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Significant minimum wage increase confirmed in Hungary

From 2022 the new general gross minimum wage will be HUF 200,000 (approximately EUR 550).

According to the announcement made on 4 November 2021, the gross general minimum wage would be increased to HUF 200,000 (per month), while for more qualified positions (jobs requiring at least a secondary education or a secondary vocational qualification) the so called guaranteed wage minimum will reach gross HUF 260,000 (per month). In both cases the reference minimum wages apply to full-time employees (at least 36 working hours a week).

As part of the minimum wage package deal, the contributions imposed to the employers will be cut with a sum of 4%: social contribution tax is decreased from 15.5% to 13% and former vocational training contribution of 1.5% will be abolished.

The announced changes also imply that while the net amount of the minimum wage and guaranteed wage minimum amounts available for the employees will increase with almost 20%, the contributions paid by the employers will be actually slightly lower than were in 2021:

 

2021[1] vs. 2022

Minimum wage

Guaranteed wage minimum

2021

2022

2021

2022

Gross amount

167 400 HUF

200 000 HUF

219 000 HUF

260 000 HUF

Employee

Income tax

15,0%

25 110 HUF

30 000 HUF

32 850 HUF

39 000 HUF

Social security

18,5%

30 969 HUF

37 000 HUF

40 515 HUF

48 100 HUF

Sum

33,5%

56 079 HUF

67 000 HUF

73 365 HUF

87 100 HUF

Net amount

111 321 HUF

133 000 HUF

145 635 HUF

172 900 HUF

Employer

Social contribution
tax

13,0%[2]

25 947 HUF

26 000 HUF

33 945 HUF

33 800 HUF

Vocational training contribution

0%2

2 511 HUF

0 HUF

3 285 HUF

0 HUF

Sum

28 458 HUF

26 000 HUF

37 230 HUF

33 800 HUF

 

It also follows that for the amounts (e.g. childcare allowance, minimum contributions by self-employed and companies, various thresholds) that are linked to the minimum wage will be the increased amounts should be considered from 2022, accordingly.

 

[1] Effective only as of 1 February, 2021.

[2] As of 1 January, 2022.