Do you have foreign employees at your Hungarian company? Then make sure to check out the key updates that affect HR, payroll, and employee benefits in 2025. Consult your accountant or payroll specialist to see how to apply relevant changes at your business.
1. Minimum wage increase
Affects all employees, not just foreign nationals. If salary updates are required for your employees, ensure their labor contracts are revised. If salaries remain above the minimum wage, you may still consider a raise to follow inflation.
As of January 1, 2025, both types of minimum wage increase as follows:
- Minimum wage: HUF 290,800
- Guaranteed minimum salary: HUF 348,800
2. Tax benefits not available to third-country nationals
From January 1, 2025, third-country nationals (except for Serbian and Ukrainian nationals) are no longer eligible for key tax benefits, including:
- Family tax benefits
- Newlywed tax benefits
- Under-25 tax benefits
3. Family Tax Benefits: Doubling in Two Stages
If you have employees who are not third-country nationals and are in Hungary with their families, they can probably take advantage of the family tax benefit. This is a tax benefit that decreases the employees tax base, and the benefit itself will be increased in two steps:
Stage 1 (From July 1, 2025):
- 1 child: HUF 100,000/month tax base reduction (up to HUF 15,000 saved)
- 2 children: HUF 200,000/month tax base reduction (up to HUF 60,000 saved)
- 3+ children: HUF 330,000/month tax base reduction (up to HUF 148,500 saved)
Stage 2 (From January 1, 2026):
- 1 child: HUF 133,340/month tax base reduction (up to HUF 20,000 saved)
- 2 children: HUF 266,660/month tax base reduction (up to HUF 80,000 saved)
- 3+ children: HUF 440,000/month tax base reduction (up to HUF 198,000 saved)
4. Fringe Benefits
Fringe benefits continue to be available to all employees. You can read an overview of the Hungarian fringe benefit system here. The notable changes in 2025 are the following:
SZÉP Card updates:
- Total yearly limit: increased to HUF 570,000
- New spending category: “Active Hungarians” pocket for sports-related services (HUF 10,000/month or HUF 120,000/year)
- Home renovation usage: up to 50% of SZÉP Card funds can be spent on items like furniture, construction materials, and hardware
New Housing Allowance:
- Available for employees under 35
- Amount: HUF 150,000/month or HUF 1.8 million/year
- Purpose: rent or housing loan repayment
- Tax Treatment: similar to SZÉP Card benefits
Entrance tickets:
Employers may provide tickets and passes for various events and services in three categories as a tax-free benefit. The yearly limit is the monthly minimum wage for each. These categories are the following:
- NEW: zoo entrance
- Cultural events and institutions, e.g. theater, museum, library
- Sport events, e.g. soccer match
5. Additional tax changes for individuals
While not strictly relevant for payroll, you and your employees might want to keep in mind the following changes.
Long-Term Investment Accounts (TBSZ):
Withdrawals from TBSZ accounts before the 5-year maturity will now incur social contribution tax starting in 2025.
Voluntary Pension Funds for Housing:
Voluntary pension funds accumulated by September 30, 2024 can now be used tax-free for housing purposes, including construction, purchase, renovation, or loan repayment.
Helpers is your one-stop-shop
For further information or assistance with these updates and with applying or communicating the new benefits, contact our HR or tax experts. Helpers provides comprehensive services to foreign-owned businesses operating in Hungary, including work permit application, payroll, HR support, and many other services that can help you make your business successful in Hungary. With 20 years of experience, we are confident we can help you find the solutions that best fit your needs.
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