The mandatory minimum amount of the basic wage (minimum wage) established for a full-time employee for full-time work from 1 January 2025, is HUF 290,800 per month, HUF 66,860 per week, HUF 13,380 per day, and HUF 1,672 per hour.

The guaranteed minimum wage established as the basic wage for employees in positions requiring at least secondary education or secondary vocational qualifications for full-time work from 1 January 2025, is HUF 348,800 per month, HUF 80,190 per week, HUF 16,040 per day, and HUF 2,005 per hour.

From a tax law perspective, each regulation must be individually examined to determine whether the mandatory minimum wage amount in effect on the first day of the year or the minimum wage in effect on the first day of the month should be used to determine tax and contribution obligations. With the modification of the minimum wage effective 1 January this year, these two dates coincide.

Personal income tax

According to the Personal Income Tax Act (PIT Act.) the minimum wage—the mandatory minimum monthly wage in effect on the first day of the year—is applied, unless otherwise specified in the PIT Act.

The annual minimum wage is twelve times the mandatory minimum monthly wage in effect on the first day of the year.

Based on these provisions, the values to be determined using the minimum wage are as follows:

• When calculating the monthly amount of the personal allowance, one-third of the minimum wage in effect on 1 January 2025 (HUF 290,800), rounded to the nearest hundred forints, can be considered (HUF 96,900).
• The payer can give gifts of negligible value three times a year, each worth HUF 29,080 as a specified benefit.
• The payer can give a gift worth no more than 25% of the minimum wage (HUF 72,700) per person as a specified benefit during hospitality or leisure events organized for multiple individuals.
• For employees working remotely, the amount of reimbursement that can be accounted for as an expense without proof, related to remote work, can be up to HUF 29,080. If the employee does not work remotely for the entire month, the monthly amount can be proportionally accounted for based on the days spent working remotely.

For small-scale agricultural producers in 2025

• The annual amount of tax-free income for agricultural producers is HUF 1,744,800.
• The annual revenue threshold for flat-rate taxation is HUF 34,896,000.
• For flat-rate taxed agricultural producers, income of HUF 1,744,800 is tax-free.

For flat-rate taxed private entrepreneurs in 2025:

• The annual revenue threshold for flat-rate taxation is HUF 34,896,000, and for those exclusively engaged in retail activities, it is HUF 174,480,000.
• Income of HUF 1,744,800 determined as a flat rate is tax-free.

Social security contributions

According to Act on entitlements to social security benefits and on funding these services the minimum wage is the mandatory minimum wage in effect on the first day of the month. From January 2025, social security contributions are to be calculated based on the minimum wage of HUF 290,800 or the guaranteed minimum wage of HUF 348,800 for activities requiring vocational qualifications.

The contribution payment obligation of full-time private and partnership entrepreneurs is also tied to the minimum wage and the guaranteed minimum wage valid on the first day of the month in question.

The lower limit for contribution payment for employees in employment is 30% of the minimum wage in effect on the first day of the month. From 1 January 2025, social security contributions and social contribution tax must be paid based on HUF 87,240.

In the case of agency contract, the establishment of the insurance relationship must examine whether the monthly income from this activity, which constitutes the basis for contribution, reaches 30% of the minimum wage in effect on the first day of the month.

Social contribution tax

According to the Social Contribution Tax Act, the minimum wage is the mandatory minimum monthly wage in effect on the first day of the year (HUF 290,800), except for the minimum wage mentioned in certain provisions of the Act concerning private and partnership entrepreneurs.

For private and partnership entrepreneurs, the contribution base is the guaranteed minimum wage for full-time work in effect on the first day of the month, if the main activity requires at least secondary education or vocational qualifications, otherwise the mandatory minimum monthly wage in effect on the first day of the year. From January 2025, the obligations must be determined based on the minimum wage of HUF 290,800 and the guaranteed minimum wage of HUF 348,800.

Regarding social contribution tax, tax allowances must also be calculated based on the minimum wage in effect on the first day of the year, as well as for determining the upper limit of social contribution tax payment (24 times the minimum wage), such as in the case of dividends.

Rehabilitation contribution

The rehabilitation contribution amount must be calculated by companies required to pay the contribution as follows: nine times the mandatory minimum monthly wage on the first day of the year per person per year. In 2025, this amount is HUF 2,617,200 per person per year.

Small business tax

For companies choosing the small business tax (kiva), the law ties the amount of allowances that can be claimed for employees to the minimum wage. In this case, the minimum wage is defined by Act on the Fixed-Rate Tax of Low Tax-Bracket Enterprises and on Small Business Tax the minimum wage regulated by the Social Contribution Tax Act which means the minimum wage in effect on the first day of the month.

Corporate tax

The minimum wage valid on the first day of the tax year is the reference point for the tax base reduction applicable for dual vocational training as defined in Section 7 (1) point i) and for the employment of persons with changed working capacity as defined in point v) of the Corporate Tax Act.

Simplified employment

According to Act on Simplified Employment in the case of simplified employment, the minimum wage is at least 85% of the mandatory minimum wage, and for positions requiring vocational qualifications, at least 87% of the guaranteed minimum wage.

Based on this, the minimum hourly wage for simplified employment is HUF 1,422, and for guaranteed minimum wage, it is HUF 1,744 per hour. Therefore, the minimum daily wage for simplified employment is HUF 11,368 for minimum wage and HUF 13,952 for guaranteed minimum wage.

For simplified employment, the employer's burdens are tied to the minimum wage for employment relationships established from 1 July 2022. The rate of the employer's burden is a certain percentage of the minimum wage in effect on the first day of the given month (rounded to hundred forints) for each calendar day of the employment relationship.

From 1 February 2025, the amount of the contribution tied to the minimum wage will increase. The following table shows the changes in the rate and amount of the contribution.

The increased public burden amount must be applied to employment relationships established under the Act on Simplified Employment after 1 February 2025, that is, from 2 February 2025, or thereafter.

According to the amendment of the Act on Simplified Employment, starting 1 July 2025, the calculation of the number of days worked under simplified employment will change, and the maximum duration of casual work and seasonal work will be limited annually.

Under the previous regulation, it was possible to work 120 days per year in simplified employment (seasonal work, occasional work) at multiple employers, and the days did not accumulate.

From 1 July 2025, if an employee establishes multiple employment relationships for seasonal work or occasional work, the cumulative duration of these employment relationships cannot exceed 120 days in a given calendar year.

This change requires examining this legal condition from the employee's perspective.

The tax authority will reject the employer's notification if the number of days of employment exceeds 120 days per year.

To ensure this, before establishing an employment relationship for simplified employment, the employer will have the right to know and handle the natural person's tax identification number, social security number, and name. The tax authority will provide electronic query options for this information.

The rule that an employee's employment relationship within simplified employment cannot exceed 120 days annually for agricultural and tourism seasonal work and 90 days annually for occasional work remains applicable.