Hungary Statutory and Private Employee Benefits, 2023 Update

Hungary Statutory and Private Employee Benefits Report Overview

The Hungarian social security system is based on the fundamental principle of solidarity, and both employers and employees contribute. Self-employed persons also make full contributions and are entitled to receive benefits under the system. In addition to the social security benefits, several benefits such as a supplementary pension, healthcare benefit, unemployment benefit, disability, and death benefits are provided by private employers in Hungary.

The Hungary employee benefits market research report provides in-depth industry analysis, information, and insights into employee benefits in Hungary, including an overview of the state and compulsory benefits in Hungary, detailed information about the private benefits in Hungary, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in Hungary.

Regulations Guiding Employee Benefits Market in Hungary

Some of the key regulations guiding the employee benefits market in Hungary are Persons Entitled to Social Security Benefits and Private Benefits, 1997, Social Insurance Pension, 1997, Compulsory Health Insurance, 1997, Family Support, 1998, and Protection of Children and the Administration of Guardianship, 1997 among others.

Hungary Employee Benefits Market Segmentation by State and Compulsory Benefits

The key state and compulsory benefits offered by employers in Hungary are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Medical Benefits: The Hungarian government provides full medical cover to domestic residents, foreign residents (working or studying), and refugees. All domestic residents have access to healthcare services irrespective of the employment period. A health insurance card and a unique number issued by the OEP are required to access the benefits. Persons not insured or not entitled to healthcare can enter contractual arrangements with the National Health Insurance Fund (NEAK) for healthcare services.

Short-Term Sickness Benefits: Short-term sickness benefits are granted to insured employees and self-employed persons and mothers caring for a sick child. They are granted in the form of absence fees and sickness cash benefits. Voluntary insurance is possible for those not mandatorily insured.

Hungary Employee Benefits Market Segmentation by Private Benefits

The key private benefits offered by employers in Hungary are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Death Benefits: Employers provide death benefits to employees through group life insurance policies or collective group life, health, and accident insurance policies. Few plans require the annual renewal of group life insurance. In case of the death of the insured, the survivors are entitled to the full sum assured. For death in service, the amount can also be a multiple of annual earnings.

Medical Benefits: Hungary has a compulsory health care system and coverage is universal. However, employers provide additional medical benefits through group health insurance schemes. Most of the population opted for voluntary health insurance to avail of dental and physiotherapy benefits not covered under the universal scheme. The benefits are valid across the country and the world on a 24-hour basis, except for occupational accident insurance, which is valid for workplace accidents and any accident during transit to and from work.

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Hungary Statutory and Private Employee Benefits Market Report Overview

Scope

This report provides a detailed analysis of employee benefits in Hungary –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, Long-term care benefits, leaves and holidays, and private benefits.
• It highlights the economic and regulatory situations relating to employee benefits in Hungary.

Key Highlights

• The Ministry for National Economy (Nemzetgazdasági Minisztérium), National Health Insurance Fund (Országos Egészségbiztosítási Pénztár), Hungarian State Treasury (Magyar Államkincstár), Central Administration of National Pension Insurance (Országos Nyugdíjbiztosítási Főigazgatóság – ONYF) and National Tax and Customs Administration (Nemzeti Adó és Vámhivatal) are responsible for the functioning of the overall social security system.

• A person’s national insurance contribution is determined based on their income.

• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.

• In Hungary, employers provide voluntary retirement benefits to their employees through voluntary pension funds, pension insurance, or retirement saving accounts.

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country.
• Assess employee benefits of the market, including state and compulsory benefits and private benefits.
• Gain insights into the key employee benefit schemes offered by private employers in the country.
• Gain insights into key organizations governing the employee benefits market, and their impact on companies.