Bilateral agreements

19 October 2017.

Social policy agreements

Hungary concluded seven agreements with its neighbouring socialist countries between 1957 and 1962. There are two basic types of agreements:

-      those based on the geographic principle

-      those based on the pro-rata distribution of burdens.

The Hungarian-Romanian agreement and the Hungarian – Soviet agreement based on the geographic principle, meaning that social insurance benefits are paid by the country of residence at the time the claim is made.  In terms of pensions, this means that eligibility acquired in either country is regarded by the other country as eligibility acquired in its territory, pension is always established by one contracting country. The amount of pension paid in Hungary will only depend on the earnings gained in Hungary in the absence of this, the average wage for the given job shall be taken into account.

The Hungarian – Soviet agreement is in force regarding Ukraine and Russia.

Hungary concluded agreements based on the pro-rata distribution of burdens with Yugoslavia, Poland, Czechoslovakia and Bulgaria.  Based on these agreements, the eligibility acquired in the different countries is added up, and the theoretical pension amount is based on the total period of employment acquired in the two countries, with the contracting parties only paying the part that is pro-rata to the total eligibility in the respective country under applicable legislation.

Only the Hungarian- Yugoslav agreement still is in force regarding Kosovo.

Social security agreements

A common feature of social security agreements is that they are no longer based on compulsory distribution of burdens. Therefore, in case of independent Hungarian eligibility, the addition rule need not be applied. Novelty is that several agreements allow the period of employment acquired in so-called third countries to be taken into account, for example the agreements with Canada, Montenegro, or Serbia.

 Agreements on Social Policy

  • Hungarian-Yugoslavian agreement (01/06/1958-)
  • Hungarian – Soviet agreement (01/07/1963-)

Agreements on Social Security

  • Canada (01/10/2003-)
  • Québec (01/07/2006-)
  • Republic of Korea (01/03/2007-)
  • Montenegro (01/04/2009-)
  • Bosnia and Herzegovina (01/08/2009-)
  • Mongolia (01/06/2012-)
  • Australia (01/10/2012-)
  • India (01/04/2013-)
  • Japan (01/01/2014-)
  • Moldova (01/11/2014-)
  • Serbia (01/12/2014-)
  • Macedonia (01/09/2015-)
  • Albania (01/07/2016-)
  • United States of America (01/09/2016-)