Living and working conditions

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Working conditions

Salaries and wages


In Hungary, employees are entitled to receive a compulsory minimum wage, the amount of which is determined by the Government on an annual basis. As of 1 January 2020, the minimum wage rates are HUF 161 000 a month, HUF 37 020 a week, HUF 7 410 a day and HUF 926 an hour. The guaranteed minimum wage for those employed in jobs requiring at least secondary level qualifications or vocational training is HUF 210 600. For people working under the simplified employment scheme, the daily labour charges are HUF 500 for agricultural seasonal work and for seasonal work in tourism, HUF 1 000 for casual work, and HUF 3 000 for film industry extras. Full-time workers in the workfare scheme earn HUF 81 530 per month if they have vocational qualifications and HUF 106 555 per month if they do not have vocational qualifications. In October 2019, the gross average wage was HUF 365 100 (net amount: HUF 242 300), 11.6% higher than a year earlier.

Employees are entitled to receive from the employer the salary laid down in the employment contract, which must be adhered to. The salary may be fixed as a time-based rate or on the basis of output, or a combination of the two. Employees must be paid for additional hours worked on top of the salary for normal working hours. The salary due to the employee must be entered in the accounts and paid out in a single payment monthly in arrears, in forint, in cash or through bank transfer. However, the employer and employee may agree on different arrangements. Employees must be given a written, detailed salary slip (electronic statements are also acceptable), and deductions may be made from the salary only pursuant to the legal provisions, an enforceable decision or the employee’s consent. The payslip must show the employee's gross pay, the amount deducted in tax and social security contributions, and the net amount of salary paid. In certain cases, employers may even pay fringe benefits to their employees (e.g. contributions for meal, commuting to work, travel and other expenses within the so-called ‘cafeteria’ scheme). Employers issue employees with a tax certificate of payments and deductions required for their tax returns.

The employer deducts the following contributions from the private individual’s gross income and pays the relevant amounts to the National Tax and Customs Administration (NAV):

  • 10% pension contribution,
  • 8.5% health insurance and labour market contribution, comprising 4% health insurance contribution for benefits in kind, 3% health insurance contribution for cash benefits, 1.5% labour market contribution,
  • and personal income tax (a standard 15%).

Deductions incumbent upon the employer:

  • 1.5% vocational training contribution,
  • 7.5 % welfare contribution tax,
  • rehabilitation contribution (employers with more than 25 staff have to pay it annually in the amount of nine times the minimum wage, if the average number of people with disabilities they employ is less than 5% of the average number of staff).

The same rates of contribution apply to foreign employers. Payment can be made monthly by the foreign employer or its representative or, in the absence thereof, by the employee, to the National Tax and Customs Administration’s bank account designated for this purpose.

For certain categories of employees, the employer is entitled to a reduction of the 17.5% welfare contribution tax.

Mothers are exempted from personal income tax (PIT) until the end of their lives if they have raised, are raising, or, at any time after 1 January 2019, will raise four or more children. Artists, athletes and coaches may opt for the preferential tax type ‘simplified contribution to public revenues’. Taxpayers may choose the simplified contribution to public revenues to pay tax on income only if it was paid to them in HUF and did not exceed the legally imposed cap of HUF 60 million. There is a further condition regarding this cap, in that the income must be equal to at least 12 times the minimum wage. If the people concerned have an annual income of at least 12 times the minimum wage, taxed in accordance with the ordinary rules, on any amount in excess of that the employer pays a contribution of only 19.5%, and the taxpayer pays only 15% tax on the gross salary. In addition to the income tax, foreign resident performing artists and foreign film crew members will also need to pay the 19.5% welfare contribution tax on their incomes earned after 1 January 2019. The welfare contribution tax will be payable until such time as the income earned in the current year reaches twenty-four times the amount of the minimum wage.


Text last edited on: 05/2020

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