Minimum wage 2025
As of 1 January 2025, the new gross minimum wage is HUF 290.800 and the guaranteed gross wage minimum is HUF 348.800.
It is important to note that starting 1 January 2025, adjustments to wages and withdrawals must be made for January salaries where applicable, including considerations for part-time employment where proportional modifications must be made.
Changes to personal income tax (PIT) allowance
Allowance for young people under 25
Young people under the age of 25 can reduce certain types of income included in their consolidated tax base using the youth tax allowance. This allowance can apply to wages, contractor fees, income from agricultural activities, income determined under simplified flat-rate taxation rules for single-member businesses, or entrepreneurial withdrawals. In 2025, the amount of the allowance is HUF 656,785 per eligible month. Employers or payers will automatically apply this allowance unless the employee submits a declaration requesting its partial or complete exclusion.
Please note, only individuals who wish to partially or fully waive the allowance should complete the declaration.
Family tax allowance
From 1 January 2025, there are no changes compared to the previous rules. The family tax allowance reduces the tax base per eligible dependent and per month, depending on the number of dependents:
- for one dependent by HUF 66,670,
- for two dependents by HUF 133,330 per dependent,
- for three or more dependents by HUF 220,000 per dependent.
From 1 January 2025, for a dependent child who qualifies as permanently ill or severely disabled, the monthly amount of the allowance can be claimed in an amount increased by HUF 66,670 per eligible month.
From 1 July 2025, the amount of the allowance will increase, meaning that the gross family tax allowance deductible from the tax base—depending on the number of dependents—will be per eligible dependent and per entitlement month as follows:
- for one dependent: HUF 100,000 (instead of HUF 66,670)
- for two dependents: HUF 200,000 per dependent (instead of HUF 133,330)
- for three or more dependents: HUF 330,000 per dependent. (instead of HUF 220,000).
From 1 July 2025, for a dependent child who qualifies as permanently ill or severely disabled, the monthly amount of the allowance can be claimed in an amount increased by HUF 100,000 per eligible month. (instead of HUF 66,670)
Allowance for mothers with four or more children (NÉTAK)
From 1 January 2025, mothers raising four or more children are still eligible for tax exemption by reducing their consolidated tax base. This allowance is available to biological or adoptive mothers raising four or more children who are either eligible for child benefit for the children they are raising, were eligible for child benefit for at least 12 years, or whose eligibility ended due to the death of a child, provided the total number of eligible children reaches four. The tax exemption does not automatically apply to all payment categories, such as income from property rentals, dividends, income under the EKHO or KATA systems, etc. Mothers who have already submitted a declaration in 2024 to continue the allowance without interruption (valid until revoked) do not need to submit a new declaration for 2025. However, those who have not yet done so will need to provide a new declaration for 2025.
Personal allowance
The personal allowance remains a tax base deduction. This means that eligible individuals can reduce their consolidated tax base by an amount equal to one-third of the minimum wage, rounded to the nearest 100 forints, which will amount to 96,900 forints as of 1 January 2025. The eligibility criteria remain unchanged.
Allowance for mothers under 30
From 1 January 2025, young mothers aged 25 and above will be eligible for a tax base reduction if they qualify for the family allowance for their biological or adopted child, or for a fetus. The allowance applies to mothers under 30 if their eligibility for the family allowance first arises after 31 December 2022, and before the day they turn 30. The amount of the allowance for mothers under 30 is capped at the national average gross income per entitlement month, which is HUF 656,785 in 2025, resulting in tax savings of 98,518 forints per month.
Amount of health care contribution
The monthly amount of health care contribution is HUF 11,800/month, and HUF 390/day as of 1 January 2025.
Minimum contribution threshold: The minimum contribution threshold for employees (Section 27 (2) of the Social Security Act) is 30% of the minimum wage applicable on the first day of the current month, i.e. from 1 January 2025, minimum individual health care contribution and social contribution tax are payable on HUF 87,240.
Fringe benefits
Favourable social taxes on fringe benefits remain unchanged from 1 January 2025. On fringe benefits 28% social taxes are payable (social contribution tax and PIT). The part exceeding the amounts subject to favourable rates qualifies as 'certain defined benefit’ subject to 33.04% charges payable by the employers
- SZÉP card benefits: the accommodation sub-account continues to function as a sub-account of the SZÉP card. The tax liability is adjusted to the recreational budget, which remains unchanged at HUF 450,000/year. The part exceeding the yearly recreational budget qualifies as 'certain defined benefit'.
A new sub-account called "Active Hungarians" linked to SZÉP card payment accounts is available from 2025. Benefits provided by employers within the specified limit will be taxed as fringe benefits and can be used for services related to an active lifestyle. The total specified limit, even from multiple providers, may not exceed HUF 120,000 per year in total. For the Active Hungarian sub-account the employee is required to make a statement.
Please read our blog post on the SZÉP card rules effective in 2025.
- Housing benefit: A housing benefit given by an employer to an employee under 35 is taxed as a fringe benefit up to the limit of the specified amount. The benefit can be used by the employee for paying rent or repaying a housing loan. The annual limit for the housing benefit is HUF 1,800,000, provided the employment relationship lasts for the entire year. The last month to be considered is the one when the employee turns 35 years old.
- As of 1 January 2025, three times a year, private individuals (not only employees, but also any other person) may be given small gifts, the value of which may not exceed 10% of the minimum wage (i.e. HUF 29,080 from 1 January 2025) per gift. 1.18 times the gross value of the gift will be subject to 15% PIT and 13% social contribution tax.
- From 1 January 2025, entry tickets or passes to zoos provided free of charge or at a discount by a payer to a private individual are tax-exempt for amounts not exceeding the minimum wage during the tax year.
- Also, contributions provided by employers to employees for repaying or prepaying Student Loan 2 obligations are tax-exempt, regardless of the amount.
Social contribution tax (SZOCHO) and KIVA
- The social contribution tax rate is 13%.
For the social contribution tax allowance related to specialized and dual training, a change has been introduced: if the employee participates in specialized training at his own employer, the allowance can be claimed for a maximum of 12 months for the same employer and the same employee. The eligibility for the allowance is subject to a mandatory examination requirement—the employee must pass a professional exam no later than during the second examination period following the completion of the specialized training. This new rule applies to training programs starting after 31 December 2024.
- The KIVA rate is 10%.
Tax allowance for labour market entrants
As of 1 August 2024, the tax credit for labour market entrants has been available for the employment of nationals of non-EEA countries bordering Hungary (Ukraine, Serbia). In the first year of employment, the benefit is the amount of the wage, but no more than the minimum wage, and in the next six months of employment it is the amount of the wage, but no more than half of the minimum wage, so that this amount is not subject to the social contribution tax. The employer is also entitled to the allowance for the entire month in which the first year or the eighteenth month of the eligible employment ends. A labour market entrant is defined as someone who, according to data available to the tax and customs authority, had an insured employment relationship for no more than 92 days within the 365 days preceding the start of their eligible employment.
Simplified employment EFO
From 1 January 2025, the minimum hourly wage for employees under simplified employment is set at HUF 1,421. For positions requiring at least secondary education or intermediate vocational qualifications, the minimum hourly wage is HUF 1,744. The exempt amount (i.e. the amount up to which income from simplified employment is exempt from personal income tax) remains at 130% of the daily minimum wage or guaranteed wage minimum. In 2025, this amounts to HUF 17,394 per day for jobs requiring no qualifications, based on the minimum wage, and HUF 20,852 per day for jobs requiring qualifications, based on the guaranteed wage minimum.
The restriction on the number of days an individual can work under simplified employment has changed. From 1 July 2025, an individual can work a maximum of 120 days per year under simplified employment.
Employers must pay special attention to the number of simplified employment workers allowed in proportion to their permanent workforce.
Public charges payable by the employer pertaining to simplified employment
From 1 January 2025 public charges payable by the employer for simplified employment are tied to the minimum wage, amounting to HUF 2,900 per person per day for casual work; HUF 1,500 per person per day for agricultural or touristic seasonal work.
From 1 February 2025 public charges payable by the employer are increased, amounting to HUF 4,400 per person per day for casual work; HUF 2,200 per person per day for agricultural or touristic seasonal work.
GYED, GYES, rehabilitation contribution
- The maximum GYED amount is gross HUF 407,120.
- The graduate childcare benefit (diplomás GYED) for bachelor's degree holders is 70% of the minimum wage valid on the starting day of eligibility. In 2025, this equals HUF 203,560.
- The amount of childcare allowance (GYES) remains unchanged in 2025 at HUF 28,500, the same as in 2024.
- The gross maximum of daily sick pay is HUF 19,387, tied to the minimum wage.
- The amount of rehabilitation contribution in 2025 is HUF 2,617,200 per year.
Support for persons with reduced work capacity in 2025
The contribution relief available for employing individuals with reduced work capacity increases from 1 January, in line with the minimum wage. The relief applies up to twice the minimum wage, which is a maximum of HUF 581,624. Individuals with specific conditions, such as musculoskeletal disabilities, diabetes, lactose and gluten intolerance, are eligible for an amount equal to 15% of one-third of the minimum wage. In 2025, this amounts to HUF 14,535 per month.
Documentation for employees with reduced work capacity is recorded based on the issued decisions. If the condition is not permanent, a review may be required in 2025 to extend the decision A lapse in continuity of the decision could impact the calculation of benefits and the rehabilitation contribution. Employers are advised to pay close attention to this matter.
Paternity leave
The paternity leave time has been doubled. In the event of a child’s birth, fathers are entitled to ten working days of leave (hereinafter: paternity leave) no later than the end of the fourth month following the child’s birth (previously the second month),or in case of an adoption, after the adoption is finalized by a legally binding decision. This leave can be taken in a maximum of two parts, at the time requested by the employee. Employees are also entitled to paternity leave if their child is stillborn or passes away.
Exemption from work
From 1 January 2025, employees will be exempt from their obligation to be available and perform work for up to two hours to participate in elections for members of Parliament, members of the European Parliament, local municipality representatives, mayors, national minority local representatives, or local or national referendums. This exemption applies if the employee’s scheduled regular or extraordinary working hours exceed eight hours on the given day, or for the time specified in the employment rules applicable to them.
New default penalty
Starting from the summer of 2025, employers must prepare for a new default penalty that will affect procedures aimed at clarifying insured employment relationships. The new legislation aims to ensure compliance with employment and reporting obligations and increase the accuracy of reporting processes. The new rules provide for severe penalties depending on the seriousness of the offence.
