Maximized sick pay

Sick leave

In the first 15 days of incapacity for work due to illness the employee may use not the commonly referred sick-pay but the so-called sick leave. The employee is entitled to 15 working days of sick leave each calendar year (except for incapacity for work caused by work accidents or occupational illnesses). During the time of sick leave 70% of the relevant absence fee is payable the employee. This amount is subject to tax and contributions. The total payment due during the time of sick leave is covered by the employer.

The employee’s incapacity for work during the time of sick leave is certified by his treating physician or, in the case of hospital treatment, the hospital.

Sick pay

Sick pay is payable to the employee on sick leave from the day following the end of the sick leave period or if the employee has used up his 15 days of sick leave in the given calendar year.

The following changes were introduced from 2010 concerning the use of sick pay during the period of employment after the end of the sick leave period:

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If the employee has been in continuous employment for at least two years, the base of assessment of his sick pay is 60 percent (instead of the previously applied 70 percent) of his eligible income broken down for calendar days.
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If the term of the employee's continuous employment is shorter than two years, the rate of the sick pay for the time of his hospital treatment is 50 percent (instead of the previous 60 percent) of the employee’s eligible income broken down for calendar days.

However, the amount of sick pay paid for a calendar day may not exceed in either case one thirtieth of 400 percent of the minimum wage effective on the first day of eligibility for sick pay, which means a maximum gross amount of HUF 9,800 per day in 2010.

Previously legal amendments had been introduced to limit the payment of contribution parallel with the restriction of the amount of sick pay payable. The so-called “annual contribution cap” was introduced for this purpose and is still applicable. This cap provides that the employee only pays his contributions on a certain amount of annual income and his acquired income will proportionately serve as the base of his sick leave.

Later a small modification significantly changed this rule as the “cap” was eliminated in respect of the individual 2 percent health insurance contribution withheld from wages.

As a result of the modifications, the withheld individual contributions increased while at the same time the rate of the sick pay reduced and was even maximized this year.

Furthermore, employers are still obliged to pay one third of the sick pay.

Passive sick pay

Passive sick pay is a popular and frequent form of sick pay. Employees may use passive sick pay upon the termination of their employment and in the three calendar months following the termination of employment.

While a few years ago employees could use the title of passive sick pay for 365 calendar days, from 2010 this option will be restricted to 30 calendar days. In addition, in 2010 the legislator also maximized the amount of passive sick pay providing that during the period of the passive sick pay the amount of the sick pay may not exceed one thirtieth of 150% of the effective minimum wage by calendar day. Accordingly, the maximum amount available in 2010 is gross HUF 3,675/day.

Employers still do not have a one-third payment obligation on the passive sick pay paid to employees.

Accident sick pay

Accident sick pay is payable to the employee who becomes incapable for work as a result of a work accident during his employment or within three days of the termination of his employment at the latest. From the perspective of eligibility for accident sick pay the person who is unable to work due to his health conditions connected with the work accident and requiring medical treatment or due to the absence of a medical appliance is regarded as incapable for work. The daily amount of accident sick pay is the same as the amount of the employee’s income per calendar day paid for his work in the month directly preceding the first day of his eligibility of accident sick pay – forming the base of the health insurance contribution.

From January 2010, the term of “work accident” was modified. According to the new definition, work accident means the accident suffered by the insured person during or in relation to the work performed in his job as well as the accident suffered by the insured person during his commute to work or home. Similarly, the accident suffered by the insured person during the performance of public interest work or during the use of certain social security services also qualifies as a work accident. The rate of sick pay for accidents suffered during commute to or from work is 90% of the monthly salary of the employee.

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