Guide for Exemption Application under the Agreement between Korea and Luxembourg

How to be exempted from Luxembourgian Social Security Contributions

• If you are mandatorily covered by the Korean legislation and detached to Luxembourg for temporary work (or self-employment), you can be exempt from Luxembourgian social security contributions, provided that you obtain "a Certificate of Coverage under the Social Security Agreement" from the National Pension Service of Korea.
• 1. A Request for a Korean Certificate of Coverage
  • - If you are an employee, your employer in Korea must request a Korean Certificate of Coverage.
  • - If you are self-employed, you yourself must request a Korean Certificate of Coverage.
• (1) Who requires a Korean Certificate of Coverage?
  • ① An employee who is sent to work in Luxembourg for a certain period of time (no more than 5 years) by an employer in Korea.
  • ② A person who ordinarily resides in Korea is engaged in self-employed activities in Luxembourg or in both countries for no more than 5 years.
  • ③ A person who ordinarily resides in Korea is engaged in income-earning activities(as an employee or a self-employed person) in both countries for no more than 5 years.
    ※ An employee or a self-employed person specified in ①, ②, ③ who is granted an extension of the detached(working) period by mutual consent between the two countries.
• (2) How to request a Korean Certificate of Coverage?
  • ① The employer must request a Korean Certificate of Coverage by visiting the National Pension Service of Korea with the required documents or sending the required documents to the National Pension Service of Korea by EDI, mail or fax.
  • ② National Pension Service, Center for International Affairs, 6^th Floor, Kukmin-Yeonkum Building, 180, Giji-Ro, Deokjin-Gu, Jeonju-Si, JEONBUK STATE, 54870, Korea
    - Fax (063)900-3404
• (3) Required Documents
  • ① When you request the Certificate, you must submit an "Application for Certificate of Coverage under the Social Security Agreement between Korea and Luxembourg" and documents to confirm the employee's detachment such as a detachment order. Moreover, the certificates that the detached employee is covered by the health insurance and industrial accident compensation insurance are required to be handed in as well.
  • ② An "Application for Certificate of Coverage under the Social Security Agreement between Korea and Luxembourg"form is available on our web-site -> Social Security Agreement -> Forms. You can also obtain this document by contacting NPS.
• 2. Submission of the Certificate of Coverage to the Luxembourgian Competent Institution.
  • An employer who is responsible for paying social security contributions is exempt from paying social security contributions for the period specified on a Korean Certificate of Coverage under the Agreement on Social Security by submitting the Certificate to the Luxembourgian social security institution.
  • If a contributor has already paid contributions for the previous exemption period, within a certain period, he/she is able to request a refund according to the internal procedure. However, in some cases, there could be limitations on the period regarding retroactive exemptions, so we recommend that you request the exemption in time.

How to be exempted from the Korean National Pension Scheme

If you are mandatorily covered by the Luxembourgian social security system and temporarily work(or are self-employed) in Korea, you can be exempted from the Korean National Pension Scheme, provided that you get "a Certificate of Coverage under the Social Security Agreement" from a Competent Institution in Luxembourg and submit it to the Korean National Pension Service.

• 1. A Request for a Luxembourgian Certificate of Coverage
  • - If you are an employee, your employer in Luxembourg must request a Luxembourgian certificate of coverage.
  • - If you are self-employed, you must personally request a Luxembourgian certificate of coverage.
• (1) Who requires a Luxembourgian Certificate of Coverage?
  • ① An employee who is sent to work in Korea for a certain period of time (no more than 5 years) by an employer in Luxembourg.
  • ② A person who ordinarily resides in Luxembourg is engaged in self-employed activities in Korea or in both countries for no more than 5 years.
  • ③A person who ordinarily resides in Luxembourg is engaged in income-earning activities(as an employee or a self-employed person) in both countries for no more than 5 years.
    ※ An employee or a self-employed person specified in ①, ②, ③ who is granted an extension of the detached(working) period by mutual consent between the two countries.
• (2) How to request a Luxembourgian Certificate of Coverage?
  • - You must request a Certificate of Coverage over the phone or by fax to a Competent Institution in Luxembourg with the required documents according to its internal regulations.
• (3) Competent Institution of Certificate of Coverage Issuance in Luxembourg
  • - the Common Centre of Social Security (www.ccss.lu)

• 2. Submission of the Certificate of Coverage to the Korean National Pension Service
  • ① The following must be submitted by your employer if you are an employee or by you personally if you are self-employed; an "application of exemption" as well as an original copy of "Luxembourgian Certificate of Coverage under the Social Security Agreement", and a copy of your identification to the Center for International Affairs or the regional office by visiting or by sending a registered letter (Because an original copy must be submitted, a facsimile will not be accepted).
  • ② If you submit a "Luxembourgian Certificate of Coverage under the Social Security Agreement", you are exempt from Coverage under the Korean legislation for the period shown on the same Certificate. If you have already paid contributions before you submit your Certificate, the amount of the contributions already paid can be transferred to your due contributions or refunded.
  • ※ Information here on our web-site is a general guide. You can get more information about the exemption of coverage from the Center for International Affairs of the NPS or from any regional office of the NPS.