Minimum wage increase December 2023

Dear Client,

please allow us to inform you briefly about the most significant changes of the minimum wage increase described by the Government Decree.

According to the Government Decree 508/2023 (XI.20) published on 20.11.2023, the mandatory minimum wage and the guaranteed minimum wage will increase from 01.12.2023.

- the gross wage of workers on the minimum wage will be HUF 266.800/month for an 8-hour working day

- the guaranteed minimum wage will be HUF 326.000/month

With the December minimum wage increase, the following mandatory items will be modified, which are linked to the minimum wage in force on the first day of the month in question

  • the basis of social contribution tax for full-time self-employed individuals and partnerships will change to HUF 300.150 / HUF 366.750 per month due to the 112.5 % multiplier;
  • in the case of other employment relationships (e.g. commission), the individual becomes insured if his/her income forming the basis for contributions for the month in question reaches 30% of the minimum wage, i.e. HUF 80.040 (or one thirtieth of this amount per calendar day). At the same time, the minimum contribution limit will also become HUF 80.040/month;
  • in the case of simplified tax contribution for artist, athletes (EKHO), the part of the salary above HUF 266.800 can be taken into account for the EKHO declaration;
  • tax-free advance on wages, if paid in December 2023 is: 5 * HUF 266.800 = HUF 1.334.000, and the maximum duration is 6 months;
  • the amount of public tax related to the simplified employment is HUF 2.700/day.

The regulation provides for a different effective date for benefits, allowances and contributions whose amount is determined on the basis of the minimum wage (e.g. sick pay, Childcare allowance). For these, the new amounts will only apply to the amount for January 2024.

Takács Gabriella, HR consultant

Gubicza Krisztina, Tax expert