Guide for Exemption Application

How to be Exempt from Hungary Pension Contributions (social insurance contributions)

• If you are subject to the applicable Korean legislation of the Social Security Agreement and temporarily work in Hungary, you must get "a Certificate of Coverage under Social Security Agreement" from the National Pension Service of Korea and submit(show) it to a Hungarian Agency in order to be exempt from the Hungarian social insurance and employment insurance contributions.
• 1. A request for a Korean Certificate of Coverage
  • If you are an employee, your employer must request a Korean Certificate of Coverage.
  • If you are self-employed, you yourself must request a Korean Certificate of Coverage.
• (1) Who requires a Korean Certificate of Coverage under the Social Security Agreement?
  • An employee who is sent to work in Hungary for a certain period (for less than 3 years)
  • An employee who was sent to work in Hungary for less than 3 years but who has his/her working period extended (for 3 years or less). In this case, mutual consent between both countries is required.
  • A person who ordinarily resides in Korea and is self-employed in Hungary
  • A person who ordinarily resides in Korea and is employed or self-employed in both Hungary and Korea
  • Some workers or members of a crew on an aircraft who can be exempt from Hungarian social insurance contributions and unemployment insurance contributions under the Social Security Agreements between Korea and Hungary
• (2) How to request a Korean Certificate of Coverage under the Social Security Agreement?
  • The employer in Korea or self-employed person must request a Korean Certificate of Coverage by
    1) visiting the National Pension Service of Korea with the required documents; or
    2) sending the required documents to the National Pension Service of Korea by mail or fax.
  • National Pension Service, Center for International Affairs, 6^th Floor, Kukmin-Yeonkum Building, 180, Giji-Ro, Deokjin-Gu, Jeonju-Si, JEONBUK STATE, 54870, Korea
    - Fax (063)900-3404
• (3) Required Documents
  • "Application for Certificate of Coverage under Social Security Agreement"
  • Documents to confirm the employee's detachment such as a Detachment Order.
  • The"Application for Certificate of Coverage under Social Security Agreement" is available on our website -> Social Security Agreement -> Forms or you can get them by visiting NPS's regional office and by copying the form in the manual brochure at the NPS.
• 2. Showing the Certificate of Coverage to the Hungarian Agency
  • In Hungary, since an employer or a self-employed person is normally responsible for reporting and paying social insurance contributions, you don't have to pay contributions for the periods of coverage specified on the Korean Certificate of Coverage under the Social Security Agreement. However, when the Hungarian agency requests the evidence for the exemption, you have to show that Certificate of Coverage.
  • If you or your employer has already paid contributions for the previous exemption period, for a certain period he/she is able to request a refund according to the Hungarian agency's procedure. However, in some cases, there could be limitations on the period regarding retroactive exemptions or refunds, so we recommend that you request the exemption allowing a suitable amount of time.

How to be Exempt from the Korean Pension Contributions and Employment Insurance Contributions

• If you are mandatorily covered by the Hungarian social insurance system and you would like to be exempt from coverage under the Korean National Pension and Employment Insurance Scheme, you must get a Certificate of Coverage under the Social Security Agreement from the Hungarian Agency and submit it to the Korean National Pension Service.
• 1. A request for a Hungarian Certificate of Coverage
  • If you are an employee, your employer must request a Hungarian Certificate of Coverage.
  • If you are self-employed, you yourself must request a Hungarian Certificate of Coverage.
• (1) Who requires a Hungarian Certificate of Coverage under the Social Security Agreement?
  • An employee who is sent to work in Korea for a certain period (for less than 3 years)
  • An employee who is sent to work in Korea for less than 3 years but who has his/her working period extended (for 3 years or less). In this case, mutual consent between both countries is required.
  • A person who ordinarily resides in Hungary and is self-employed in Korea
  • A person who ordinarily resides in Hungary and is employed or self-employed in both Korea and Hungary
  • Some workers or members of a crew on an aircraft who can be exempt from Korean National Pension and Employment Insurance contributions under the Social Security Agreements between Korea and Hungary
• (2) How to request a Hungarian Certificate of Coverage under the Social Security Agreement?
  • After contacting the Hungarian Agency by phone or fax, you must request a certificate with the required documents according to the agency's procedures.
• (3) Issuing Agency of the Hungarian Certificate of Coverage
  • National Health Insurance Fund Tel. 06-1-350-2001 Fax. 06-1-359-6654 www.oep.hu

• 2. Submission of the Certificate of Coverage to the Korean National Pension Service
  • If you are a worker, an employer in Korea (if self-employed, you yourself) must submit an " application of exemption" as well as an original copy of the "Hungarian Certificate of Coverage", and a copy of your identification to the International Center or the regional office by visiting or by sending a registered letter. (Because an original copy must be submitted, a facsimile or a copy of the Hungarian Certificate will not be accepted)
  • If you submit a Hungarian Certificate of Coverage, you are exempt from coverage under the Korean National Pension and the Employment Insurance scheme for the period shown on the Certificate of Coverage. If you have already paid contributions before you submit the Certificate of Coverage, the amount of the contributions already paid can be transferred to your due contributions or refunded. However, in accordance with the regulations of the National Pension Scheme, the right to request a refund of over-collected amount is valid only up to 5 years from the day following the processing of a qualification change, therefore, we recommend that you request exemption within the required period.
  • ※ Information here on our website is a general guide. You can get more information at the International Center of the NPS or any regional office of NPS.