Last updated on 25 September 2023.
To learn about salaries and payroll taxes in Hungary in 2023, click here.
For the latest information pertaining to H2 2019, click here.
You can find the H1 2019 updates here.
Each year, regulations are adjusted to meet the new conditions of the changing world. In 2018 again, Hungarian payroll taxes and salaries have been modified. Just like last year, the minimum wage has been increased, while the employer’s payroll taxes decreased.
Since the minimum wage increased, make sure the salaries of your employees are still above it!
A minimum wage is the lowest amount of compensations employers may legally pay to workers. There are two main types of minimum wage, based on the requirement of the position your employee fills.
Please note that the gross salary must be modified in the employment contracts as of 1st January. If you need any kind of assistance in the process, including a need for a contract modification template, please contact us.
In order to compensate the companies for the raise in the minimum wage, the payroll costs (which are paid on top of the gross salary) will be decreased from 23,5% to 21% starting from 2018.
| Minimum wage | 2017 | 2018 |
| Gross salary: | 127,500 | 138,000 |
| Company’s payroll tax: | 29,962 | 28,980 |
| Total cost: | 157,462 | 166,980 |
The costs of the employer this way increase only by HUF 9,518 (6,04%).
| Guaranteed minimum salary | 2017 | 2018 |
| Gross salary: | 161,000 | 180,500 |
| Company’s payroll tax: | 37,835 | 37,905 |
| Total cost: | 198,835 | 218,405 |
The costs of the employer this way increase only by HUF 19,570 (9,84%).
If you pay your employees more than the minimum wage (HUF 138,000) or the guaranteed minimum salary (HUF 180,500), payroll taxes in 2018 will bring you some benefits. A company’s payroll costs build up from the gross salary, and the payroll tax that needs to be paid by the company on top of that. In 2017 this was 23,5%, but from 2018 it will decrease to 21%.
| Salary | 2017 | 2018 |
| Gross salary: | 200,000 | 200,000 |
| Company’s payroll tax: | 47,000 | 42,000 |
| Total cost: | 247,000 | 242,000 |
Your company can either make some savings or it may use this tax deduction as an opportunity to motivate the employees by increasing their salaries.
The Hungarian minimum wage will increase to HUF 138,000, and the guaranteed minimum salary to HUF 180,500 as of 1st January 2018. The managing director’s salary or the base of the minimum contributions also follow this increase. While the tax base increases, the company’s payroll tax will also decrease from 23,5% to 21%.
If there is any change in the salary of any of your employees, discuss this with your accountant or payroll specialist.
If you are interested in the details, contact your English speaking accountant and we will send you a detailed breakdown. Not our client yet? Learn more about our accounting and finance services here, or call our office on +36-1-317-8570 to ask for a free initial consultation. You may also send a letter to info@helpers.hu.
You might also want to check out our salary calculator, to see how much each employee will cost you.
Go to the salary calculator now!
КОНТАКТ
Tax returns season is starting soon in Hungary. Drafts created by the Tax Authority become available next week; the deadline for submission is 21 May 2024.
Далее
This year, the minimum wage was increased by 15%, while the guaranteed minimum salary by 10%. No changes were made to payroll taxes in 2024, but there have been some changes to the SZÉP Card.
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