The so-called Withdrawal Agreement between the United Kingdom and the EU ordered to apply until 31 December 2020 the rules of Regulation No 883/2004/EK on the coordination of social security systems and Regulation No 987/2009/EK issued for its implementation (hereinafter referred to as: EU Regulations). All provisions of EU Regulations (e.g.: the basic principles, the rules on applicable legislation and the rules related to the determination of certain benefits) had to be applied unchanged. As from 1 January 2021, the United Kingdom is a third country for the purposes of EU law and social security matters are governed by the Trade and Cooperation Agreement between the EU and the United Kingdom, in particular its Protocol on Social Security Coordination, applicable from 1 January 2021. However, under the Withdrawal Agreement, for those subject to the Withdrawal Agreement, i.e. in a situation within the meaning of Article 30, social security coordination rules shall apply until no their situation remains unchanged.
Social security coordination rules applicable from 1 January 2021:
a) Protocol on Social Security Coordination
While the new legislation provides for a more limited social security coverage compared to EU law and the Withdrawal Agreement, the Trade and Cooperation Agreement will ensure significant rights for EU and British citizens with regard to a wide range of social security benefits (e.g.: reciprocal right to health insurance benefits in kind in the other State; reciprocal aggregation of insurance periods for the determination of pension and other benefits, the export of pensions). At the same time, there are benefits that are not coordinated anymore (for example, family benefits cannot be provided to family members living in a State other than the place of insurance). Nor does the Protocol provide for an export of unemployment benefits or invalidity benefits to the territory of the other Party.
The exclusion of family benefits from the scope of the new legislation practically means that the parent(s) insured under UK legislation will not receive benefits for children residing in Hungary, and the British insurer will not supplement the benefit paid in Hungary up to the amount of the British benefit (the so-called ‘top up’, also known as the differential payment).
b) Obligations related to social security coverage
Persons falling under the scope of the new rules shall be only subject to the legislation of one State, thus it remains impossible to simultaneously maintain double coverage. Persons covered by compulsory insurance in Hungary shall not be covered by compulsorily insurance in the United Kingdom.
The prohibition on double coverage in the Act CXXII of 2019 on Entitlements to Social Security Benefits and on Funding These Services (hereinafter referred to as: Tbj.) excludes, in case of being covered under Article 6 of Tbj., the payment of healthcare contribution pursuant to Article 43 of Tbj. EU and British citizens covered by British legislation shall not be obliged to pay healthcare contributions, and paying those contributions cannot be chosen to benefit from Hungarian healthcare services.
c) Posting
In case of posting situations initiated before 1 January 2021, no new A1 certificate shall be issued and the posting may be completed without a posterior work permit until the date originally planned.
The Trade and Cooperation Agreement does not ensure the free movement of workers and carrying out work in the United Kingdom is subject to authorisation. Although the Protocol regulates social security posting, not labour law posting, it still provides, as a general rule, for the application of the principle of insurance for the place of employment, to which the postings concerned are exemptions.
Maintaining the regime of posting situations between Hungary and the United Kingdom after 31 December 2020 is possible due to the fact that Hungary notified its intention to maintain postings. A person posted to the United Kingdom remains covered under Hungarian legislation during the posting.
However, an important new rule is that the posting cannot be extended, its maximum duration is of 24 months.
d) Rights of Hungarian citizens/insured persons to healthcare services
The European Health Insurance Card (EHIC) certifying entitlement and issued by the competent institution in Hungary may continue to be used under the same conditions, from 1 January 2021, in the United Kingdom for making use of healthcare benefits provided by a healthcare provider operating in the compulsory health insurance system during a temporary stay under the conditions set out in the Protocol. A document S1 may be issued to the Hungarian insured person residing in the United Kingdom.