The Act I of 2004 on the Sport is amended by the Act XCIV of 2020 on the amendment of Sport Act regarding to the Olympian Annuity and the Act XCV of 2020 on the amendment of Sport Act regarding to Right to Entry

Information on the more important changes of the Act XCIV of 2020 on the amendment of Sport Act regarding to the Olympian Annuity

Some provisions of the Act I of 2004 on the Sport (hereinafter: Sport Act) is amended in the recent past days. The changes affects the rules of the Olympic Annuity and the rules of the Right to Entry. The affected provisions are the following:  Sport Act Sec. 33, 59, 60, 78/N and 78/O.

The Act XCIV of 2020 on the amendment of Sport Act regarding to the Olympian annuity hereinafter referred to as Amendment Act 7. The Act XCV of 2020 on the amendment of Sport Act regarding to the Right to Entry hereinafter referred as: Amendment Act 8.

The Sport Act Sec. 59 (3) is replaced by the following provision: ,,(3) the widow of the deceased medalist athlete is entitled to the Olympic annuity for the rest of her life from the month following the death of the athlete if she is an Hungarian citizen and she was the spouse of the medalist athlete in the time of the athlete’s death or she lived with him in common household without interruption in the previous 5 years of the athlete’s death.”

The Sport Act Sec. 60 (3) is replaced by the following provision: ,,(3) the widow of the deceased medalist athlete is entitled to the half part of the athlete’s annuity. The widow is entitled to the whole annuity of the athlete until their common minor child become adult person.”

The subtitle of the enter into force and transitions provisions of the Sport Act will be added with Sec. 78/N:

,,Sec. 78/N (1) If the person who is eligible for the widow’s annuity at the entry into force of the Amendment Act 7, after the entry into force of the Amendment Act 7 pursuant to its Sec. 60 (3) the person will be entitled to the whole widow’s annuity. The launch of the administrative procedure will be started by the application of the entitled person. Pursuant to this subsection from the entry into force of the Amendment Act 7, until the transfer of the altered amount of annuity for temporary period, the difference shall be paid with the altered amount of annuity in the value increased by the central base rate.

(2) If the widow of the medalist athlete is entitled to the Olympic annuity when the Amendment Act 7 enters into force, pursuant of its sec 59 (3) the widow will be entitled to the annuity which will be determined by the application of the entitled person according to this subsection.

This law will enter into force the day after its proclamation.

Information on the more important changes of the Act XCV of 2020 on the amendment of Sport Act regarding to Right to Entry

The following point e) is added to Sport Act Sec. 33 (2):

,,(1) The right to enter (right to enter) in the competition system (championship) can not be negotiable, the contract to that is void. The new point e) is an exception if:

e) the sporting enterprise with the right to entry formate a business association  for the purpose of participating in the same or higher league class of the competition system announced and organized by the same sports association. The right to entry shall be negotiated to the business association mentioned above by the sporting enterprise with the prior consent of the same sports federation and the sporting enterprise has no public due.

The following Subsection 2b is added to Sec. 33:

,,The sports federation may deny its prior consent to the conferment in accordance with point e) if the conditions of the conferment does not comply with the legal requirements and conditions determined in rules of the sport association. The body of the sport association which is marked in rules of the sport association, it may ex officio or upon request examine that the conferment of right to entry in accordance with the Section 2 point e) is aimed at breach of the conferment of right to entry. Based on the result of the examination, the sport federation delivers its reasonable decision with willing to taking into account all of the circumstances of the case that the sport association affected with the transfer of the right to entry whether it can participate in the competition system. The affected sport association may bring an action before the court or it can choose the arbitration against the decision of the right to entry of the sport federation within 30 days of the limitation period from the date of the communication of the decision.”

The following Sec. 78/O will be added to the entry into force and temporary provisions of the Sport Act:

,,Pursuant to the Sec. 78/O the section 33 (2) point e) and subsection 2b of the Amendment Act 8 shall be applied during the entry into the Championship of 2020-2021 too.”

This law will enter into force after 5th day of its proclamation.

Hungarian Gazette 2020 Issue 170



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The Court of Arbitration for Sport has made its decision in the case of Manchester City Football Club v. Union of European Football Association (UEFA)

Short summary of the decision of the CAS

The appeal of Manchester City Football Club was endorsed by the CAS. It means that the sports club can take part in the UEFA Champions League. The Manchester City Football Club also avoided to pay off the bigger part of the penalty that was imposed by the UEFA.

The UEFA previously implied Manchester City Football Club for 30 million Euro penalty because the sports club has breached the rules of its operation and the financial rules of UEFA. The club has spent more money for its needs than of its total income. This means that the club expense was greater than its income. Besides of the aforementioned facts, the UEFA has expelled the football club from the UEFA Champions League for 2 years.

The sports club has filed its appeal to CAS because the sports club did not agree with the allegations of UEFA. The Court of Arbitration for Sport has determined that the bigger part of the allegations of UEFA was ungrounded or time-barred therefore the CAS endorsed the football club’s appeal.

As the result of the award delivered by the CAS, Manchester City Football Club will not be expelled from the Champions League and the club has to pay only 10 million Euro instead of 30 million Euro penalty. The sports club was acquitted from the UEFA decision by the decision of the Court of Arbitration for Sport. According to the CAS decision, the sports club can take part in the Champions League.

The award of the CAS is 35 pages and it contains every single significant points about this case. The whole decision is available down below of that article. If you are interested in more details in connection with this case, please visit the website of the CAS.

Court of Arbitration for Sport official website

CAS 2019/A/6298 Manchester City FC v. UEFA



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The new Social Insurance Act and other tax and duties amended rules are coming

From 1 July 2020 significant changes will enter into force in the national social security system. The former Act LXXX of 1997 on the Eligibility for Social Security Benefits and the Private Pensions and the Fundings for These Services (hereinafter: SSBA or Social Security Benefits Act) will be replaced by the new Act CXXII of 2019 on Entitlements to Social Security Benefits and on Funding These Services (hereinafter: new SSBA or Social Security Benefits Act) after 23 years. The new Social Security Benefits Act contains more several new rules compared to the former Social Security Benefits Act and it also includes the implementing decrees. That article – due to its size limits – describes the more important changes only.

The new Social Security Benefits Act Sec. 6 (1) – contrary to the former Social Security Benefits Act Sec. 5 (1) – no longer contains the concept of person engaged in auxiliary activities in the sphere of the insured person for example pensioner entitled to draw pensions own his own right. The sphere of the insured person is clarified by the new SSBA Sec. 6 (1). From 1 July the flat rate contribution base will be introduced by the new social security law which qualifies as a new legal institution in the Hungarian social security system. The flat rate contribution base rate is 18.5 per cent contrary to the former rate of 8.5 per cent of health insurance and labor market contributions which was regulated in the previous Social Security Act Sec. 19 (3). The former health insurance and labor market contribution comprised: 4 per cent health insurance contributions provided in kind, 3 per cent health insurance contributions provided in money and 1.5 per cent in labor market contributions.

The new SSBA applies stricter rules then the former Social Security Benefits Act. Pursuant to the new SSBA Sec. 24 and 27 (2) the contribution base is 30 per cent of the minimum wage which shall be paid even if the income of the employee is smaller than the minimum wage.

In case of business partner and private entrepreneur the health insurance and labor market contributions shall be paid based on the mandatory minimum wage/guaranteed wage minimum instead of the former 150 per cent. The social security contribution base (Szocho) is still remains 112.5 per cent.

Increased maximum of family contribution allowance availing after the children will be introduced as a new element. The maximum of the allowance will be enforceable opposite to the rate of 18.5 per cent of the social contributions. The maximum rate of the family allowance is equal to rate of the social contribution base which is grown from the previous rate of 8.5 per cent to 18.5 per cent based on the new Social Security Benefits Act.

The rate of pension contribution is still 10 per cent.

The further renewal of the new Social Security Benefits Act is comprised in its Sec. 46 (2)-(3). The essence of the amendment in short if persons liable to pay do not fulfill their health service contributions (hereinafter: ESZO) payment obligation and the amount of arrears exceed the threefold monthly amount of ESZO, the social security number (TAJ number) will be invalid in connection with the requisitioning of the health service. The health service is not available free of charge except if the debt was paid retroactively before the health service was availed.

The ESZO unified monthly amount is 7710 HUF, which is daily 257 HUF. The ESZO shall be paid until the 12th day of the current month.

It is important to note that the National Tax and Customs Administration (hereinafter: state tax authority or NAV) shall supply the data of the arrears derived from non-fulfillment of the health service payment obligation to the Administrative Agency. The record is kept by the Headquarters of Hungarian State Treasury (MÁK).

Two more new benefits will be introduced from January 2020. One benefit is the adoption allowance, the other is the grandparent child-care benefits. The person entitled to adoption allowance who adopts or raising child who has reached the age of two. The person entitled to grandparent child-care benefits availing by grandparents who was insured person in one year of the two years preceding the benefits. The maximum amount of the benefit is 70 per cent of double the minimum wage.

The person who is insured in other member country of the European Economic Area (EEA) and avail of health service based on paying health service contribution, the natural person must refund that cost which charge the Health Insurance Fund. The specified amount of unjust requested health service contributions (ESZO) will be cancelled on the tax invoice by the state tax authority. The amount of unjust requested ESZO will be prescribed on the tax invoice as tax obligation by the Health Insurance Fund based on its data supply.

Further renewal is introduced by the new Social Security Benefits Act. Pursuant to the new SSBA Sec. 52 (3) an agreement for the provision of healthcare services may be concluded subject to assessment of the state of health of the person initiating the conclusion of the agreement, with the proviso that the agreement shall not cover healthcare services to be provided in connection with any disease, health impairment identified by the said medical examination. The medical examination for health assessment is subject to a fee. The medical examination for health assessment shall be ordered by the regulatory body empowered to conclude the agreement to be carried out by the healthcare service provider designated by the minister in charge of the health insurance system, according to the procedure therein provided for.

The SSBA Sec. 52 (4) states the following: an agreement for acquiring pensionable income and service time shall become operative on the day on which it is executed, at the earliest on the first day of the month to which it pertains. No arrangements shall be permitted for any preceding period. After that, payments of pension contributions shall be made by the twelfth day of the month following the month to which it pertains. Any default in payment shall result in termination of the agreement.

To summarize the above-mentioned two subpoints, it is indispensable to be assessed the state of health of the person who initiating the conclusion of the agreement to conclude an arrangement for the provision of healthcare services.

In addition to the aforementioned points, the health insurance rules have not changed.

It is worth to note that, in connection with the changes of the tax rules which concern the social security system that the vocational training scholarship will be tax-free and particular educational grants too. Additional change is to notify the state tax authority about the starting and terminating of the operation of the enterprises.

The simplified contribution to public revenues (EKHO) of the pensioners was reduced to 9.5 per cent and  the 17.5 per cent social security contribution (Szocho) will not have to be paid for them either.

These changes will enter into force from 1 July 2020. The article described the more important changes and amendments in short only to give an assistance in the complex and constantly changing Hungarian social security system.

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