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 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.
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 British citizens/insured persons to healthcare services in Hungary
Persons covered by British legislation are entitled to healthcare services during their stay in Hungary in possession of a certificate of entitlement issued by the British insurer from 1 January 2021 (S1 document and European Health Insurance Card – EHIC, or GHIC – new Global Health Insurance Card).
EHIC issued by the British insurer before 1 January 2021 shall give entitlement to healthcare benefits until the expiry of its period of validity. The British insurer shall issue a GHIC card after the expiry of the EHIC period of validity and in the event of still meeting eligibility conditions, which entitles to making use of healthcare benefits provided by a healthcare provider operating in the compulsory health insurance system under the conditions set out in the Protocol.
The provisions on the use of S1 and S2 documents continue to apply to persons covered by British insurance. Based on the S1 document, a TAJ card may be issued to the insured person residing in Hungary.