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Publikációk:

Important changes in the determination of cash benefits

06 September 2015

For the determination of cash benefits, first of all we shall define ‘reference period’. If the insurance cover is continual, reference period shall take from the first day of the insurance relationship existing on the initial day of eligibility to the last day of the third month prior to the initial day of eligibility, taking into account, that the first day of this period cannot be earlier than the first day of the calendar year prior to the initial day of eligibility. The change is that the income, which can be taken into account when determining the amount of the cash benefit, shall be received for the last day of the third month prior to the initial day of eligibility at the latest, instead of the day prior to the day of eligibility.

 

Benefits shall be determined based on the income reached in the insurance relationship existing on the initial day of eligibility by the National Health Insurance Fund and by the social security payment office. With effect of the 1st of January 2015 only the income, comprising the base for healthcare contribution, which was included in the tax- and contribution declarations submitted to the Hungarian Tax Authority, shall be taken into account (calculation period).

The amount of the benefit shall be determined based on the income which was included in the declarations.

If there was no tax- and contribution declaration submitted, no benefit shall be determined.

With effect of the 1st of January 2015, there is no difference between the recurred income and the non-recurred income. The date of payment shall be taken into consideration regardless of the period (days) the non-recurred income was paid for.

 

If the child was born prior to the 1st of January 2015, the pregnancy-maternity benefits and the child-care benefits shall continue to be determined by two calculation methods and the more appropriate amount shall be paid.

 

No child-care benefit shall be paid if the person eligible is engaged in paid employment of any type before the child’s first birthday - apart from any remuneration paid for the activities of registered foster carers -, or who is engaged in the pursuit of any gainful activity. It is a change from this year that no child-care benefit shall be paid if the person eligible receives any remuneration paid for the use of a copyrighted work, as this type of activity shall be considered a gainful activity.

 

The calculation methods of sick-pay, pregnancy-maternity benefits and child-care benefits changed by comparison with previous years. The following calculation methods shall apply:

  1. The amount of the cash benefit shall be established based on the income acquired during one hundred and eighty calendar days falling chronologically the closest to the last day of the period beginning on the first day of the calendar year immediately preceding the initial day of eligibility for cash benefits and ending on the last day of the third month immediately preceding the initial day of eligibility, on which days the insured person had any income. If the continual insurance cover is interrupted, the amount of cash benefits may not be established based on income earned before the interruption.
  2. If the insured person has no income for one hundred and eighty calendar days, but has income for one hundred and twenty calendar days during the period referred to in Subsection (1) and before the first day of eligibility for cash benefit he/she has continual insurance cover for at least one hundred and eighty days, the calendar day average of cash benefit shall be calculated based on the actual income acquired during one hundred and twenty days.
  3. If the insured person has no income for one hundred and twenty calendar days during the period referred to in Subsection (1), but before the first day of eligibility for cash benefit he/she has continual insurance cover for at least one hundred and eighty days, the amount of cash benefit shall be calculated based on the actual income, or failing this, on the contractual income.
  4. If before the first day of eligibility for cash benefit he/she has no continual insurance cover for at least one hundred and eighty days, the amount of cash benefit shall be calculated based on the prevailing minimum wage in effect on the initial day of eligibility, except if his/her contractual or actual income fails to reach the prevailing minimum wage. In that case the amount of cash benefit shall be calculated based on the actual income, or failing this, on the contractual income.
  5. If the actual income is received for less than thirty calendar days, the amount of cash benefits shall be calculated based on the contractual income, received for the month when the eligibility begins.

 

If the insured person has no income for one hundred and eighty days during the period beginning on the last day of the third month immediately preceding the initial day of eligibility for sick-pay benefits and ending on the first day of the calendar year immediately preceding the initial day of eligibility for sick-pay benefits, for reasons of receiving sick-pay benefits, benefits for accident-related injuries, pregnancy-maternity benefits, child-care benefits for at least one hundred and eighty days - except where benefits are provided under special consideration -, the amount of cash benefit for a calendar day shall be calculated based on the amount underlying the benefits previously paid, if this is higher than the contractual income.

Contractual income shall mean absentee fee and/or the monthly amount of the remuneration in the case of sickness; minimum wage in effect on the first day of eligibility multiplied by one and a half in the case of private entrepreneurs and business partners; minimum wage in effect on the first day of eligibility in the case of persons performing work for remuneration in any work-related relationship if the insurance relationship does not exceed thirty calendar days; the contractual remuneration which is the base of the legal relationship in other cases.

 

Wage shall mean the income, comprising the base for healthcare contribution provided in cash, received for personal work under insurance relationship.

 

For the determination of the maximum amounts of the cash benefits, prevailing minimum wage shall be taken into account. Based on this fact the daily amount of sick-pay may not exceed 7 000 HUF/day and child-care benefits shall not exceed 147 000 HUF/month in year 2015.

 

In the previous years the base of the benefits for accident-related injuries was the income, received for the month prior to the month of eligibility. From 2015 the amount of the benefits for accident-related injuries shall be established based on the income acquired during one hundred and eighty calendar days falling chronologically the closest to the last day of the period beginning on the first day of the calendar year immediately preceding the initial day of eligibility for cash benefits and ending on the last day of the third month immediately preceding the initial day of eligibility, on which days the insured person had any income, if the insurance cover is continual. If the insured person has no income for one hundred and eighty calendar days in the period above, the amount of benefits for accident-related injuries shall be calculated based on the actual income, or failing this, on contractual income.

 

Other changes

 

  • In the case of concurrent insurance relationships, child-care benefits shall be determined by the National Health Insurance Fund relevant based on the location of the employer.
  • Persons performing work for remuneration in any work-related relationship and persons being elected representatives shall considered to be insured, if the income from these activities comprising part of the contribution base for the month reaches thirty per cent of the prevailing minimum wage (31 500 HUF/month), or one-thirtieth of the said minimum wage for each calendar day (1 050 HUF/day).
  • In order to avoid paying contributions double foreign employees, if work is performed in Hungary within the framework of posting, shall not considered to be insured. The period of the framework of posting shall not exceed twenty-four months. If work is performed within the framework of posting, temporary assignment or hiring-out of workers, the period of two years shall be shall be construed to commence on 1st July 2013 instead of the 1st January 2013 which means that the insurance obligation (insurance relationship) shall apply from 1st July 2015 at the earliest.