Information on insurance obligations and the applicable laws in the Member States of the European Economic Area (EEA)
Persons falling under the scope of Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems must be insured in only one Member State, and their obligation to pay contributions in only one Member State. The insurance obligation of EEA citizens is governed by the laws of the Member States where individuals pursue their professional activity.
Accordingly, the Member State of origin will issue a so-called ‘A1’ form for the duration of a posting to certify the social insurance jurisdiction of and payment of contributions in the Member State of origin.
‘Posting’ means that the employees continue to work on the instructions of their employer but in another Member State.
The Government Office will also issue an A1 form for cases where several Member States are involved in concurrent work, when it is previously established that the persons in question are subject to Hungarian law.
The purpose of the A1 form is to verify that the persons involved will continue to be insured in Hungary during the period of work (posting, concurrent work activity) abroad, and that they do not have any insurance or contribution-payment obligation.
On submission of all the required documents, the form will be issued within 8 days; if additional information is required for the assessment, the deadline for issuance of the form will be a maximum of 60 days.
The party is under no obligation to pay any procedural fees.
The application should be submitted to the Government Office of the County (or the Metropolitan Government Office) having territorial jurisdiction.
If you disagree with a decision of the authority, you can challenge it before a court, in administrative court proceedings. The action can be initiated by a statement of claim, referring to the infringement caused by the final decision. The statement of claim must be submitted within 30 days from the communication (generally understood as at the delivery) of such decision. The administrative court proceedings will be carried out by the regional court having territorial jurisdiction over the place of the administrative act.
Any additional information to establish that the posting has occurred must also be submitted, domestic activity must be verified in a credible manner, and a statement should be made confirming that there will be continuous and complete employment with a social insurance commitment between the employer and its employee during the term of the posting, and there will be no replacement posting concerning the employee’s posting.
Have you found this information useful? Please tell us your opinion here.