Taxes in Europe Database v2
Act 156 of 2011 (Chapter 9)
Instead of the employers' pension insurance contribution, the employers' health insurance contribution and the employers' labour market contribution, employers shall pay social contribution tax since 1 January 2012. Only the name and the legal nature has changed, the rate has remained the same.
According to the Act on the State Budget the Pension Insurance Fund is entitled to 85.46% and the Health Insurance Fund is entitled to 14.54% of the revenue from social contribution tax in 2015.
Legal relationship which is subject to tax liability:
The social contribution tax's base corresponds with the personal income tax's base.
Types of income arising from relationship subjected to tax liability are subject to social contribution tax - without regard to geographical source.
The Job Protection Act (JPA) introduced new targeted SSCer reliefs to incentivise the employment of the most disadvantageous groups on the labour market. This measure reduces the standard rate of the employers' contributions up to a cap of HUF 100,000 per month.
The JPA introduced a permanent reduction of the employers' tax rate by 14.5% for
It also introduced temporary reductions (27% in the first two years of the employment, and 14.5% in the third year) for
Besides these JPA reliefs another reliefs are available:
The employers are obliged to contribute 27% of the gross income paid to the employee. There are some social tax reductions if certain conditions are met (see previous ‘Comments’ box).
The standard rate is 27%.
The 12th day of the month following the month in which the income was earned. In the case of small scale agricultural producers, the 12th day of the calendar quarter following the quarter in which the income was earned.
The tax is collected by the National Tax and Customs Administration ("Nemzeti Adó- és Vámhivatal").
As noted above, the Social Contribution Tax replaced the three SSCers in 2012. The change is of legel nature, rates and bases did not change.