Under Article 5.2, an employee who normally works for an employer located in the United States or in Hungary who temporarily transfers to work in the other country for the same employer will continue to pay social security taxes to the system of the country from which the employee transferred.  This rule will apply only if the employer expects the period of transfer to be 5 years or less.

Article 5.2 also applies to certain workers whose employers in the United States send them to work for a subsidiary or other affiliate of that employer in Hungary.  U.S. law allows American companies to extend U.S. Social Security coverage to U.S. citizens and resident aliens employed by an affiliated company in another country.  To do this, the parent company in the United States must enter into an agreement with the IRS to pay Social Security contributions on behalf of all U.S. citizens and residents the foreign affiliate employs.  Under Article 5.2, U.S. citizens or resident aliens an American employer sends to work for a Hungarian affiliate for 5 years or less will continue to have coverage in the United States and be exempt from Hungarian coverage and contributions, if an IRS agreement covers the affiliate.