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Managing director shareholder and social insurances

In the Netherlands all employees are socially insured in the Netherlands unless a so called A1 statement has been provided, then the concerning employees are socially insured in that other country. How about the managing director major shareholder of his own company. Is this employee socially insured?

Social insurance

In general this managing director is not insured for social premiums, but sometimes they are. If you are a managing director of your own BV company or foreign limited liability company with a presence in the Netherlands, then you are equal to an entrepreneur for social premiums.
Having no social insurances implies you are not insured for disability, unemployment or other social benefits.

This situation is only different when you are a managing director of a company where you are not the only shareholder. If there are more shareholders to the extent that they can decide whether or not you can be kept on as employee, then you are compulsory socially insured.

It does happen that one employee sets up activities in another country for the employer. For some reason the BV company construction is then set up where this employee becomes a managing director of this BV company. This employee then engages a number of obligations connected to being a managing director of a BV company that might not have been intended. For the prescribed situation this construction is not the solution. The solution is to have the employer become a non-resident employer, pay the employee a Dutch salary with Dutch wage tax and social premiums. Nothing more, nothing less.

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