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Notes on Individual Rules under the Japan-Hungary Social Security Agreement

100-493-353-173 Last updated date:10 25 2016

1. Detached worker from Japan only with employment contract with Japanese employer

If you are sent to work in Hungary and you have employment contract only with the Japanese employer, you will be covered only by the Japanese system, on condition that your expected detachment period does not exeed 5 years.

2. Detached worker from Japan also with employment contract with employer in Hungary

If you, with an employment contract with Japanese employer, are sent to work in Hungary and you also have an employment contract with the employer in Hungary who is related to your Japanese employer, you will be coverd only by the Japanese system, on condition that your expected detachment period does not exceed 5 years.
Under the Japan-Hungary Agreement, your Japanese employer and your employer in Hungary are treated as "related" when they are recognized that they participate in management, control or capital, directly or indirectly.
When you conclude an employment contract with your employer in Hungary after you are sent to work in Hungary, you will be covered only by the Japanese system. In such case, you need to apply for your Certificate of Coverage again. Please note,however, that you cannot change the end date of your detachment period. This applies to workers who are detached from Hungary to Japan.

3. Crews of aircrafts

If you work as an employee on an aircraft in international traffic, you will be subject only to the social security system of the country in which your employer is located.

4. Extension of the period of exemption

If you need to continue to work as a detached worker (or self-employed person) in the other country for longer than originally planned period of detachment, because of unforeseen circumstances, you may be continuously covered only by the system of your original country where you are detached from. This extension is granted if the total detachment period including original detachment and extension does not exceed 6 years, and if Japan and Hungary agree based on the individual examination. Please note, however, even if the total period of detachment including the extension period is less than 5 years, you still need to apply for the extension to be granted.
Also note that extension is granted only once, regardless of whether the total period of detachment exceeds 5 years or not. We advise you to plan well the detachment period before you apply for the Certficate of Coverage.
For example, your original detachment period is 1 year and you later apply for 2-year extension. If Japan and Hungary agree on the extension, you will be covered only by the system of your original country where you are detached from, for 3 years. Please note that any additional extension will not be granted.

5. Workers' Accident Compensation Insurance

The Hungary's pension and health insurance systems include workers' accident compensation program. If you are sent from Japan to Hungary and only covered by the Japanese systems, please note that you will not be covered by any compulsory workers' accident compensation insurance of either country. In this case, you need to be covered by the "Special Insurance for Persons Dispatched Abroad" under the Japanese Workers' Accident Compensation Insurance system or any private insurance against occupational injuries.
Please contact the Labour Insurance Contribution Levy Division, Labour Standard Bureau of the Ministry of Health, Labour and Welfare at Tel: +81-3-5253-1111 (extension No.5436).

6. Coverage periods totalization for Hungarian benefits

If you do not have enough Hungarian coverage periods alone to qualify for the Hungarian old-age benefits or survivors' benefits, your coverage period under the Japanese pension systems will be considered for Hungarian benefits as long as the coverage periods of both country do not overlap. For this purpose, however, your Hungarian coverage periods need to be more than one year.
Please note that the Hungarian disability pension is not subject to the totalization. In case that you plan to work in Hungary for more than 5 years, i.e., you will be covered only by the Hungarian system, you may enroll in the Japanese National Pension or the Employees' Pension Insurance systems on a voluntary basis so that you are covered for disability benefits under the Japanese systems.

7. Retroactive payment of Hungarian pension benefits

The Hungarian benefits are, in principle, retroactively payable for up to six months. If you claim Hungarian benefits within 1 year after the effective date of the Japan-Hungary Agreement, your benefits are provided retroactively up to the time that you satisfy all eligibility requirements for benefits, but not earlier than the effective date of the Agreement.

8. Payment of Hungarian benefits

The Hungarian pension benefit amounts are determined in the Hungarian forints and your benefits can be paid in Japanese yen to your bank account in Japan.

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