From 1 January 2026, Hungary introduces a new way of reporting certain service contracts called “long-term service contracts” (tartós megbízási jogviszony). This change mainly affects companies that regularly use contractors instead of employees.
A service contract can be classified as long-term if the company registers it as such before the work starts with the Hungarian tax authority (NAV) on the official registration form.
Once the contractor is registered in this way, they become insured under the Hungarian social security system from day one. This means that insurance is not linked to how much they earn in a given month – it applies automatically.
Importantly, this status depends entirely on the employer’s decision and registration.
How is this different from a normal service contract?
Under the standard rules, contractors are only insured if their monthly income reaches at least 30% of the Hungarian minimum wage.
This means that in normal service contracts, the company must check every month whether the income is (tax and contribution base) is reach this limit, so high enough – and insurance may start and stop from month to month.
With a long-term service contract, this monthly check is no longer needed.
The contractor is insured continuously, even if their actual fee is lower.
When a contractor is registered as long-term:
- The company must pay social security contributions and social contribution tax
- These must be paid at least on the minimum contribution base
Less administration, but ongoing obligations
The contract only needs to be registered once, before the start date, so there is no monthly on-off registration. However, contributions and reporting must be done every month, just like for employees.
Why can this be beneficial?
For the contractor, the biggest advantage is continuous social security coverage, which is important for example, when applying for:
- EU health insurance card
- medical care
- pensions and other benefits
These new rules apply to service contracts starting from 1 January 2026.
