EFFECTIVE DATE OF SOCIAL SECURITY AGREEMENT BETWEEN TURKEY AND HUNGARY

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Effective date of Social Security Agreement between Turkey and Hungary is determined as 1st April 2018.

As we informed you before, Social Security Agreement between Turkey and Hungary signed in Budapest on 24 February 2015 had been accepted in Parliament and the related Law No. 6961 had been published in the Official Gazette on 3 April 2017.

However, there was some confusion about its enactment date. Now with the Government Decree 2018/11543, issued on 5 June 2018, the effective date of above said agreement is announced as 1 April 2018.

SCOPE OF THE AGREEMENT

This agreement will apply to following legislation:

In relation to Turkey;

  • Invalidity, old age, survivors insurance
  • Work accidents and occupational diseases
  •  Sickness and maternity insurance in the scope of general health insurance
  • Unemployment insurance for employees working under an employment contract.

In relation to Hungary;

  • Insurance obligation and payment of social security contributions covering social insurance benefits; pension, health insurance and unemployment
  • Social insurance pension benefits
  • Health insurance benefits
  • Benefits for the persons whose working capacity is changed.

OUTLINES OF THE AGREEMENT

  • Equal treatment: Persons in the scope of this agreement will, with respect to social security, have the same rights and obligations, as provided or stipulated for a citizen of the contracting country
  •  As Regard to entitlement to social security benefits (retirement etc.) provided by contracting parties, the length of services acquired in both country will be combined
  • Healthcare benefits for insured and their families will be safeguarded by legislation of both countries
  • If a person transfers his residence to other country while receiving income, he will continue to receive this income in the country to which  he transferred his residence
  • Benefits in the scope of temporary incapacity will be provided by both contracting parties.

POSTING – SECONDMENT

Secondment/posting period is 24 calendar months.

  • Employed person: In case an employee is send by the employers to work temporarily on behalf of this employer in the other contracting country, that employee will continue to be subject to the legislation of sending country, on condition that posting period doesn’t exceed 24 calendar months and the posting doesn’t aimed at replacing a previously posted person.
  • Self-employed: In case a self-employed person temporarily transfers his business to other contracting country he will be subject to legislation of the first country, on condition that self-employed activity doesn’t exceed 24 calendar months.

In the above cases, 24 months period may be extended for once up to maximum 60 months by the mutual request of employee and employer, or by the personal request of self-employed person

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