Hungary Payroll & Tax Compliance Updates
Discount/Allowance for young people under 25 years of age has been introduced
A. Update
Discount of HUF 433,700 per entitlement month will be allowed for employee under the age of 25 years. The last month in which he or she reached the age of 25, may be taken into account as the month of entitlement. The discount for young people under the age of 25 can be applied after the discount for mothers raising four or more children, but in the order before the personal discount, the first marriage discount and the family discount.
Disability Discount/ Allowance has been increased.
A. Update
As per the income tax Act, disability allowance is to be 1/3rd of the minimum wage and since gross minimum wage has been increased to 200,000 Hungarian forints (HUF) from 160,000 HUF hence the amount of disability allowance for the year 2022 will be 666,67 HUF per month
Elimination of Vocational Training Contribution
A. Update
Vocation Training Contribution of 1,5% paid by employer will be eliminated from the year 2022.
Reduction in Social Contribution Tax
A. Update
The social security contribution tax paid by employer will be reduced by 2,5% from 15,5% to 13%.
Increase in Minimum Wage and Guaranteed Minimum Wage
A. Update
The gross minimum wage will be increased from 160 000 Hungarian forints to 200 000 Hungarian forints, and the gross guaranteed minimum wage will be increased from 219 000 forints to 260 000 forints in 2022.
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