Information for Employees on Unpaid Leave

Employees may hand in a request for an unpaid leave in written to HRO at least 15 days in advance – possibly attaching the approval of the immediate supervisor. Unpaid leaves exceeding 2 weeks must be approved by the Provost/Academic Pro-Rector in case of academic staff and by the COO in case of administrative staff members for approval.

Please note that being on unpaid leave will affect your health Insurance and your Pension at the same time. As social security contributions (Health and Pension) are deducted and paid by your employer from your gross salary, the payment is ceased while you are on unpaid leave.

 

I. Health Insurance

Being on unpaid leave for more than 30 calendar days means that your continuous Health Insurance will be discontinued. This will affect your eligibility for Cash Benefits (sick leave, pregnancy-maternity and child care benefits) after your return.

During your unpaid leave (according to Act LXXX of 1997) your insurance is suspended in Hungary by the National Health Insurance Fund, so if you have been registered at least for one year in Hungary (you have a valid plastic address card) you are obliged to pay a monthly Health Services Contribution for the period of your unpaid leave, unless you can prove that you are insured in an other EEA country. The amount of this payment is 7,110 HUF in 2017 – however, the amount may change each year.

By paying Health Services Contribution you are entitled to use only in kind Health Services in Hungary. You will not be entitled for cash benefits, namely, sick pay, pregnancy-maternity and child care benefits. When continuously paying Health Services Contribution, you may also apply for European Health Insurance Card which allows you to use necessary medical services within EEA countries.

How to proceed:

Both the start date and the end date of your unpaid leave must be reported to the Hungarian Tax Office (NAV) by you on a special form called 17T1011. The form can be downloaded from here.

The signed forms must be sent to NAV within 15 days from the first day of your unpaid leave.

e.g.: if you are on unpaid leave between October 1, 2017 – October 31, 2017 you have to report it to the Hungarian TAX office by October 15, 2017.

 

How to Pay Health Services Contribution:

Health Services Contribution must be paid monthly to the following bank account:

Name of the Account: NAV Egészségbiztosítási Alapot megillető bevételek beszedési számla

Account Number: 10032000-06056229

Code of contribution:124

Please note that it is important to indicate your TAX number, Code of contribution and the period of your payment in your transfer note.

The amount of the monthly contribution must be transferred by the 12th day of the following month the latest.

e.g.: if you are on unpaid leave between October 1, 2017 – October 31, 2017 you have to pay 7,110 HUF Health Services Contribution by November 12, 2017 the latest .

Social Security Officer may help you regarding the mentioned form 17T1011 upon your request (Eva Tornyos, ext.:3133, tornyose@ceu.hu).

 

II. Pension

During your unpaid leave your continuous Health and Pension Insurance will be disconnected. If you are a permanent resident (you have a valid plastic address card ) in Hungary you may enter into an agreement with The Social Security Office for the purpose of obtaining Pension Service time and for the purpose of eligibility for receiving Pension Benefits.

The monthly contribution base will be defined in the agreement by the individual; however it can not be lower than the prevailing minimum wage (127,500 HUF in 2017) in affect. In case you have signed the agreement the Pension Contribution is 34% of the contribution base.

e.g.: if you are on unpaid leave between October 1, 2017 – October 31, 2017 you entered into an agreement for Pension service time and benefit and your contribution base is the minimum wage ( 127,500 HUF) you have to pay 43,350 HUF Pension Contribution according to the Agreement.

Please note that an Agreement for Pension Service time and Benefits can not be signed retroactively.

Social Security Officer may provide you with application forms upon your request (Eva Tornyos, ext.:3133, tornyose@ceu.hu).