The amount and payment of sick pay in 2025
The legal basis for sick pay in Hungary is the social security system, which determines who is entitled to it, how it is paid and under what conditions it can be claimed. This form of monetary compensation is important not only for employees’ health, but also for the health of the economy, as it helps employees to return to work as quickly as possible while they continue to have a secure livelihood.
Who is entitled to sick pay?
An employee is entitled to sick pay if he or she has an insured status, i.e. is in formal employment and therefore contributes to the social security fund. In addition, it is an important condition that the employee must have a medical certificate, i.e. a doctor’s note stating that he or she is unfit for work due to illness or injury, and thus unable to carry out job-related duties. Sick pay can be claimed for the period of sickness after the sick leave days have expired.
The difference between sick leave and sick pay is that, while sick leave is for the first 15 working days and is paid by the employer, sick pay is paid after that period by the state, through the social security system. So the answer to the question “Who pays for sick pay?” is that sick pay is disbursed from the social security system after the first 15 working days, while prior to that, during sick leave, it is the employer that pays.
The amount and calculation of sick pay
The amount of sick pay is influenced by a number of factors, but primarily by the income of the employee concerned, on the basis of which he or she pays social security contributions as an insured person. The base amount of the sick pay is calculated on the basis of the average of this income per calendar day. The calculation of the sick pay takes into account the gross income subject to social security contributions and the length of the sickness (number of sick pay days). Whether the person is hospitalised is also an important factor, as this may reduce the amount of sick pay.
The amount of sick pay is 60% of the gross base salary for each calendar day if the employee has been insured for at least 730 days and is recovering at home. If the employee has been insured for less than the above period or is in hospital, the rate of the sick pay is 50%. However, the maximum sick pay may not exceed 30 times twice the current minimum wage per day.
Example of sick pay calculation:
Let us assume an employee earns a gross monthly salary of HUF 400,000 and is sick recovering at home. In this case, the amount of sick pay is calculated as follows:
- Daily amount of sick pay = (HUF 400,000 / 30) x 0.6 = HUF 8,000.
- If the employee receives sick pay for 10 days, then:
- Total amount of sick pay = HUF 8 000 x 10 days = HUF 80,000
This amount will, of course, also depend on the length of time the employee has been insured and whether he is at home or in hospital, but the calculation principle is always the same.
Special situations
There are cases where length of sick pay lasts longer or is subject to special conditions. Long-term sick pay and hospital sick pay are two situations that are subject to special rules.
Duration of long-term sick pay
In principle, sick pay can be claimed for up to one year, but this period can be extended if the employee has been continuously insured and is still medically certified as unfit for work. During the period of long-term sick pay, the same rules apply as mentioned above for calculating the amount of sick pay, except that in the case of sickness lasting longer than one year, further medical examinations and certificates are required to maintain entitlement, which is assessed by the Health Insurance Benefits Department of the Government Office, and a decision is taken on the payment of the sick pay.
Hospital sick pay
If an employee needs hospital treatment, the rate of sick pay is generally lower than in case the employee is recovering at home. In such cases, the amount of sick pay is 50% of the determined daily base salary, as opposed to the 60% rate for recovering at home. This rule is based on the fact that patients receive room and board, as well as medical care during their hospital stay.
When is a higher amount paid?
There are also situations where the amount of sick pay may be increased. For example, if the employee claims accident sick pay, the rate of the sick pay will a higher percentage rate. In the case of accident sick pay, for example, the employee receives 100% or 90% of his or her gross earnings, depending on whether the employee is at home or in hospital.
How can sick pay be claimed?
Applying for sick pay is not a complicated process, but there are some important steps to follow and documents to submit to ensure that you get the benefit in time. Here is a step-by-step guide on how to apply for sick pay:
1. Obtaining a medical certificate
The first step is for the employee to obtain a medical certificate (doctor’s note) from his/her GP or attending physician. This certificate will include details of the illness, including how long the employee will be unable to work. The certificate must be renewed if the period of sick leave is extended.
2. Submission of the documents to the employer
Once the medical certificate is available, it must be submitted to the employer. It is then the employer’s responsibility to forward the claim to the social security office, which will process it.
3. Processing of the claim by social security administration
A claim for sick pay submitted by the employer is processed by the Social Security Payments Office. Additional documents required for the claim may include the employee’s “Certificate of insurance status”, which contains evidence of previous employment.
4. Payment of sick pay
The payment time of sick pay may vary, but is usually paid within 30 days. The payment is by the social security administration directly to the employee’s bank account. If there are any problems during the process, the social security administration will notify the person concerned and may ask for missing documents to be submitted.
5. Continuous claim in case of prolonged sickness
If the illness lasts for a longer period, the medical certificate must be continuously updated and resubmitted to the social security administration via the employer. The continuation of sick pay is automatic if all documentation is in order.
Frequently asked questions about sick pay
1. Who pays the sick pay?
Sick pay is paid by social security administration after the first 15 calendar days of sick leave. During the first 15 calendar days of sick leave, the employer is obliged to pay the employee, after which the sick pay is paid by the social security administration.
2. How long can one be on sick leave?
Sick pay can be paid for up to one year, but in certain cases, such as in the case of long-term illness, it can be extended on an equitable basis and paid by the Health Insurance Benefits Department (PEO) of the Government Office. On the basis of a medical certificate, sick pay can be claimed continuously until the ability to work is restored.
3. What is the amount of sick pay?
The amount of sick pay is 60% of the gross base salary for each calendar day if the employee has been insured for at least 730 days and is recovering at home. If the employee has been insured for less than the above period or is in hospital, the rate of the sick pay is 50%. However, the maximum sick pay may not exceed 30 times twice the current minimum wage per day.
4. How is sick pay calculated?
The amount of sick pay is influenced by a number of factors, but primarily by the income of the employee concerned, on which he pays social security contributions as an insured person. The basis of the sick pay is calculated on the basis of the average of this income per calendar day. The amount of the sick pay takes depends on the employee’s income subject to social security contributions, the length of the sickness (number of sick pay days), as well as the place where the employee is recovering (at home or in hospital). The rate of sick pay is higher in case the employee is at home (60%) and lower in case of hospitalization (50%).
5. What happens if the sick pay expires but the employee has not yet recovered?
If the sick pay expires after a maximum of 1 year and the employee is still unable to work, additional benefits may be claimed with medical certification, such as an equity-based sick pay or rehabilitation or invalidity benefit, depending on the severity of the illness.
How can Forvis Mazars help?
Forvis Mazars can help companies manage their payroll, including the accurate calculation and administration of sick pay. We can ensure that employees’ sick pay is paid on time and accurately, taking into account legal requirements.
The legal experts of Forvis Mazars can assist with legal issues related to employees, including sick pay entitlement, the differences between sick leave and sick pay, and other information related to employee rights.