International Programs
Totalization Agreement with Hungary
Introduction
For Hungary, the Agreement covers taxes for public pensions, unemployment, and health insurance, and old-age retirement, survivors, disability benefits, and changed working capacity.
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Eliminating dual coverage for self-employment
Self-employed workers who work only in the United States are assigned U.S. coverage. Self-employed workers who work only in Hungary are assigned Hungarian coverage. However, workers normally self-employed in one country who transfer their trade or business to the other country for five years or fewer will remain covered under the country from which the worker transferred the self-employment activity.
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Hungarian certificates for employees
Employers must request a certificate of coverage to establish an exemption from U.S. Social Security contributions.
Please mail your request to:
National Health Insurance Fund
Budapest
Váci út 73/A
H-1139
HUNGARY
Please provide the following information:
- Worker's full name (including maiden name);
- Worker's date of birth;
- Worker's place of birth;
- Worker's country of citizenship;
- Worker's country of permanent residence;
- Worker’s U.S. Social Security number;
- Worker's Hungarian social security number, if applicable;
- Date of hire;
- Country of hire;
- Name and address of the employer in the United States and the Agreement country; and
- Date of transfer and anticipated date of return of employment or self-employment in the Agreement country.
U.S. employers should retain certificates of coverage in case of an audit by the IRS. Employers should not send a copy to the IRS unless the IRS specifically requests the certificate of coverage.
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Hungarian certificates for self-employed workers
Self-employed workers must request a certificate from the Central Administration of National Pension Insurance at the following address:
Fiumei út 19/a.
Budapest
1081
Hungary
Please provide the following information:
- Worker's full name (including maiden name);
- Worker's date of birth;
- Worker's place of birth;
- Worker's country of citizenship;
- Worker's country of permanent residence;
- Worker’s U.S. Social Security number;
- Worker's Hungarian social security number, if applicable;
- Nature of self-employment activity;
- Name and address of the trade or business in both countries; and
- Date of transfer and anticipated date of return of employment or self-employment in the Agreement country.
Self-employed workers should attach a copy of certificate of coverage to their U.S. tax return every year as proof of the exemption.
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Monthly benefits
Under the U.S. Social Security system, you may earn up to four credits each year depending on the amount of your covered earnings. For example, in 2022, you receive one credit for each $1,410 of your covered annual earnings up to a maximum of four credits per year. For more information, see How You Earn Credits (Publication No. 05-10072).
The Hungarian social security system measures credits in days. For example, 90 days of Hungarian coverage is equal to one U.S. credit. For simplicity, the following table shows the amount of credits a person needs to qualify for a Hungarian benefit in terms of years.
|
Retirement or old-age benefits |
|
United States |
Hungary |
Worker—Full benefit at full retirement age.* Reduced benefit as early as age 62. Required work credits range from 6 to 40 (40 credits if age 62 in 1991 or later). |
Worker— Full benefit at age 63 with 20 years of coverage (age 62 with at least 20 years of coverage if born before January 1, 1952); or age 62 with 15 years of coverage for a partial benefit. Women with 40 years of service/coverage may be eligible for an old-age retirement benefit regardless of age. |
*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
Disability benefits |
|
United States |
Hungary |
Worker—Under full retirement age* can get benefit if unable to do any substantial gainful work for at least a year. Depending on age at date of onset, from 6 to 40 credits needed. Some recent work credits also needed unless worker is blind. |
Worker— Must have a loss of at least 40% of working capacity, and rehabilitation is not recommended or is unlikely to be successful or if the time remaining to retirement age is 5 years or fewer. |
*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
**[Text]
|
Family benefits to dependents of retired or disabled people |
|
United States |
Hungary |
Spouse—Full benefit at full retirement age* or at any age if caring for the worker’s entitled child under age 16 (or disabled before age 22). Reduced benefit as early as age 62 if not caring for a child. |
Spouse—No provision. |
Divorced Spouse—Full benefit at full retirement age.* Reduced benefit as early as age 62. Must be unmarried and have been married to worker for at least 10 years. |
Divorced Spouse—No provision. |
Children—If unmarried, up to age 18 (age 19 if in an elementary or secondary school full time) or any age if disabled before age 22. |
Children—No provision. |
*Full retirement age is 66 for people born in 1943-1954 and will gradually increase to age 67 for people born in 1960 or later.
|
Survivors benefits |
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United States |
Hungary |
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Surviving Spouse—Full benefit at full retirement age* or at any age if caring for the deceased’s entitled child under age 16 (or disabled before age 22). Reduced benefit as early as age 60 (or age 50 if disabled) if not caring for child. Benefits may continue if remarriage occurs after age 60 (or age 50 if disabled). Divorced Surviving Spouse—Same as surviving spouse if marriage lasted at least 10 years. Children—Same as for children of retired or disabled worker. |
Surviving Spouse (including divorced spouse and domestic partner). May also pay survivor benefits as a parental allowance or an orphan’s allowance. To qualify for survivor benefits, the deceased worker must have died as an old-age pensioner or met the following conditions:
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Lump-Sum Death Benefit—A one-time payment not to exceed $255 payable on the death of an insured worker. |
Lump-Sum Death Benefit—No provision. |
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*The full retirement age for survivors is age 66 for people born in 1945-1956 and gradually increases to age 67 for people born in 1962 or later.
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How benefits can be paid
If you have social security credits in both the United States and Hungary, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country’s system, you will get a regular benefit from that country. If you do not meet the basic requirements, here is how the Agreement may help you qualify for a benefit:
- Benefits from the United States—If you don’t have enough U.S. work credits to qualify for regular benefits, you may be able to qualify for a partial benefit from the United States with both United States and Hungarian credits. However, for us to count your Hungarian credits, you must have at least six credits (generally one-and-one half years of work) under the U.S. system. If you already have enough credits under the U.S. system to qualify for a benefit, the United States cannot count your Hungarian credits.
- Benefits from Hungary—If you don’t have enough work credits under the Hungarian system to qualify for benefits, Hungary can count your credits under the U.S. Social Security system to help you qualify for Hungarian benefits. However, for Hungary to count your U.S. credits, you must have at least 365 days of coverage under the Hungarian system unless an exception applies.
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Claims for benefits
If you live in the United States and want to apply for United States or Hungarian benefits:
- Visit or write any U.S. Social Security office.
- Phone our toll-free number, 1-800-772-1213, 8 a.m. to 7 p.m. any business day. People who are deaf or hard of hearing may call our toll-free TTY number, 1-800-325-0778.
- Complete SSA-2490-BK (Application for Benefits Under a U.S. International Social Security Agreement) and mail to your local Social Security Administration office.
If you live in Hungary and wish to apply for benefits, contact:
Federal Benefits Unit
United States Consulate General
ul. Stolarska 9
31-043 Krakow
POLAND - The Central Administration of National Pension Insurance to ask about Hungarian benefits.
You can apply in one country and ask that country to consider your application as a claim for benefits from the other country. Each country will process your claim under its own laws, count credits from the other country as the Agreement requires, and notify you of its decision.
If you have not applied for benefits before, you may need to provide certain information and documents when you apply. This may include:
- The worker’s U.S. Social Security number.
- The Hungarian social security number.
- Proof of age for all claimants.
- Evidence of the worker’s U.S. earnings in the past 24 months.
- Information about the worker’s coverage under the Hungarian system.
You may wish to call the social security office before you go there to see if you need to provide any other information.
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Payment of benefits
Each country pays its own benefit. The U.S. Department of Treasury makes U.S. payments each month that cover benefits for the preceding month. Under the Hungarian system, the Central Administration of National Pension Insurance makes payments each month that cover benefits for the current month. For more information, contact the Hungarian authorities at the address in the section titled, “For more information.”
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For more information about Hungary's social security programs
For more information about Hungarian social security visit the Hungarian Central Administration of National Pension Insurance (ONYF) or visiting ONYF’s website at www.onyf.hu or write to:
The Central Administration of National Pension Insurance
International Pension Administrator
1081 Budapest, Fiumei út 19/a
1392 Budapest
Pf.: 251
HUNGARY