The document discusses applicable social security legislation regarding posting of workers, self-employed persons, and pursuit of activities in multiple EU member states. It examines case studies on applicable legislation for flat-rate health contributions and employment on vessels. Future challenges include modifying EU regulations to introduce a "home base" concept for flying personnel and changing rules for activities in multiple states.

1. National Health Insurance Fund Hungary
The coordination of social security in Europe
Applicable legislation
Dr. Sándor Hódi
National Health
Insurance Fund Hungary
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2. National Health Insurance Fund Hungary
Outline
1. Facts
2. Questions and problems concerning applicable
legislation – Case studies
3. Future challenges
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3. 1. Facts – Posting
1. Facts
Posting of workers
Application of Hungarian legislation in case of posting of
workers:
- conditions of Section No. 1 of Art. 12 of BR must be
fulfilled;
- the posting employer carries out substantial activities in
Hungary:
- 25% of its staff is employed in Hungary and
- 25% of its total turnover arises from activities
pursued in Hungary.
- If the employer cannot fulfill the above two criteria, the
substantial activity is regarded as fulfilled, if the
employer has an ownership stake of at least 25% in an
undertaking, which fulfills the above criteria.
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4. 1. Facts – Posting
Hungarian law is not applicable:
If the employer:
- is a company under registration;
- employs persons in Hungary during the period of posting who are involved only in
the control and administration of the company, so no effective activity is carried
out in Hungary;
- the activity pursued in the Member State of posting is not identical with the
activity pursued in the Member State of employment;
If the employed person:
- does not have an insurance period of at least 30 days
controversial issue
- is posted to replace another person;
- is recruited for the purpose to be sent to another Member State by the undertaking
in the Member State of employment;
- had been posted for a period of 12 months or 24 months and a period of at least 60
days did not expire since the date of expiry of the previous posting;
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5. 1. Facts – Posting
1. Facts
Posting of self-employed persons
Application of Hungarian legislation in case of
posting of self-employed persons:
- conditions of Section No. 2 of Art. 12. must be
fulfilled;
- no further national criteria determined;
Interruption of the period of posting:
- If the posting interrupts for a period less than 2
months it is regarded to be continuous and Hungarian
legislation is still applicable.
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6. 1. Facts – Pursuit of activities in two or more
Member States
1. Facts
Pursuit of activities in two or more Member States
Application of Hungarian legislation, as the law of
residence (Point a) of Section No. 1 of Art. 13 BR)
Employed persons:
- the remuneration arising from the activity pursued in
Hungary reaches 25% of the total remuneration of the
employed person or the working hours relating to the
activity pursued in Hungary reach 25% of the total
working hours of the employed person.
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7. 1. Facts – Pursuit of activities in two or more
Member States
Self employed persons:
- the income arising from his activity pursued in Hungary
reaches 25% of the total income of the self- employed
person.
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8. 2. Questions and problems concerning applicable
legislation – Case No. 1
Statement of facts: The Hungarian legislation obliges
people with residence in Hungary and not entitled
to benefits in kind to pay a monthly contribution in
amount of 5100 HUF/month. People, who pursue
an activity in another Member State, whatever they
are employed or self-employed, apply for an A1
form for pursuit of activities in two or more
Member States.
Decision of the authorities: the application will be
rejected.
Reasoning: The payment of the flat-rate contribution
entitles only to benefits in kind. Thus, it is not an
insurance period and does not entitle to cash
benefits. Only EHIC can be issued, no other forms.
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9. 2. Questions and problems concerning applicable
legislation – Case No. 2
Statement of facts: A Hungarian national with residence
in Hungary concludes an employment contract with
an undertaking seated in Cyprus (hereinafter: the
employer). The work stipulated in the contract is a
typical employment on board of a vessel at sea, but no
activity is pursued on the territory of Hungary. The
remuneration is paid by an undertaking seated in
another Member State, which is not precisely defined.
There is no reference to the flag of the vessel.
Question: Which legislation is applicable to the social
situation of the employed person?
Problem: No reference to the flag of the vessel and to the
Member State, in which the undertaking paying the
remuneration is seated . Thus, it results more possible
solutions.
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10. 2. Questions and problems concerning applicable
legislation – Case No. 2
Solution No. 1: Assumed the employed person pursues the
activity on board of a vessel flying the flag of Cyprus
and the remuneration is paid by an undertaking seated
in Cyprus, the employed person is subject to Cyprian
legislation.
Reasoning: The employer is seated in Cyprus and the
employed person pursues the activity on board of a
vessel flying the flag of an EU Member State.
„…an activity as an employed or self-employed
person normally pursued on board a vessel at sea
flying the flag of a Member State shall be deemed to
be an activity pursued in the said Member State…”
(Point a) of Section No. 3 of Art. 11 of BR)
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11. 2. Questions and problems concerning applicable
legislation – Case No. 2
Solution No. 2: Supposed the employed person pursues the
activity on board of a vessel flying the flag of an EU Member
State and is remunerated by an undertaking seated in another
Member State, the employed person is subject to the
legislation of the Member State, in which the undertaking
paying the remuneration has its registered office or place of
business, if he has his residence in this Member State. The
only Member State may be Hungary, because the employed
person has its residence in Hungary.
„…a person employed on board a vessel flying a flag
of a Member State and remunerated for such activity by an
undertaking or a person whose registered office or place of
business is in another Member State shall be subject to the
legislation of the latter Member State if he resides in that
State…” (Point a) of Section No. 3 of Art. 11 of BR)
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12. 2. Questions and problems concerning applicable
legislation – Case No. 2
Solution No. 3: If the residence of the employed person is
not in the Member State, in which the undertaking
paying the remuneration has its registered office, then
the lex bandi is applicable (the legislation of the
Member State the flag of which the vessel is flying).
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13. 2. Questions and problems concerning applicable
legislation – Case No. 2
Solution No. 4: Supposed the flag of the vessel is one of
the Member States still to be subject to Regulation
1408/71 (Switzerland, Liechtenstein, Norway and
Iceland), then the lex bandi is applicable.
„…a person employed on board a vessel flying the
flag of a Member State shall be subject to the
legislation of the Member State…” (Point c) of
Section 2 of Art. 13 of Regulation 1408/71)
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14. 2. Questions and problems concerning applicable
legislation – Case No. 2
Solution No. 5: If the vessel is flying the flag of a non-
EEC Member State, then rules of private international
law are applicable, thus the lex bandi.
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15. 3. Challenges – The cross-border health care
directive
3. Challenges
Modification of Regulations 883/2004/EC
and 987/2009/EC
- introduction of the concept of „home base” for flying
personnel
- modification of the rules on applicable legislation in case
of pursuit of activities in two or more Member States;
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16. National Health Insurance Fund Hungary
Thank You for Your Attention
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