Act 80 of 1997 on entitlement to social security benefits and private pensions, and on the coverage of these provisions.
The tax rate is set by
The tax base is set by
The reliefs are set by
Comments
Comments
The Republic of Hungary.
The base or rate of social security contributions paid by Employers on the income of employees and of blue collar workers
Rates are identical
Bases are identical
Comments
Domestic-source income of non-residents is
Subject to SSCer
Not Subject to SSCer
Comments
Domestic source of income is subject to SSC if the non-resident person is insured
Comments
Employers (any legal or natural person, self-employed person, other organization, government body which employs insured people (see Tax object) or disburses payment to insured people; in the case of people receiving various job search allowances: the agency which disburses the allowance; in the case of people receiving various child care allowances: the agency which disburses the allowance; in the case of employers subject to net financing by local municipalities: the Hungarian State Treasury). In the case of the following income types: child care fee („gyermekgondozási díj”), child care benefit („gyermekgondozási segély”), child raising support („gyermeknevelési támogatás”), labour rehabilitation benefit („munkarehabilitációs díj”) the employers' pension insurance contribution is paid for by the central government budget.
Employers pay social security contributions for
Comments
Base for all contributions listed here above is the same
Yes
No
As general rule, the income subject to Social Security Contributions of Employers includes
Comments
Income considered
Domestic income
Worldwide income
Comments
Types of income related to social security contractual relationship under the Hungarian Social Security Laws (that is employment relationship) are subject to SSC - without regard to geographical source.
Benefits in kind
The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employers
Comments
Meal is exempt from all contributions up to a limit (18,000 HUF/month).
Service accomodation is exempt from all contributions.
Comments
Income paid in employment relationship (including members of parliament), public service and civil service relationships, public prosecutor and judge relationships, justice administration relationship, official foster parents relationship; income of regular members of the Hungarian Army, public order enforcement bodies and national civil security services; income of contracted members of the Hungarian Army, the Border Guard; income of voluntary army reserve in service; income of persons in apprentice employment relationship; income of members of cooperatives with active personal involvement; income of pupils enrolled in vocational school training with pupil employment contract; income of recipients of job search allowances; income of the self-employed who are not receiving pension on their own right; income of people in other gainful activities with active personal involvement (e.g. contract based temporary relationships, helping family members etc.) receiving payment which attains 30% of the monthly amount of the national minimum wage; income of clergymen excepting pensioners; income of small scale agricultural producers (except of pensioners); income of elected and managing officers of business corporations, foundations, NGOs etc. with income attaining 30% of the monthly amount of the national minimum wage.
Gross earned income which shall be counted towards income when calculating personal income tax advances; income from catering service fee („felszolgálási díj”); tip received directly from customer in the catering industry („borravaló”); income earned in an apprentice employment relationship („ösztöndíjas foglalkoztatási jogviszony”); income from official foster parents' fee („hivatásos nevelőszülői díj”); income from fee earned in a pupil employment contract („tanulószerződésben meghatározott díj”); membership fee deducted for organizations representing employees.
Capped contributions
No cap
Cap in monetary units:
Cap in % of the tax base:
Reduction
The reduction is
No reduction
A lump-sum amount
In percentage of base:
Based on salary
Capped
Comments
Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments
Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents
Social Security Contributions paid by Employers are tax deductible
Yes
No
Comments
Employer's social insurance contributions are accounted as personal expenditures.
The following rates apply to Social Security Contributions paid by Employers
Pensions
24.00
%
From
EUR/Natcur
To
EUR/Natcur
Health care
Unemployment
Child care
Work-related illnesses and/or accidents
Education leave
Maternity leave
Others
Comments
Special surcharges
There are special surcharges in the form of:
Surcharge 1 :
Name:
A lump-sum amount:
A percentage of income:
A tax surcharge:
Comments
Comments
24% of the assessment basis. In the case of income from catering service fee („felszolgálási díj”), the rate is 15% which includes the employees' pension contribution, as well. In the case of tip received directly from customer in the catering industry („borravaló”) the rate is 15% but the payment is voluntary.
VAT
Super reduced rate
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 contribution is collected by the Tax and Financial Control Administration.
Comments
Comments
ESA95 code
d61111
Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2010
1,816,230.40
HUF
6.71
2009
1,781,981.80
HUF
6.79
2008
1,828,616.30
HUF
6.76
2007
1,534,435.30
HUF
6.01
2006
1,225,013.00
HUF
5.08
2005
1,132,307.00
HUF
5.04
2004
1,025,026.20
HUF
4.88
2003
956,720.10
HUF
5.02
2002
868,998.10
HUF
4.99
2001
816,296.90
HUF
5.31
2000
1,005,592.20
HUF
7.55
Comments
No voluntary component is involved in the Hungarian Social Insurance Contribution System. Accrual data were available only as the total of health and pension data. Therefore, accrued revenue data for pension insurance contribution were gained on calculated basis.