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[1] vs. 2022			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.