Changes of taxation and social contributions 2024

Dear Client,

please let us briefly inform you about tax changes related to personal income tax and contributions for 2024.


Minimum Wage

minimum wage:  HUF 266.800 (gross)

guaranteed minimum wage:  HUF 326.000 (gross)


Health service contribution

The amount is HUF 11.300/month (HUF 380 daily), payable by the individual for each period not covered by insurance.


Simplified employment

From 2024, the special tax on simplified employment will be a social contribution tax, but the tax will continue to be paid according to the rules of the Simplified Employment Act and will not be subject to the social contribution tax relief.


Social contribution tax

The social contribution tax rate is 13%, the upper limit of the salary is HUF 266.800 x 24 = HUF 6.403.200.

The range of benefits available to those entering the labour market is modified. It will only be available for workers of Hungarian nationality, EEA nationals and nationals of non-EEA countries bordering Hungary (Ukraine, Serbia).


Personal benefit

The monthly rate is 5% of the minimum wage, i.e. HUF 13.335. Eligible months are those in which the disability lasts for at least one day, as confirmed by a statement or document.

A severely disabled person will continue to be considered as a person who, for the purposes of the reduction of the taxable amount of the consolidated tax base, suffers from a disease listed in Government Decree 335/2009 on diseases that constitute severe disability and is in receipt of a disability allowance or invalidity allowance. A medical certificate or a declaration of a disability allowance or disability pension may be required to claim the benefit.



The procedure for declaring and paying fringe benefits and certain defined benefits changes from monthly to quarterly. Contributions will have to be declared and paid in the quarter in which the month of the benefit falls.


Non-wage benefits

Széchenyi Card (SZÉP card)

The employer (payer) is required to pay 15% personal income tax and 13% social contribution tax on this benefit (28%)


Certain determined benefits

After the 1.18 times multiplied amount of these benefits the employer also has a 15% personal income tax, 13% Social Contribution Tax.

  • The part of Szép card which is above the limit
  • Low-value gifts of up to 10% of the minimum wage per year
  • Employer contribution transferred to voluntary pension fund and health fund
  • Taxable income given by the employer based on meals or other services related to business travel
  • After 20% of company mobile phone usage
  • Such taxable income given through free or discount goods, services, for which more than one individual is entitled at the same time and the employer cannot determine the acquired income of the individuals. Furthermore, incurred costs related to free events, organized for more than one individual (including business partners too), if it is ascertainable from the circumstances of the benefit, that it is predominantly aimed for catering, leisure program (coffee, tea, juice consumption of own employees is also included) (Point b.) of Article 3. of 70§ of Personal Income Tax) 


Tax free benefits

  • Safety glasses benefit
  • Cost of kindergarten, nursery
  • Wine products as defined in the law (bottled, with a protected designation) gifted by the giver as a business gift or a gift of small value in the context of catering, with the proviso that the giver must keep records showing the source of the purchase and the way in which the product was used
  • Ticket for sports events and Cultural services up to the amount of the minimum wage
  • Commuting to work by own car min. 18 HUF/km max. 30 HUF/km



Personal income tax

Tax rate is uniformly 15%, which is applicable not only for income included in the consolidated tax base, but income acquired by every other legal title (e.g. interest, dividend, property sale).

From 01.01.2020 those mothers who were entitled to family allowance after 4 children (for at least 12 years) will exempt from the payment of personal income tax (after the labour income) lifelong, regardless of how old the children are.


Social contribution tax

Social contribution should be paid after the following payments:

  • Fringe benefit
  • Certain defined benefits which are not qualifying as fringe benefit
  • Income from interest on loans
  • Income extracted from the company
  • Income from securities lending
  • Dividends
  • Entrepreneurial dividend base
  • Income from exchange gains


Small business tax

Small business tax rate is still 10%.


Tax reliefs

Family tax reliefs

The tax base reducing tax relief can be claimed without an income limit

  • in case of one child HUF 66.670
  • in case of two children HUF 133.330
  • in case of three or more children HUF 220.000 after every dependent child
  • for a dependent beneficiary who is a permanently ill or severely disabled person, the family allowance is HUF 66.670 per month higher, so the amount of the allowance for these children is HUF 10 000 higher in tax terms.


Tax reliefs for those who get married for the first time

Tax base reducing tax relief is HUF 33.335 /month. One is entitled for this from the first day of the following month of the wedding, through 24 months.


Income tax benefit for mothers under the age of 30

A young mother is entitled to this benefit if she becomes entitled to the family allowance after 31 December 2022 in respect of her unborn child, a child born to her by blood or an adopted child.

The benefit is payable from the month following the month in which the young mother reaches the age of 25 at the earliest and is payable up to the last month of the year in which the young mother reaches the age of 30.


Personal income tax exemption under the age 25

An individual under the age of 25 (hereinafter: young person) may consider the income earned from work as a tax-deductible benefit up to a certain value limit, if his / her monthly income does not exceed HUF 499.952 gross.

If the young person's income exceeds the average earnings, then the personal income tax has to be paid only after the difference.

The discount is valid for the months before the young person has reached the age of 25.


Order of application of tax benefits

  1. Benefit for mothers raising four or more children
  2. Personal income tax exemption for under the age 25
  3. Benefit for mothers under 30
  4. Personal benefit
  5. Benefit for first married couples
  6. Family benefit

Budapest, 15 January, 2024


Takács Gabriella, HR advisor

Gubicza Krisztina, chartered tax expert