementation data used within the earnings-related pension system.

Flaws detected in the statistics are immediately corrected on the website. A separate bulletin is issued on significant errors.

Timeliness and promptness of published data

The data in the statistics is released once a year at the beginning of the year following the statistical year. The date of publication of the statistics is presented in the Release Calendar on the website of the Finnish Centre for Pensions.

The data in the statistics is final.

Coherence and comparability of data

The statistics has been released as of the year 2019. The time series has been produced in retrospect as of the statistical year 2005.

The comparability of the time series depends on, among other things, the following amendments:

  • The register that the statistics are based on were changed in 2015.
  • The number of EU and social security agreement countries has grown.
  • The definitions of the personnel groups have changed due to changes to regulations.
  • The awareness of the necessity of the certificates has grown. This, for one, has led to a growth in the number of applications for certificates.

The European Commission regularly publishes statistics on the labour force mobility within the EU and on granted A1 certificates. The statistics on the A1 certificates granted by Finland are based on the decisions issued by the Finnish Centre for Pensions. For the main part, they are identical with this statistics.

Availability and clarity of data

The data on the statistics are published annually on the website of the statistics and in the statistical database of the Finnish Centre for Pensions at https://tilastot.etk.fi/.

The description of the statistics is published on the website of the statistics.

The statistical service of the Finnish Centre for Pensions provides additional information about the statistics upon request by e-mail at tilastot(at)etk.fi.

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