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



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.

The Government Decree No. 140/2020 (21 April) on the Action Plan about the Necessary Relief of Tax Payment to Mitigation of the Economical Effect of the COVID-19 (hereinafter: Decree) Sec. 20 (1)-(3) carry into effect some changes during the pandemic period.

The employees who do not receive their wages during their leave because of the present situation, are still entitled to avail of the health service contribution for the duration of the epidemiological (pandemic) period.

From 1st May 2020, the employer – by the 12th day of the month following the current month – assesses, declares and pays the health service contribution after the employee.

At the employer request, the national tax and customs authority permits the employer to pay the amount of the health service contribution assessed and declared above until the 60th day after the end of the State of Emergency.

It can be stated from the provision of the Decree mentioned above that the employees are considered as insured person in the absence of their payment for the duration of the State of Emergency because of that situation. It shall be deemed that the employment relationship would be still existing, therefore the employer’s further obligation to assesses, declares and pays the health service contribution to the national tax and customs authority.

It seems to be that the legislator’s purpose was to exempt employees from the obligation to payment of the health service contribution under the general rules in the absence of their wages because of the present situation for the duration of the epidemiological period. The employer exempt the employees from extra burden.

In addition to this, the legislator has also introduced an alleviation on the employer side, according to it the assessed and declared health service contribution mentioned above, shall be payed by the employer within 2 months after the end of the State of Emergency. The economy stagnates, the investments fail and the production is minimal for the duration of the State of Emergency. So the financial sources and liquidity of the employer are reduced to the minimal. The employer can easier gets over the income loss resulting from the current situation and he/she can optimize better his/her sources and income with this alleviation.

It is very important to note that these current special provisions mentioned above are valid only for the duration of the State of Emergency. These provisions shall be expired at the end of the State of Emergency and the general rules will be applicable to the parties.

Source of the picture: pexel.com

Measures in connection with the organizations of the sports events and sports training

Pursuant to the Government Decree No. 170/2020 (30 April) on the Sports Events and Sports Training from today (4 May 2020) (hereinafter: decree) which is published in the Hungarian Gazette Issue 96. Under the strict following of the provisions of that decree, the sports events and trainings can be held from this Monday.

The organizing of the sports events and trainings are permitted in the whole territory of Hungary by that decree. The sports events can be held in locked circumstances without spectators. The decree also permits the attendance in the sports events which organized by the sports club or the attendance in the trainings of amateur sports, the leisure sports and mass sports (grassroots sport).

Furthermore the decree states that its provisions shall be still applicable if the decrees on the curfew or on the defensive measures provides otherwise.

The horse racing also shall be considered a sports event under that decree.

The decree will enter into force on 4 May 2020.

That decree will be prolonged by the Government until the end of the pandemic period regulated by the Decree No. 40/2020 (11 March) on the Proclamation of the State of Emergency.

Source: pexels.com


The Government Decree No. 142/2020 (22 April) on the Applicable Labor Law Provisions during the Epidemic Situation (COVID-19) (hereinafter: Government Decree or Decree) was published in the Hungarian Gazette Issue Vol. 83. on 22 April 2020, Wednesday. The different labor law provisions are determined by the Government Decree for the duration of State of Emergency until its withdrawal taking into consideration the information contained the information brochure of the Federation International Football Association (FIFA).

The decree confer the right to the sports organizations included in the sports system of the Hungarian Football Association (MLSZ) to reduce in their unilaterally written legal statement the regular monthly wages of the athletes who perform their sporting activity in labor relationship (or personal service relationship) or those sports professionals wages who are employed in labor relationship or employment-related other relationship.

In case of personal service relationship, the remuneration can be reduced if the remuneration will be payed as wage cost according to the Accounting Act.

The rate of the monthly wage reducing may not exceed 70%.

The monthly wage reducing is valid for the duration of the State of Emergency.

The source of the picture is Adobe Stock.

The Government Decree also contains similar provisions to the relevant decision of the national sports trade union operating in team sports and not covered by the above regulations.

The Government Decree will enter into force the day after its proclamation. Under these provisions these regulations shall be applied in the sports labor relationship from this day.

The effect of this Government Decree is prolonged by the Government for the duration of the State of Emergency.

The Hungarian Gazette (Magyar Közlöny) issue Vol 83. is available in Hungarian only.

On 30 March 2020, the extraordinary judicial break which begun on 15 March 2020 was terminated by the Hungarian Government in its Government Decree No. 74/2020 (31 March) on the Particular Prevailing Procedural Measures during the Pandemic Period (hereinafter: Government Decree No. 74/2020 (31 March) or Government Decree). The Government Decree No. 74/2020 (31 March) entered into force on its effective day at 3 o’clock p.m. This Government Decree will remain in effect during the pandemic period and until the State of Emergency is ended. The pandemic measures also shall be followed after the termination of the extraordinary judicial break.

Regarding to the procedural acts, the provisions contained by the Government Decree must be followed. The entry to the court building shall be forbidden for the client unless  the requirements which are contained by the OBHE Resolution No. 47.SZ/2020 (1 April) (hereinafter: VOH) on the Order of Use of the Court Buildings point 4. prescribes it during the time of the procedural act. [OBHE Resolution No. 49.SZ/2020 (3 April) on the Regulation of the Order of Stay in the Court Buildings during Pandemic Period]

The Government Decree contains lots of procedural measures. These article contains most important measures regarding to the civil litigious and non litigious procedures only, while the measures in connection with the administrative and criminal procedures will be discussed in an another article.

Prevailing particular procedural measures during the period of State of Emergency

Measures in connection with the civil litigious and non litigious procedures

During the period of the State of Emergency the provisions of the Act III of 1952 on the  Code of Civil Procedure (hereinafter: former CCP) and the Act CXXX of 2016 on the Code of Civil Procedure (hereinafter: CCP) shall be applied with the discrepancy contained in the Government Decree.

The continuation of the time limit is not affected by the State of Emergency, except the Government Decree dispose differently.

In the civil procedures under the effect of the CCP, the case initiation shall be conducted instead of the case initiation hearing. If it necessary the court may summons the parties for submitting further written statements or calls on the lawyer and parties if their personal hearing is necessary. In connection with the above-mentioned facts, the court perform its activity in the manner contained by subsection 7 to terminate the case.

The above-mentioned provisions under this section must be applied to the actions of personal status.

In the civil procedures under the effect of the former CCP, the substantial hearing shall be conducted by means of electronically network or any other devices which are able to transfer picture, video and voice. If the conditions of this is not being ensured, instead of the conduct of the substantial hearing, the statement recorded at the hearing can be obtained by the court in written form or by means of device which can identify the personality and in the case of necessity it can be recorded. [Government Decree Sec. 21 (3)]

The court does not conduct case initiation hearing at the request of the parties. Before the termination of the case initiation hearing the court will inform the parties in advance and provides the opportunity to make their further written statements. The termination of the case initial hearing will be communicated to the parties in written form by the court. [Government Decree Sec. 21 (2)]

In the case of the necessity of the personal hearing, the statements shall be obtained in written form or by the means of devices which are able to identify personality and in the case of necessity it can be recorded. [Government Decree Sec. 21 (7)]

In litigation, there is an unlimited number of stay of proceedings at the request of the parties.

During the State of Emergency – with exceptions contained by the subsection 3 – there shall be no place for the procedural act to be conducted in a place which is subject to an epidemiological measure.

During the State of Emergency the party acts without counsel may submits the application, counterclaim, extension of the action or the offsetting without written standard form based on the particular law. [Government Decree Sec. 24]

If the application submitted by the party acting without counsel does not contains the compulsory content elements or the formal accessories, the court in its deficiency court ruling must indicates all of the deficiencies of the application and the court must communicates all of information in connection with the deficiencies replacement of the application. In case of the unsuccessful replacement there is a place for rejection.

During the State of Emergency the submissions can not be filed personally to the court administration office. The submissions can be placed in the locked collecting box at the entrance door of the court.

During the State of Emergency if there is a place for service by public notification in the civil proceeding, the procedure is interrupted until the termination of the reason of service by public notification or the termination of the State of Emergency.

The judgment will be delivered out of court hearing by the court. [Government Decree Sec. 28 (2)]

In the appealing and review proceedings a hearing can not be requested by the parties. [Government Decree Sec. 29 (1)]

If the time limit expires in the civil litigious and non litigious proceedings and in the period up to 15 days after the entry into force of Government Decree No. 45/2020 (14 March) and this Government Decree, the time limit shall be extended to 30 days after the entry into force of this Government Decree.

This Government Decree shall be applied in pending cases and non litigious proceedings.

Shortly summarize the aforementioned facts, the courts are operating continuously but the personal appearance is replaced by the literacy. It can be said that the litigation division is operating similarly as the non litigation division. These epidemiological measures are necessary because of the current pandemic situation in order to slow down the spread of the virus as effectively as possible and thus protect each other’s health. Therefore it is very important to follow the provisions of this Government Decree.

Information on the COVID-19 in connection with the personal data processing and the employment law

The source of the picture is: Hungarian Medical Chamber (MOK)

In the recent past days the Hungarian Government declared the State of Emergency in its Government Decree 40/2020 (III.11) on Declaring of the State of Emergency based on the Fundamental Law of Hungary Article 53 (1).

Parallel to the provisions of the Government Decree, some directions of the GDPR and the Hungarian Labor Code shall be followed by the employers. The SAMKÓ LEGAL set up a short information document about the relevant applicable provisions in connection with the epidemiological situation.

The short document will help to understand that how these provisions of the GDPR, Labor Code and the relevant other laws and decrees shall be applied by the employers and other parties of the employment relationship. The short information document of the SAMKÓ LEGAL is available at down below of the page in PDF format.

Budapest on 23rd March 2020

SAMKÓ LEGAL©


The Algopyrin and the substances of metamizole

On 19th February 2020 the National Institute of Pharmacy and Nutrition (OGYÉI) published on its webpage that the medicines of metamizole content will be issued without prescription by the doctors. The above-mentioned date before these medical substances were issued with prescriptions only by the doctors. The OGYÉI composed a list about those medicine substances which are exempt from the obligation of the issue of prescription.

Medical substances

According to the information of the OGYÉI, the applicant filed his/her application for review in connection with the issue of medicine substances of metamizole without prescription. The OGYÉI examined the application of review and the whole data relating to the case. It found that in the case of medical substances of metamizole content that the conditions are not met with those contents which are included the Decree of Ministry for Health (DMH) No. 52/2005 (18 NOV) on the Marketing of Medicines for Human Use. Therefore the classification of these medical substances were reclassified by the OGYÉI.

It means that it does not have to be claimed prescriptions for Algopyrin and those medical substances which contain metamizole. If you would like to more information about the aforementioned medical substances, please visit the website of OGYÉI at https://www.ogyei.gov.hu/main_page.

List of those medical substances which will be issued without prescriptions after the aforementioned date by pharmacy
ALGOPYRYN 500 mg pillsNot subject to prescription.
ALGOZONE 500 mg pillsNot subject to prescription.
FLAMBORIN 500 mg/ml drops for oral solutionNot subject to prescription.
METAPYRIN 500 mg film-coated pillsNot subject to prescription.
NODORYL FORTE 500 mg pillsNot subject to prescription.
PANALGORIN 500 mg pillsNot subject to prescription.
SUPPOSITORIUM ANALGETICUM FoNo VII. PARMANot subject to prescription.
SUPPOSITORIUM NORAMINOPHENAZONI 100 mg FoNo VII. PARMANot subject to prescription.
SUPPOSITORIUM NORAMINOPHENAZONI 200 mg FoNo VII. PARMANot subject to prescription.
TABLETTA ANALGETICA FoNo VII. PARMANot subject to prescription.

The content of this article also including the table above are derived from the webpage of the National Institute of Pharmacy and Nutrition (OGYÉI).

National Institute of Pharmacy and Nutrition (https://www.ogyei.gov.hu/main_page)

The source of this whole article is OGYÉI.


About the programme in short

The 83rd AIPS Congress will be held on 3rd to 7th February 2020 in Budapest at the Hotel Corinthia. Hungary got the fourth opportunity to organize this prominent event. Before this ceremony, Hungary has organized three times the AIPS Annual Congress. The first time was in 1965, the second time was in 1992 and the third time was in 1999. Budapest was in great contest with two more competitor, Rome and Madrid.

The Hungarian Sports Journalists’ Association (MSÚSZ) took big efforts in the previous half a year to organize the AIPS event in Budapest for the fourth time told Dr. Zsuzsa Csisztu vice-president of MSÚSZ. Monday is the opening day. The Congress offer diverse and rich professional programmes approximately to 300 sports journalist of the world.

Yesterday was the first event day. On Monday evening, the AIPS Media Award was awarded to the winners for the second times and in 11 category will be awarded the competitors. One of the most noted guest was Gianni Infantino, the president of the FIFA (Federal Internationale de Football Association or International Federation of Association Football) who took part on a podium speech before the great ceremony.

www.sportujsagirok.hu

The two host were Jonathan Edwards, British former olympic winner athlete and dr. Zsuzsa Csisztu, vice-president of MSÚSZ. The following represented Hungary at the event: Krisztián Kulcsár, the president of Hungarian Olympic Committee (MOB), Tünde Szabó State Secretary for Sport, Ministry of Human Capacities (EMMI), Sándor Csányi, the president of the Hungarian Football Association (MLSZ), László Szabó, the president of the Hungarian Paralympic Committee (MPB), Dániel Gyurta, former olympic winner, member of International Olympic Committee (IOC) and MOB, Zoltán Novotny, sports journalists, dr. Zsuzsa Csisztu with György Szöllősi, the president of MSÚSZ and more other notable persons.

On the further days of the event will be also home to the panel discussion of the role of the women in the sport and the sport media. Donna de Varona famous swimmer and Tímea Babos Grand Slam team winner in pair, famous tennis player.

If you would like you read more information about this ocassion, please visit the website of MSÚSZ at www.sportujsagirok.hu.

The pictures and whole gallery were published by Hungarian Sports Journalists’ Association (MSÚSZ) and the sources of the all pictures is also MSÚSZ.

Source of the pictures is Hungarian Sports Journalists’ Association (MSÚSZ).


Rules of paying Health Service Contributions

In Hungary, the Social Security is a social pooling system covering the citizens of Hungary and other natural persons working in Hungary. It means that every single person who works in Hungary has to pay for taking benefits. Pursuant to the Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pension and the Funding for These Services (hereinafter: Social Security Benefits Act or SPA) the participation in the social security system is mandatory in accordance with this law.

The article is about the inpayment of the health service contribution and what kind of documents are need to the submission via of the system of the National Tax and Customs Administration (NTCA) to take the health care benefits. At the end of the article will be listed the relevant laws and decrees.

Who is entitled to benefits?

In Hungary the mandatory pay contribution is the basis of the right to benefits. The law determines that who is eligible to take those benefits which are comprised by the law. These persons are the following:

  • Insured persons [SPA Sec. 5 (1) points a)-k)];
  • Entitlements persons (e.g.: pensioner, students, scholars of schools and education institutions, mental patients and patients treated for pathological addiction in an institution of social therapy, etc.) [SPA Sec. 15 (1) and (2) points a)-f)];
  • Persons liable to pay health service contributions in accordance with the SPA Sec. 39 (2) [SPA Sec. 16 (1) point r)];
  • Social Security Benefits Provided Under Agreement [ SPA Sec. 34 (1)-(15)].

Who has to pay for health service contribution?

The SPA determines that who is required to pay health service contributions. These person are the following:

  • Persons liable to pay health service contributions in accordance with the SPA Sec. 39 (2);
  • Private Entrepreneurs engaged in auxiliary activities;
  • Business Partnerships on any Business partner who is engaged in auxiliary activities;
  • Social Cooperatives shall pay health services contributions on behalf of their members performing work within a member’s work relationship [SPA Sec. 18 (1) point c), Sec. 19 (4) and Sec. 39/B (1)]

Who is considered to be a resident in the view of social security? What conditions are need in additional to be eligible for health contribution services?

Pursuant to the SPA Sec. 4 (1) point u) resident shall mean the following:

  • Hungarian citizens who have their address in Hungary registered in accordance with Act LXVI of 1992 on Records of the Personal Data and Addresses of Citizens, persons who have been granted immigrant or permanent resident status and persons with refugee or subsidiary protection status,
  • persons falling within the scope of the Act on Admission and Residence of Persons with the Right of Free Movement and Residence (hereinafter referred to as “persons with the right of free movement and residence”), who exercise their right of free movement and the right of residence for a period of longer than three months in the territory of Hungary, provided that they have their address registered in accordance with the Act on Keeping Records on the Personal Data and Address of Citizens, and
  • stateless persons.

It is very important for the applicant to be eligible for one of the aforementioned requirements to submit his/her submitting form.

In addition to the above-mentioned conditions, the natural person shall have registered address in the territory of Hungary prior to admission for at least one year without any interruption or in the case of stateless persons who have a residence permit, a registered habitual residence provided for in the Act on the Admission and Residence of Third-Country Nationals. The said one-year period shall include a maximum period of ninety days, during which the resident person did not have a registered address in the territory of Hungary. The state tax authority, if it has no records concerning the said one-year period, shall contact the central body operating the register of personal data and address records of citizens, or the body operating the immigration register as relating to the habitual residence, to request information as to the home address of such resident person for the purpose of determining contribution payment liability. [SPA Sec. 39 (3)]

The provision means that the particular natural person has to be a residence place or habitual residence to be determining his/her contribution payment liability.

What is the time limit in connection with the health service contribution?

A) Beginnings of the contribution payment obligation

The obligation of health service contribution shall be applied for the period beginning on the day following the day of loss of eligibility for health services and ending on the first day of the relationship that is subject to compulsory insurance. [SPA Sec. 39/A (1)]

This provisions briefly means that the natural person (applicant) fell out of the sphere of the health services and compulsory insurance entitlements, and therefore he/she has to pay health service contributions until he/she will not regain the entitlement to the health services, compulsory insurance, or those entitlements which are listed in the law.

B) Reclaim of the health service contribution paid

If the obligation of joining to insurance scheme has generated later than the health service contribution payed, the contribution paid during the life of the insurance relationship may be refunded upon request with the certificate which was issued by the employer. This certificate shall be submitted to the National Tax and Customs Administration (NTCA). [SPA Sec. 39/A (2)]

C) Enter and cancel of the health service contribution

The health care contribution payer shall notify the NTCA regarding the commencement and termination of payment obligations within 15 days. Based on this notification, the NTCA shall prescribe the monthly payment obligations for the tax year on the tax account, keep records of the payments received, and shall cancel contribution payment obligations in the case provided for in this Act or in another act. The NTCA also shall issue a tax identification code to the contribution payer who does not have one. [SPA Sec. 45/A (1)]

The contribution payer shall not be required to notify the termination of payment obligations of health service contribution (see below to the next point), if this payment obligation is terminated by entering into the insurance relationship and that was notified to the NTCA in accordance with the RTA. The national tax authority shall ex officio inform the contribution payer in connection with termination of his/her obligation to pay health service contribution. [SPA Sec. 45/A (2)]

So this provisions mean that the contribution payer has 15 day to notify (submit his/her form) the national tax and customs authority about his/her obligation of health service contribution. This is the same situation when his/her obligation of health service contribution is terminated. The Subsection (2) also describes that if the contribution payer enter into the insurance relationship, the authority will automatically inform the contribution payer, if it happens in the way as the RTA prescribe it. For instance: the employer will notify the authority about the commencement of the insurance relationship.

Relying on the notification regarding to the termination of the obligation of the health service contribution, which was sent to the national tax and customs authority, the tax authority shall supply data concerning the ceased obligation to pay health service contribution within 10 days by way of electronic means to the Health Insurance Fund. It will happen when the contribution payer notify the authority about the commencement of entering into the relationship that is subject to compulsory insurance. [SPA Sec. 45/A (2)]

D) Passive eligibility period (suspended period)

After the termination of the relationship that subject to compulsory insurance, the passive period eligibility is behooved to the insured person for a while. These conditions are regulated by the Act LXXXIII of 1997 on the Services of the Compulsory Health Insurance System (hereinafter: HIA) Sec. 29 (9).

According to the HIA Sec. 29 (9) the entitlement of a resident person provided for in the SPA to health care services in the following time periods:

a) shall remain in effect for a period of 45 days, if the eligibility criteria was satisfied without any interruption for a period of at least 45 days before the time of termination,

b) if the period of existence of the eligibility criteria was less than 45 days, entitlement to healthcare services shall be extended by that time,

c) shall remain in effect for a period of 45 days, if the eligibility criteria previous to the eligibility criteria that was terminated was satisfied without any interruption for a period of over 45 days, and the eligibility criteria that was last terminated did not prevail for a period of 45 days, however, the period between the existence of the two eligibility criteria was less than 30 days.

This provision means briefly that in spite of the ceasing of the insurance relationship of the insured person he/she will entitle to take health care services for 45 days. During this time the social security relationship shall be settled by the insured person.

Who has to pay the health service contribution?

Pursuant to the law any resident person who is not insured and is not entitled to receive health services shall be required to pay health services contributions. [SPA Sec. 39 (2)]

How much HUF health service contribution shall be paid in 2020?

THE TOTAL AMOUNT OF HEALTH SERVICE CONTRIBUTION THE DAILY AMOUNT OF HEALTH SERVICE CONTRIBUTION
7710 HUF/MONTH 257 HUF/DAY
[SPA Sec. 19 (4)]

Time period for payment of Health Service Contribution

The health service contribution shall be paid by the contribution payer: 12th of each month.

Right to Health Care Service

To be eligible for health care service, it must be comply to the particular provision of Act III of 1993 on Social Administration and the Social Service (SASA).

Pursuant to the SASA Sec. 54 (1) the district office determines the social need for the purpose of health care service to that person:

  1. in whose family, the monthly income for one person is 120% of the minimum amount of the old age pension;
  2. who lives alone and his/her income is 150% of the minimum amount of the old age pension and his/her family has no assets.

The official certification of the social need (aka. certification) is issued by the district office. The expiration period of the certification is 1 year. The certification contain the name, the address, in the case of stateless person holding habitual license, the habitual residence, social security identification code of the person in need, the fact of the social need (indigence) and expiration of the certification.

If the aforementioned conditions are still met, the certificate can be reissued. The certificate testify the social need from the date of the submission of the application. The district office keeps record about the persons in need and pursuant the separate law notify the NEAK (National Health Insurance Fund of Hungary aka. NEAK).

Briefly, pursuant to the SASA the eligibility for health care services are benefits which are belonged to the benefits in kind. This benefit provides the free use of the health care services without paying the health service contribution.

What kind of documents are need for submission?

The following documents are needed for submission:

  • identification card
  • residence card
  • passport
  • tax ID card
  • social security ID card
  • power of attorney
  • submission form 20T1011 (it shall be submitted to the national tax authority)

What changes can be waited for in the near future?

The new social security act (Act CXXII of 2019 on the Eligibility for Social Security Benefits and Private Pension) will enter into force on 1st July 2020. The changes will be described later in this year.

Who conducts the social security system?

The social security system is a multistage system. It is divided by two parts: for health insurance and the pension insurance. These parts create the whole system. This article only deals with the issues of the health insurance.

The issues of the health care and health insurance system are belonged under the control of National Health Insurance Found of Hungary (NEAK).

In countryside, the issues of the health insurances are performed by the district office by the country seat.

In Budapest, the same duties are performed by Budapest Government Office XIII. District Office (together: District Office of the Country). [Government Decree 386/2016 (2 Dec) on the Bodies of Health Insurance Sec. 1 (1) points a), b), c)]

The relevant laws and decrees

Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pension and the Funding for These Services

Act LXXXIII of 1997 on the Services of the Compulsory Health Insurance System

Act III of 1993 on Social Administration and the Social Service

Act LXVI of 1992 on Records of the Personal Data and Addresses of Citizens

Government Decree 168/1997 (X. 6.) on implementation of Act LXXXI of 1997 on Social Security Pension Benefits

Government Decree 386/2016 (2 Dec) on the Bodies of Health Insurance

Zoltán Ferenc Samkó J.D.
Health and Sports Lawyer