As every year, following legislative changes requires special attention both on the HR and payroll sides. We have collected the most important points you should start preparing for in connection with the turn of the year.
Fringe benefit system
- Keep track of legislative changes, especially the annual limits for tax-free benefits, which shall be updated by 2026 in line with the minimum wage.
- In the fringe benefit system:
- update the limits affected by the change in minimum wage,
- if a new element is introduced, add it to the list of selectable benefits and update the internal fringe benefit policy.
- It is recommended to inform employees about the new rule:
- Cold food can be purchased with the SZÉP card between December 1, 2025 and April 30, 2026.
Updating forms and policies
- Review internal policies, declarations, and forms.
- Update them in accordance with new laws and legislative changes.
Discontinuation of AVDH
- After October 31, 2025, the AVDH document authentication function, previously available on various government-provided platforms, has been removed.
- Instead, the use of an electronic signature issued by a company providing qualified electronic signature certificates is required.
Changes to the social security booklet
- From January 1, 2026, the paper-based social security booklet will be discontinued and replaced with an electronic version.
- Employees will be able to access their own health record data (NEAK insurance periods, healthcare services) via Client Gate authentication.
- Through a dedicated interface, social security pay office will be authorized to access and retrieve their employees’ data.
- Paper-based social security booklets shall be handed over to the employee no later than when they leave the company, in a verifiable manner. It is advisable to inform the employee that they shall keep it until the end of the 5th year following the year in which they reach the statutory retirement age.
Beginning-of-year employee declarations (additional leave and tax allowances)
- Expansion of tax allowances from January 1, 2026: Mothers under 40 with two children will be exempt from personal income tax.
Carrying over vacation days to the following year
Depending on the situation:
- Continuous leave
- If the employee starts his/her leave in 2025 and carries over 5 days, they may continue taking them consecutively in 2026.
- Employment starting after October 1
- Vacation days may be carried over until March 31 of the following year.
- Serious economic event affecting the employer
- The employer may modify the timing for using vacation days.
- Individual agreement on carried-over additional leave (age-related extra leave)
- Additional leave may be taken until December 31 of the following year.
Minimum wage changes in 2026
- As of January 1, 2026, the expected amount of the minimum wage is HUF 322 800 gross, and the guaranteed wage minimum is expected to be HUF 373 200 gross – based on information published on kormany.hu.
- During the mandatory start-of-year administration:
- relating to all benefits linked to the minimum wage (e.g., tax-free thresholds, fringe benefit elements) the new amounts shall be adjusted during the fringe benefit selection process
- it is necessary to review the employee workforce to determine whether anyone’s contractual salary needs to be adjusted to this
Public holidays, transferred rest and working days in 2026
It is advisable to inform employees about these at the beginning of the year.
