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Social security law
Cross-border work without German social security contributions: How foreign social security systems affect Germany.
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What the legal term "radiation" means and when it applies.
How social security coverage differs from employment law coverage.
What specific requirements must be met to remain in the foreign social security system?
Why correctly testing radiation levels is essential for companies to avoid liability risks.
1. What does “radiation” mean?
2. Difference between incoming radiation and outgoing radiation
3. When does irradiation occur (prerequisites for irradiation)?
4. What are the consequences of the radiation?
5. FAQ Visa Law
6. Conclusion on Visa Law
1. What does "radiation" mean?
In the context of international staff deployment, we repeatedly encounter the concept of "Einstrahlung" (literally "relationship"), which plays a central role in social security law. In principle, the territoriality principle applies in Germany, which states that the law of the state in which the work is physically performed applies to employment. The "Einstrahlung" provision under Section 5 of the German Social Code, Book IV (SGB IV) , constitutes the crucial exception to this: it allows an employee who is temporarily sent to Germany by their foreign employer to remain subject to the social security law of their home country .
In this case, the foreign legal system effectively extends into German territory, meaning no contributions to German pension, health, or unemployment insurance are due. In our daily practice, we see that this regulation serves, in particular, to minimize the administrative burden for short-term assignments abroad and to protect the continuity of the employee 's insurance record. Without this legal framework, companies would often have to pay contributions for their employees into two systems simultaneously, which would represent an enormous financial and bureaucratic hurdle.
2. Difference between incoming radiation and outgoing radiation
The terms "posting" and "secondment" are often used synonymously, which is legally imprecise and can lead to serious errors. While "posting" simply answers the question of which social security law applies, the term "secondment" often refers to the labor law component, which is governed by the European Posting of Workers Directive. We always point out to our clients that even with a successful social security posting, mandatory German working conditions , such as the statutory minimum wage and vacation entitlements , must still be observed.
Another important aspect is the distinction between this and the so-called " posting abroad ," which is defined in Section 4 of the German Social Code, Book IV (SGB IV). While "posting abroad" governs the situation where an employee comes to Germany from abroad, " posting abroad" deals with the reverse scenario: an employee working in Germany is temporarily posted abroad and remains insured here. For the success of a cross-border project, it is crucial to clearly distinguish between these concepts and, particularly within the EU context, to obtain the A1 certificate as proof of existing insurance coverage abroad in a timely manner.
3. When does radiation occur (prerequisites)?
For the legal consequences of Section 5 of the German Social Code, Book IV (SGB IV) to apply and for German social insurance obligations to cease, several criteria must be met cumulatively. First, an existing employment relationship abroad is mandatory; the employment contract with the sending company must therefore remain in effect in Germany for the entire duration of the assignment. Furthermore, it must be a genuine posting, in which the employee works in Germany at the direction of their employer to provide a specific service , while their center of life usually remains abroad.
A particularly critical point in the review is the time limitation of the assignment. The work in Germany must be limited in duration from the outset, which can arise either from the nature of the task or from a contractual agreement. Should the time limit be lacking or should the assignment gradually transition into permanent employment, the privilege of posting abroad is immediately forfeited. We therefore examine very carefully for our clients whether the situation of "Germany as the place of work without residence" is legally documented in order to avoid accusations of a sham posting.
4. What are the consequences of the radiation?
The most important consequence of the integration is the avoidance of double insurance . Companies can thus calculate their personnel costs precisely, as they do not have to fear additional payroll taxes in Germany. This creates significant competitive advantages, especially for companies from countries with lower social security contributions, which can offer their services more cheaply in Germany. However, this advantage is tied to strict compliance, as errors can result in retroactive German pension and health insurance obligations.
For employers , unrecognized exposure to the German social security system poses a significant liability risk , as social security institutions can retroactively demand contributions, including late payment surcharges, for several years. Furthermore, exposure to the German social security system can serve as a shield against fines during inspections, such as those conducted by customs on construction sites, provided the relevant documentation (such as the A1 certificate or proof of bilateral social security agreements ) is available. Without such an agreement with third countries, only the strict criteria of Section 5 of the German Social Code, Book IV (SGB IV) apply, and we ensure compliance with these criteria as part of our consulting services.
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5. FAQ Visa Law
What is the legal basis for radiation in Germany?
The central provision in German law is § 5 SGB IV (Fourth Book of the Social Code).
Does every employee from abroad need an A1 certificate?
Within the EU, the EEA and Switzerland, the A1 certificate is the necessary proof of irradiance according to Regulation EC No. 883/2004.
Does this radiation exposure also apply to employees from the USA or Turkey?
Yes, provided that a bilateral social security agreement exists between Germany and these countries that regulates the radiation exposure. Otherwise, Section 5 of the German Social Code, Book IV (SGB IV) applies directly.
Do I have to pay the German minimum wage despite the radiation exposure?
Yes, the radiation exposure only affects social security. Minimum labor standards often still need to be met.
What happens if the time limit for the secondment is lifted?
In this case, the radiation exposure usually ends and insurance coverage becomes mandatory in Germany from that point onwards.
6. Conclusion on Visa Law
International assignments are an indispensable tool for the international economy, ensuring the legally secure and financially viable mobility of skilled workers . Section 5 of the German Social Code, Book IV (SGB IV) guarantees that temporary assignments in Germany do not fail due to bureaucratic hurdles in social security law. Nevertheless, caution is advised: the distinction between international assignments and employment subject to social security contributions in Germany is often subtle. We support you in structuring these processes in a legally compliant manner, minimizing liability risks, and providing your employees with the necessary documentation.
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Further Information
List of Sources (Paywall)
[1] Timmermann/Uznanski/Mävers/Klaus, Employment of foreign workers, 2nd edition 2026