In general, an expatriate has access to the Dutch social security system if he or she holds a residence permit and their employer obtained a valid work permit for their activities.   The Netherlands has a complicated and detailed social security system. Items such as unemployment benefits (WW), old age benefits (AOW), health insurance benefits (ZFW) and disability benefits (WAO) are covered by special laws, which are part of national insurance schemes or employee insurance schemes.   With regard to the employee insurance schemes, these automatically apply to persons legally employed in the Netherlands. Persons legally residing in the Netherlands are usually covered by national insurance schemes.   As a general rule, an expatriate is covered by the social security system and related legislation of the country in which he or she is employed, in this case the Netherlands.   Exceptions?   These days, sending employees to different parts of the world on a temporary basis is more or less common practice. The Netherlands currently harbours many thousands of expatriates and their families. But are they all required to hook up to the Dutch social security system during their temporary stay?   Fortunately for some the answer is no. Exceptions to the general rule are possible in certain cases where the foreign employer of the expatriate has timely and successfully requested for a continuation of the expatriate's own social security system based on a special Administrative Arrangement between the Netherlands and the expatriate's country of origin.   Administrative arrangements   The Netherlands has these special Administrative Arrangements with all EU/EER countries and with Australia, Bosnia-Herzegovina, Canada, Chile, Israel, Cabo Verde, Croatia, Macedonia, Morocco, New Zealand, Serbia/Montenegro, Slovenia, Tunisia, Turkey, United States of America and Switzerland.   Continuing the expatriate's own social security system may be recommendable for a number of reasons.   Usually, foreign employers prefer to stick to 'local' rules and regulations on social security. Switching to the unknown Dutch system is therefore not an attractive option. Sometimes high costs and lots of time and energy are involved since a switch may call for a different administrative approach and the set up of a new payroll, hiring Dutch accountants and bookkeepers in the process.   Up to five years   Depending on the specific Administrative Arrangement, continuance for certain periods of time is possible. For example the arrangements between the Netherlands and Australia, Canada, New Zealand and the United States of America allow for a maximum period of five years. During this period the so-called rule of 'secondment' applies, allowing for continued applicability of the expatriate's own social security system. Some conditions   Please note that the aforementioned is only possible if the expatriate is sent to the Netherlands on a temporary basis. Furthermore, a valid and continued employer-employee relationship between the foreign employer and the expatriate is required.   An employment agreement in writing can be used to certify this. Before and during the application for continuance the expatriate needs to be covered by his or her own (foreign) social security system. Also the foreign employer must be involved in substantial economic activities. Proof of registration of the company abroad and annual reports may be requested.   If all (legal) conditions are fully met, the competent social security authority in the expatriate's country of origin may grant a so-called Certificate of Applicable Legislation.   A Certificate of Applicable Legislation shows that the expatriate is covered by his or her own (foreign) social security system for a certain period of time. Payment of Dutch contributions is therefore not required, since the foreign employer already contributes under the applicable foreign social security legislation.   In closing   For some expatriates, bypassing the Dutch social security system is a viable and interesting option.   Based on a special Administrative Arrangement between the Netherlands and the expatriate's country of origin, a continuance of the expatriates own (foreign) social security system during the posting in the Netherlands is possible. For some nationalities a continuance of up to five years is attainable.   Expatriates temporarily coming to the Netherlands together with their foreign employers should explore this possibility.   This article is for informative purposes only, is general in nature, and is not intended to be a substitute for competent legal and professional advice. Dutch and international rules and regulations regarding aliens, work permits, visas, residence permits and social security are continuously subject to change. Patrick R. Rovers is a consultant with Van Velzen C.S. the Netherlands B.V. Tel: 016 143 7288 Subject: Relocation