Foreign employees face longer waits for social security numbers

IMPACT – MEDIUM

What is the change? Social security authorities in Budapest have reorganized their processing of social security numbers and issuance of certificates for foreign assignees.

What does the change mean? The government agency will now process requests for social security numbers in eight business days (instead of one day) and will issue the certificates by mail.

• Implementation time frame: Immediate.
• Visas/permits affected: Social security certificates.
• Who is affected: Foreign nationals who are required to register and obtain a social security number. The change in processing is currently only affecting applicants in Budapest and those applying for their initial social security number (not renewals).
• Impact on processing times: Eight business days for processing of the social security certificates and a few additional days for delivery of the certificate by mail.

Background: Previously, social security authorities in Budapest processed and issued social security numbers within one day, but offices outside the capital took eight days and sent the certificates via post. All offices in Budapest are now adopting the longer processing time.

BAL Analysis: Employees are generally not permitted to work until they are registered with social security authorities. Employers should factor in the additional processing time for new foreign employees’ social security numbers and may need to adjust work start dates accordingly. BAL is working with Hungarian officials to allow a workaround so that employees may start work while their social security number is pending. Employers should discuss these options with their BAL professional in individual cases.

This alert has been provided by the BAL Global Practice group and our network provider Inter Relocation in Hungary. For additional information, please contact your BAL attorney.

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