Social security contributions in detail
Hungarian social security covers, for example, illness, maternity, unemployment, disability and pension. Both the employer and employee must pay contributions.
The employee must pay:
- 10% for pension insurance;
- 7% for healthcare insurance;
- 1.5% labour market contribution.
These are payable based on the employee’s gross monthly salary. There is no overall cap on contributions. The employer is required to withhold the above contributions from the employee’s salary and pay directly to the Hungarian tax authority. The employee will receive his or her net salary from the employer after the deduction of social security contributions and a deduction for personal income tax.
The employer must pay:
- 19.5% social contribution tax;
- 1.5% vocational training contribution.
All of the above contributions are payable monthly in arrears by the 12th day of each month. Note that there is no lower threshold for payments and no overall cap.
Author: CLV Partners
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.