The legal provisions regarding the payment of social security contributions (tb-járulék) and social contribution tax (szocho) for third-country nationals employed in Hungary contain special rules. Third countries are defined as those that are not part of the European Economic Area and do not have a social security agreement with Hungary. Examples of such countries include China, Nepal, Malaysia, the Philippines, New Zealand, Afghanistan, Pakistan, and many others worldwide.
Special Rules for Third-Country Workers
Act CXXII of 2019 (Tbj.) and Act LII of 2018 (szochotörvény) specifically regulate the employment of third-country nationals in Hungary. The laws state that a third-country national will not be insured in Hungary if:
- They are employed by a foreign employer not registered under Hungarian law,
- The work is performed under a posting, secondment, or temporary agency work arrangement,
- The duration of the work does not exceed two years.
This rule can be reapplied to a new posting only if at least three years have passed since the end of the previous work assignment.
Certifications and Exemptions
Third-country social insurance coverage must be verified with a document issued by the competent authority of the third country, translated into Hungarian, and notarized by a Hungarian notary. With this certification, the worker can be exempt from paying both social security contributions and social contribution tax.
Healthcare Service Contribution Obligation
Third-country nationals may also be required to pay healthcare service contributions in Hungary if they:
- Are not insured,
- Are not entitled to healthcare services on any other grounds.
The monthly amount of the contribution is 11,300 HUF, and the obligation to pay this contribution requires that the individual has had a registered residence in Hungary for at least one year.
Our take
The regulation of third-country nationals’ employment in Hungary includes several specific provisions aimed at clarifying the obligations and exemptions regarding the payment of social security contributions and social contribution tax. These rules ensure that third-country workers can work legally and transparently in Hungary while providing clear guidelines for employers to comply with employment conditions.