Pension cases covered by agreements

Social security agreement between Hungary and Republic of Albania

RULES ON THE PAYMENT OF CONTRIBUTIONS

The obligation to pay contributions applies, as a general rule, in the country where the person concerned earns the income, irrespective of the country in which the employee is resident or the country where the employer is established.

Special rules apply to persons who are simultaneously earning an income in Hungary and in the Republic of Albania:

  • a person who is self-employed in Hungary and the Republic of Albania at the same time, must fulfil the obligation to pay contributions in the country of residence,
  • a person who simultaneously pursues a gainful activity as an employed person in both Hungary and the Republic of Albania, must fulfil the obligation to pay contributions in the country of residence,
  • a person who is an employee in Hungary or in the Republic of Albania and an entrepreneur in the other country, must fulfil the obligation to pay contributions in the country where they are employed.

For posted workers, the country in which the posting employer is established is the country where contributions are payable.

Members of diplomatic missions and consular posts and members of their families, civil servants, persons employed on board of ships and other vessels shall be subject to rules different from those set out above.

In order to determine the existence of insurance, i.e. the obligation to pay contributions, the request must be submitted to the government office acting as the competent health insurance administration body for the place of business of the employer in Hungary.

WHEN DID THE AGREEMENT BETWEEN HUNGARY AND THE REPUBLIC OF ALBANIA ON SOCIAL SECURITY ENTER INTO FORCE?

The Agreement between Hungary and the Republic of Albania on social security (hereinafter: Agreement) has been effective since 1 July 2016.

BENEFITS UNDER THE AGREEMENT FOR WHICH THE PENSION DETERMINATION BODIES ARE RESPONSIBLE

In Hungary:

  • old age pension,
  • survivor's pension,
  • work accident-related survivor’s pension
  • work accident annuity

In Albania:

  • old age pension,
  • disability pension,
  • survivor's pension

THE FOLLOWING PERSONS MAY APPLY FOR THE ABOVE BENEFITS UNDER THE AGREEMENT

Any person, irrespective of nationality, who has paid contributions in both Hungary and the Republic of Albania may claim pension benefits under the Agreement. For survivor’s pensions, proof of payment of contributions in both countries must be provided for the deceased insured person.

SUBMITTING A CLAIM FOR PENSION BENEFITS

In the case of residence in Hungary you should complete the following documents:

  • for a claim for old age pension benefit, the form called “In the case of a claim for international old-age pension and other benefits in own right for service periods acquired in a contracting party of the agreement” 
  • for a claim for work accident annuity, the form called “Claim for benefit work accident annuity under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement” 
  • for a claim for survivor’s pension, depending on the type of claim, the following forms are relevant:
    • for widow(er)’s pension or an work accident-related widow(er)’s pension “Claim for widow(er)'s pension  or work accident-related widow(er)'s pension under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement” or
    • for orphan's allowance or a work accident-related orphan's allowance the so called „Claim for orphan's allowance or work accident-related orphan's allowance under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement” or
    • for parental pension or work accident-related parental pension „Claim for parential pension or work accident-related parential pension under the scope of Act LXXXI of 1997, Act LXXXIII of 1997 and social policy or social security agreement”

To submit a claim, the supplementary form „Supplementary form to claim for Albanian pension or work accident annuity” and the form HU/AL 207 "Supplementary form to provide information on Albanian service period” must also be completed.

The forms required for submitting a claim can be obtained from the pension insurance bodies or downloaded from the "Related forms" menu point next to this information tab.

The claim form must be accompanied by all available documents relating to the insurance periods completed in the Republic of Albania.

The claim can be submitted in person or by post.

It may be submitted in person at the customer service of the government office of the capital or county according to the place of residence or stay.

If it is submitted by post, the envelope must be addressed to the Government Office of the Capital City Budapest and marked with the uniform postal address 1916 Budapest.

The claim may be submitted by the applicant's legal representative (guardian) or by their authorised representative, accompanied by a document proving the representation.

In the case of an application for a survivor's benefit, if a survivor's pension has already been established in relation to the deceased insured person or if the application is for the revival of a survivor's pension previously paid, the claim may also be submitted at the customer service of the Pension Payment Directorate of the Hungarian State Treasury (1139 Budapest Váci út 73.).

The date of submission of the claim in the Republic of Albania is also the date of submission of the claim to the Hungarian pension insurance body.

The application, the documents enclosed by the applicant and the certificate of the period of service recognised under Hungarian legislation will be forwarded by the Government Office of the Capital City of Budapest to Instituti i Sigurimeve Shoqërore (Rruga e Durrësit, nr. 83, 1001 Tiranë, Republic of Albania), the pension insurance body competent for assessing pension claims in Albania.

In the case of Albanian residence:

In case of any questions regarding the way to apply for an Albanian pension or any questions regarding the entitlement for an Albanian pension, it is advisable to contact the Albanian pension administration body of the place of residence. For applications for a Hungarian pension, in addition to the required Albanian forms, the form AL/HU 207 should also be filled in.

The contact details of the Central Pension Body are:

Instituti i Sigurimeve Shoqërore

Address: Rruga e Durrësit, nr.83, 1001 Tiranë, Albania

Phone: 00 355 4 2 235 622, 00 355 4 2 227 198

website: www.issh.gov.al

e-mail: issh@issh.gov.al

The application submitted in Albania will be forwarded by the Albanian body to the Government Office of the Capital City Budapest, together with proof of the insurance periods completed there.

ASSESSMENT OF PENSION CLAIMS

If the entitlement for the benefit applied for by the applicant exists on the basis of the Hungarian service periods, the insurance periods certified by the Pension Administration Body of the Republic of Albania shall not be taken into account for the determination of the Hungarian pension.

The minimum periods required for a Hungarian pension are as follows:

  • 15 years of service period for old age pension,
  • 40 years of eligibility period for women's preferential pension,
  • for survivor's pensions, the service period corresponding to the age of the deceased insured person.

If entitlement for the benefits cannot be established solely on the basis of Hungarian service periods, periods of insurance completed in the territory of the Republic of Albania, certified by the Albanian pension administration body, shall also be taken into account for the determination of the pension, as if they had been completed under the legislation of Hungary, provided that they do not cover the same period.

The Agreement excludes double insurance, but periods of service completed in Hungary and Albania before the date of entry into force may overlap. These periods may be taken into account only once when applying the aggregation rule.

If, after the application of the above provisions, the applicant is still not entitled, periods of insurance completed in a third state with which Hungary has concluded a social security agreement and which provisions cover the aggregation of insurance periods shall also be taken into account.

The following periods of insurance completed in third countries may be taken into account for the assessment of entitlement to a Hungarian pension:

  • all EU Member States and EEA countries, the United Kingdom and Switzerland,
  • United States of America, Australia, Bosnia and Herzegovina, North-Macedonia, Republic of Moldova, Mongolia, Republic of Montenegro, Canada, Republic of Korea, Kosovo, India, Japan, Russian Federation, Turkey, Republic of Serbia.

If the applicant has at least 15 years of service period required for a Hungarian pension only by adding up the insurance periods, the amount of the pension must be calculated on the basis of the Hungarian and Albanian insurance periods. In the case of a survivor's pension, the Albanian insurance period should be taken into account if the deceased insured person does not have the Hungarian period of service corresponding to their age.

The pension to be determined is the proportion of the insurance periods completed under Hungarian legislation in relation to the total insurance periods. The amount of the Hungarian pension is determined solely on the basis of earnings and income in Hungary.

If the completed insurance period is less than one year and no benefit can be established on that basis in the country where the insurance period was completed, the period of less than one year certified by the Albanian pension administration body shall be taken into account as Hungarian insurance period, while the Hungarian period of less than one year shall be taken into account as Albanian insurance period.

PAYMENT OF PENSION BENEFITS

Pension benefits are paid directly to the beneficiary in accordance with the legislation of the country that established them. The amount of the established benefit shall remain unchanged for the beneficiary living in the territory of the other country.

The established Hungarian benefits are paid by the Pension Payment Directorate of the Hungarian State Treasury (1139 Budapest, Váci út 73., postal address: 1820 Budapest), detailed information on which can be found in the information " Payment options for beneficiaries living abroad ".