To welcome the New Year, here we come with the Hungarian changes in Payroll regulations of the year 2021.

Minimum Wage in Hungary 2021

Currently, the amount of the minimum wage from 01 January 2021 is unknown. According to the Government Decree, the review of the minimum and the guaranteed minimum wage is continued despite the regulations of the Hungarian Labor Code.

Personal Allowance in Hungary 2021

Another change is that the Personal Allowance will be enforceable from the combined tax base. The allowance is in line with the actual minimum wage and its amount is the third of the minimum wage prevailing in the actual month. The allowance could be probated after the allowance of the mothers who are raising four or more children but before the First Married Allowance.

Health Service Contribution in Hungary 2021

For the Employees, who are non-insured, or in another title not entitled for health services or during the suspension of the Employment Relationship ( leave of absence without pay, unauthorized leave) the amount of the payable Health Service Contribution is 8000 HUF/Month and 270 HUF/Day from 1st of January in 2021.

Changes in the Vocational training Contribution in Hungary 2021

The provisions of the Vocational training Contribution are moved into the Vocational Training Act from 01.01.2021. According to the Law LXXX. year 2019, the base of the Vocational training Contribution is the same as the base of the Social Contribution Tax. According to this change the in-kind benefits, other determined benefits, representations, business gifts, voluntary fund services are also subject to the 1,5% Vocational training Contribution.

Taxation of Szép-Card benefits in Hungary 2021

Between 1st of January and 30th of June in 2021, according to the temporary Law modification of LVIII. 2020, the SZÉP Card benefit are considered as an in-kind benefit until the following limits, differently from the PIT Law:

  • yearly maximum 400.000 HUF for accommodation sub-account
  • yearly maximum 265.000 HUF for hospitality sub-account
  • yearly maximum 135.000 HUF for leisure sub-account

Between 1st of January 2021 and 30th of June 2021, the yearly limit continues to be 800.000 HUF (in the case of financial institutions: 400.000 HUF).

It is important to pay attention – in case of the yearly limits – to the benefits which were given in the previous Employment Relationships from the 1st of July, 2021. In addition, each employment relationship will have again the 450.000 HUF limit from this date, above this limit, the benefits will be qualified as „other defined benefits”

The lower limit of contribution payment in Hungary 2021

From the 1st of January, the range of employees for whom the contribution supplement does not have to be paid will be extended retroactively, and employees on maternity leave will be included as well. Previously paid contributions can be settled by self-revision.

As the new Social Security Law says – into force from 1st of July – there are some significant changes in contributions, paid after part-time employees. For those insured who are standing in an employment relationship according to paragraph (6. § (1) part a), the contribution must be paid after the 30 percent of the minimum wage.

The law modification application came into force from the 1st of September 2020.

The lower limit of contribution payment does not need to be applied in the following cases:

Childcare Fee, Child home care allowance, Adoption fee, Child home care allowance, Child raising support, Care allowance and for children who study in public education, vocational training institution or highly education in the daily method.

Maternity leave (CSED) in Hungary 2021

The amount of Maternity leave (CSED) will be 100% (instead of the earlier 70%) which has to be applied according to the entitlements existing on the 1st of July.

Sick Certification in Hungary 2021

A new sick certification will be used about the incapacity of work instead of the „pink paper” from 01.01.2021. The sick leaves which are happening during the Pandemic situation do not have to be given in paper form by the doctor, it could be forwarded via e-mail.


We hope that you found our summary helpful. If you need further information, please do not hesitate to contact our colleagues.

In the meantime, please also check out our other materials on taxation matters.