Hungary reduces social security sick pay benefits

In Hungary, the maximum daily cash sickness benefit provided by social security for short-term disabilities registered on or after May 1 will be reduced from four times the legal minimum wage to two times.

This could affect employers, particularly if a company has a policy to top up social security benefits to 100% of pay (which some do) because now there is a larger gap to cover.

The new ceiling will impact employees earning more than HUF 260,000 per month ($1,400 U.S.). There may be employee pressure to maintain a short-term disability benefit of 60% of salary up to HUF 520,000 per month or $2,809.81 U.S. (the previous level) or a percentage of actual pay.

Currently, the short-term disability benefit is paid by the employer for the first 15 days and paid by social security thereafter. The employer-paid benefit is 70% of full pay (based on average earnings in the year prior to disability); this requirement remains unchanged.

From the 16th day of absence, social security provides a cash benefit of 60% of pay up to the ceiling, which is now twice the prorated monthly legal minimum wage. The benefit is 50% during periods of hospital confinement. The benefit also is 50% if the period of employment prior to the disability was less than two years. Employers are required to pay one-third of the benefit and the government pays the other two-thirds (actually paid by the employer but recovered by deduction from social security contributions).


Korean employers to provide paid paternity leave

In May, Korea's Ministry of Employment and Labor announced a draft revision of the equal employment law that would require employers to provide pay for up to five days of paternity leave. Currently, paternity leave is three days and unpaid. If passed by the National Assembly, this amendment would take effect in 2012.


IBIS eVisor is an electronic news and compliance alerts service covering information in the area of international employee benefits in over 40 countries. eVisor is a service of IBIS Advisors, with more than 35 years of experience providing global HR solutions.

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