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Changes regarding income certificate and social insurance booklet in Hungary

Before changes employer had to issue income certificate in the case of employment termination.

From now - due to changes - employer has to issue that just in case the employee requests it in writing. In this case employer has to issue a certificate about the request, too.

Unlike the above, if insured person claims maternity-confinement allowance or child care benefit after a child born before 11st of May, 2014, she needs income certificate because her allowances will be based on that. So, in this case employer has to issue income certificate for the period between the first day of previous year and the day of claim.

This is essential because there is a transitional provision among changing regulation which orders that benefits have to be calculated both according to former and recent regulation in the case of a woman, whose child will be born before 11st of May, 2014. This woman will be entitled to the higher amount of calculated allowances.

There is another new rule in the case of income certificate, as well. If replacement is needed in connection with income certificate, and replacement process is inefficient, employers have to request data of income from Hungarian Tax Authority.

We also would like to call your attention to new regulations regarding social insurance booklet.

In the case of a new employment, employee has to give his social insurance booklet to his employer. If he doesn’t do that, employer has to call his attention to have it from his former employer. If he doesn’t do that either, employer has to get him to make a statement about that. The call and this statement need to be kept for five years! After that employer has to issue a new social insurance booklet.

If employment is terminated, employer has to register the termination in social insurance booklet and mark “income certificate issued” or “income certificate not claimed”.

It is important to note that in the course of judging allowances like sick pay, maternity-confinement allowance, child care benefit, data of social insurance booklet are taken into consideration for setting of insurance times.

If there is no space left in social insurance booklet, it is needed to issue a new one and attaching the former ones which include insurance times within two years.

The social insurance booklet is important not only in the case of health care benefits, but it is also taken into consideration when insurance time is calculated by pension insurance authorities.

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