EY Payroll Newsletter

Local Contact

Veronika Oláh

07 Jan 2025

Changes in the minimum wage and guaranteed minimum wage

The minimum basic wages have changed as follows from 1 January 2026:

The mandatory minimum basic wage (minimum wage) established for a full-time employee, when applied as a monthly wage, will be HUF 322,800 gross.

The guaranteed minimum wage established as the basic wage for a full-time employee in a job requiring at least secondary education or secondary vocational training, when applied as a monthly wage, will be HUF 373,200 gross.

For performance-related pay, if the performance requirements are fully met and the work is full-time, the full-time employee’s mandatory minimum monthly salary is (pure performance wage, or a combination of guaranteed wage and performance-related variable pay):

HUF 322,800 gross in the case of minimum wage
HUF 373,200 gross in the case of guaranteed minimum wage

For part-time work, the monthly, weekly and daily rates have to be reduced in proportion to the working hours in question.

For employed individuals, the minimum contribution payment liability (30% of the minimum wage) is HUF 96,840 per month in 2026.

Changes in the minimum wage also have an impact on the simplified contribution to public revenues (EKHO): the part subject to standard tax liability is HUF 322,800 gross a month from January based on the new minimum wage. However, the upper limit of eligibility to apply the simplified contribution is not affected.

The rehabilitation contribution rate from 1 January 2026 is nine times the mandatory minimum basic wage established on the first day of the current year, i.e. HUF 322,800 x 9 = HUF 2,905,200 per person per year.

The personal allowance tax base rate from 1 January 2026 is one-third of the minimum wage per month of eligibility, rounded to one hundred HUF, which is HUF 107,600 a month (this means a tax saving of HUF 16,140 per month for the individual).

Changes in the amount of health insurance cash benefits with the increase in the minimum wage from 1 January 2026:

The childcare benefit maximum (70% of twice the minimum wage) is HUF 451,920 gross per month.
The amount of childcare benefit for students enrolled in bachelor's level higher education, advanced vocational programs, higher education degree programs or postgraduate specialization programs is 70% of the minimum wage; that is, HUF 225,960 gross per month, one thirtieth of which is HUF 7,532 per calendar day.
The childcare benefit for students enrolled in master's, undivided or doctoral programs is 70% of the guaranteed wage minimum, i.e. HUF 261,240 gross per month, one thirtieth of which is HUF 8,708 per calendar day.
The upper limit of the adoption allowance is equal to the maximum amount of childcare benefit: HUF 451,920 gross per month.
Maximum sick pay amount: the daily sick pay amount may not exceed one-thirtieth of twice the minimum wage, which is HUF 21,520 per calendar day.

As a result of the increase in the minimum wage, the amount of available funds will increase for a number of benefits:

Telework contribution (up to 10% of the minimum wage is tax free) – HUF 32,280 per month
Admission to sporting events is tax exempt up to HUF 322,800 per year
Entrance fee for cultural services is tax exempt up to HUF 322,800 per year
Zoo entry is tax free up to HUF 322,800 per year
Gifts of small value taxed as certain specified benefits (3 x HUF 32,280 per occasion annually)

Gross national average wage

The gross national average wage to be applied in 2026 is HUF 715,765.

Healthcare service contribution amount

Effective 1 January 2026, the monthly healthcare service contribution liability will be HUF 12,300. For partial months, the daily amount will be HUF 410.

Tax allowances for mothers with two, three or more children and those under 30

The above-mentioned allowances are governed by separate laws (including, from 2026, the allowance for mothers under 30). For issues not regulated by these laws, the provisions of the Personal Income Tax Act and the Act on Tax Procedures apply.

Allowance for mothers raising three or more children

Effective 1 October 2025, this allowance is governed by Act XV of 2025 on the allowance for mothers raising at least three children. Under this law, eligible mothers may reduce their consolidated tax base, as defined in the Personal Income Tax Act, by applying this allowance.

Mother raising three or more children

A woman qualifies as a mother raising three or more children if, as a biological or adoptive parent, she is entitled to:

family allowance for the child she is raising, or
is no longer entitled to family allowance for the child she is raising, but she was eligible for at least 12 years.

When determining eligibility, a child for whom the entitlement to family allowance ceased due to the child’s death must also be taken into account.

A mother who has adult children is also entitled to the allowance if she raised the children in her own household for at least 12 years and would have been entitled to family allowance under the provisions of Act LXXXIV of 1998 on Family Support.

For example, if a mother has three children who are now adults and she would have been eligible for at least 12 years under the Act on Family Support, she can claim the allowance for mothers raising three children.

To calculate the family allowance amount due to the mother, the following children must also be considered:

A child for whom the mother is not entitled to family allowance because the child, as a person with a disability, receives care in a social institution, provided that the child has not been placed in foster care by the public guardianship authority and the applicant for family allowance maintains contact with the child.
A child for whom neither the mother nor the director of a social institution is currently entitled to family allowance, but such entitlement existed for at least 12 years in total for either or both of these individuals.

Eligibility for the allowance begins on the first day of the month in which, on any day, the individual qualifies as a mother raising three children, and ends on the last day of the month in which she no longer qualifies for the entire month.

If the individual qualifying as a mother raising three children is not eligible for the allowance for the entire tax year, and her income from non-dependent activities included in the consolidated tax base during the eligibility period cannot otherwise be determined, it must be calculated as the proportionate part of her annual income earned under this title, based on the number of months in the eligibility period.

Allowance for mothers under 40 raising two children

From 1 January 2026, the details of the allowance for mothers raising two children will no longer be governed by the Personal Income Tax Act, but by Act XIV of 2025 on the allowance for mothers raising two children.

From 2026 onwards, a mother raising two children may reduce her consolidated tax base under the Personal Income Tax Act by applying the allowance for mothers raising two children, provided that she has not yet reached the age of 40. The eligibility and detailed rules are the same as those described for mothers raising three children.

Schedule for introducing the allowance for mothers with two children

Starting 1 January 2026, the allowance for mothers raising two children will be introduced gradually over four years:

After 31 December 2025, mothers who have reached the age of 40,
after 31 December 2026, mothers who have reached the age of 50,
after 31 December 2027, mothers who have reached the age of 60,
and after 31 December 2028, all mothers raising two children will become eligible for the allowance, regardless of age, as follows:
- If a mother raising two children reaches the age of 40 after 31 December 2025, she can apply the allowance to any qualifying income earned after that date. For employment income, this applies to amounts accounted for periods following 31 December 2025.
- If a mother raising two children reaches the age of 50 after 31 December 2026, she can apply the allowance to any qualifying income earned after that date. For employment income, this applies to amounts accounted for periods following 31 December 2026. This does not apply if she was already entitled to claim the allowance earlier.
- If a mother raising two children reaches the age of 60 after 31 December 2027, she can apply the allowance to any qualifying income earned after that date. For employment income, this applies to amounts accounted for periods following 31 December 2027. This does not apply if she was already entitled to claim the allowance earlier.
- Regardless of age, from 31 December 2028 onward, the allowance can be applied to income earned after that date which qualifies for the allowance, and for employment income, to amounts accounted for after 31 December 2028.

Allowance for mothers under the age of 30

From 1 January 2026, the rules on the allowance for mothers under 30 will no longer be included in the Personal Income Tax Act but will be governed by Act XIII of 2025 on the Allowance for Mothers Under 30.

The allowance is now granted not only in respect of the child to be born. Under the current amendment, it also applies to existing children and covers the entire income, rather than being limited to the average wage. Detailed information on the types of income eligible for the allowance is provided in the section below.

For example, from 2026, a mother under 30 who had one child in 2022 will still be entitled to the allowance even if she does not have another child in 2026, provided she has not reached the age of 30.

Mothers under the age of 30

A woman qualifies as a mother under 30 if she reaches the age of 30 only after 31 December of the year preceding the tax year, and in the tax year she is entitled to family tax allowance under the Personal Income Tax Act in respect of her unborn child, biological child, or adopted child.

Eligibility for the allowance

A mother under the age of 30 is entitled to the allowance for mothers under 30 if:

She is eligible for family allowance under the Act on Family Support in respect of her child, and her spouse living in the same household, who is not entitled to family allowance, is also considered eligible in respect of their biological or adopted child. (A private individual who receives family allowance as the director of a children’s home, social institution, or juvenile correctional facility is not considered eligible.)

She is a pregnant woman and her spouse living in the same household is eligible for the family allowance in respect of the unborn child (from the 91st day after conception until birth).

For example, a mother who has not reached the age of 30 on 31 December 2025, and whose child is born in 2026, or who already has a child, can claim the allowance for mothers under 30 in 2026.

If eligibility for the allowance of mothers under 30 does not apply for the entire tax year, and the income earned during the eligible months from self-employment activities that are included in the consolidated tax base according to the Personal Income Tax Act cannot be determined otherwise, it should be calculated as the proportionate part of the annual income earned under this title corresponding to the eligible months.

The family tax allowance also remains available, because under the provisions of the Personal Income Tax Act, a mother under 30 can make a declaration to the employer or payer providing her income to apply the family allowance that cannot be claimed due to the lack of a tax base as a family contribution allowance.

Income subject to the allowance

For mothers raising three children, two children, and those under the age of 30, the following types of income may be deducted from the income included in the consolidated tax base earned during the eligibility period (in the case of employment income, the income accounted for the eligibility period):

Income earned during the eligibility period that qualifies as wages under the Personal Income Tax Act and is included in the consolidated tax base.
The total amount of income that does not qualify as wages but derives from activities other than self-employment under the Personal Income Tax Act (excluding any severance pay in excess of the statutory limit received upon termination of employment).
From income derived from self-employment activities under the Personal Income Tax Act:

The entrepreneurial withdrawal of private entrepreneurs applying taxation on entrepreneurial income; in the case of flat-rate taxation, on the income determined at a flat rate.
Income of agricultural primary producers from this activity.
Income from activities as a Member of the European Parliament.
Income from activities as a local government representative.
Income from activities as a statutory auditor.
Income from activities performed under a contract for work concluded by a private individual, not as a private entrepreneur, for remuneration.

The allowance does not apply to any other taxable income under the law that is not specifically listed above. For example, it does not apply to income from rental or accommodation services, income earned on other grounds, dividends and other separately taxed income, as well as income subject to simplified contribution to public revenues (EKHO).

Income qualifying for the first-time application of the allowance

The allowance for mothers raising three children can first be claimed on income constituting the allowance base and is earned after 30 September 2025. For employment income, this applies to amounts accounted for the period after 30 September 2025, and it takes priority over all other allowances.

It is important when the income included in the allowance base is paid and when it appears in payroll accounting. For example, if the amount of a target bonus awarded based on performance in the third quarter of 2025 or a reward related to a project completed in an earlier period is processed in payroll in October, then that amount can be included in the allowance base in October 2025 for mothers raising three children.

Eligibility period for the allowance

For mothers raising three children, mothers raising two children, and mothers under 30, eligibility for the allowance begins on the first day of the month in which, on any day, the individual qualifies as a mother of three children, a mother of two children (under 40 years of age in the case of two children), or a mother under 30, and ends on the last day of the month in which they no longer qualify for such status for the entire month.

If eligibility for the allowance does not apply for the entire tax year, and the income earned during the eligibility period from self-employment activities that are subject to the consolidated tax base cannot be determined otherwise, it must be taken into account as the proportionate part of the annual income earned under this title corresponding to the months of eligibility.

The allowance for mothers under 30 can be applied to income included in the allowance base that is earned after 31 December 2025, and, in the case of employment income, to income accounted for the period following 31 December 2025.

Claiming the allowance in the tax return

For mothers raising three children, mothers raising two children, and mothers under the age of 30, claiming the allowance requires submitting a tax advance declaration that must include:

the legal basis for eligibility for the allowance,
the names of the children and their tax identification numbers (or, if no tax ID is available, their personal identification details),
the date when eligibility began or ended, if the entitlement to the allowance did not exist for the entire tax year, and
the amount of the allowance.

Declaration on family contribution allowance

The family allowance is not lost for those concerned, because if a mother raising three children, a mother raising two children, or a mother under the age of 30 cannot claim the family tax allowance due to the lack of a tax base, they can make a declaration to have it applied as a family contribution allowance (to the employer or payer providing the income).

Eligibility of third-country nationals for family tax allowance, first married couples’ allowance, and the allowance for individuals under 25

Since 1 January 2025, the rules for applying the above-mentioned allowances to third-country nationals have changed. You can find the details here in Hungarian: Jogosultság határokon innen és túl - Adóalap-kedvezmények harmadik országbeli magánszemélyek számára

Increase in family tax allowance

In 2026, the family tax allowance will be twice what it was in 2024. (An earlier increase took effect in July 2025.)

The allowance deductible from the consolidated tax base will be as follows per eligible dependent, per month:

For one dependent: HUF 133,340
For two dependents: HUF 266,660
For three or more dependents: HUF 440,000

An extra 133,340 HUF per month can be added to the family tax allowance for each dependent considered permanently ill or severely disabled under the Family Support Act.

Order of claiming tax allowances

From 1 January 2026, the order of claiming tax base allowances will be:

Allowance for mothers under 30
Allowance for mothers raising four or more children, allowance for mothers raising three children, or allowance for mothers raising two children
Infant care benefit, child care benefit, and foster parent childcare benefit
Allowance for young people under 25
Personal allowance
First married couples’ allowance
Family tax allowance

If a mother raising children is entitled to allowances based on the number of children or to the allowance for mothers under 30 under multiple consecutive legal grounds throughout the year, the allowance for the entire year must be claimed under the legal ground applicable on the first day of the year, or, if there are several such grounds, under the one chosen by the mother.

In this case, there is no need to submit a new tax advance declaration or to split the income forming the basis of the allowance between different legal grounds. (For example, if a mother under 30 has two children, in 2026 she will be entitled to both the allowance for mothers under 30 and the allowance for mothers with two children, and she can choose between the two.)

Tax advance declaration

In the tax advance declaration, the individual must indicate whether they wish to claim the allowance for mothers with three children, two children, or those under the age of 30. The declaration must include the children’s names and their tax identification numbers (or, if unavailable, their personal identification details). For mothers under 30 who are expecting a child (or twins), the declaration must also include a statement confirming the pregnancy.

The following rules also apply to individuals claiming the allowance for mothers raising three children, mothers raising two children, or mothers under 30:

The employer or payer may not reduce the tax advance base of income eligible for the allowance by any other allowance. However, the individual can submit a tax advance declaration for the family tax allowance to the employer or to any payer providing regular income included in the consolidated tax base.
The part of the family tax allowance that cannot be utilized can instead be claimed as a family contribution allowance.

ANYACSKA – a new combined tax advance declaration option for mothers

Effective 1 January 2026, a mother claiming an allowance for mothers may submit a combined tax advance declaration. In this declaration, she can request the chosen allowance (for mothers raising two, three, four or more children) as well as the application of the family allowance and the family contribution allowance from the payer.

Those entitled to both allowances can submit the combined declaration using the form called ANYACSKA, while those claiming only the personal income tax exemption for mothers with multiple children can use the ANYNTA form. The forms can be submitted online via ONYA or in paper form to the employer or payer. It is important to note that a combined declaration can only be made to an employer or a payer providing regular income.

However, the payer will treat this combined tax advance declaration as a continuing declaration only in respect of allowances for mothers.

The online tax advance declaration can be submitted to multiple employers or payers at the same time, with identical or different content.

Continuous tax advance declaration

To apply the allowance for mothers raising three children, the tax advance declaration submitted by the mother to the employer or payer in 2025 must be treated by the employer or payer as a continuous tax advance declaration until the mother submits a new one. For example, if the mother submitted a declaration in October 2025 to apply the allowance for mothers raising three children, she will not need to provide a new tax advance declaration for this purpose in 2026.

Individuals entitled to the allowance for mothers raising three children, mothers raising two children or to first married couples’ allowance can also submit a continuous declaration. The employer or payer must continue to apply the declaration submitted by the mother or individual for the allowance to be applied during the year until they submit a new declaration or request that the previous declaration be disregarded. Therefore, declarations do not need to be resubmitted every year; a new declaration is only required if there is a change in the underlying data. (Up to 2025, only mothers of four who utilized the allowance were allowed to submit a continuous declaration.)

Regarding the allowance for first-time married couples, the declaration is considered continuous only for the period specified by law for claiming the allowance.

Declaration on family tax allowance

If the mother submits a tax advance declaration to claim the family tax allowance or the family contribution allowance, she can indicate her entitlement to the allowance for mothers raising four children, three children, or two children here. No separate declaration is required in these cases. The employer or payer will treat the mother’s declaration requesting the allowance as a continuous tax advance declaration, unless the mother submits a new tax advance declaration.

Employer and payer certificates

The payer or employer responsible for determining tax advances must also indicate the allowances claimed for mothers raising three children, mothers raising two children, and mothers under 30 in the certificate issued on the withheld tax advance.

Incorrect tax advance declaration

Changes effective from 1 January 2026: If a tax advance declaration for itemized expense accounting is submitted incorrectly, a penalty of 12% of the cost difference will apply (previously: 39%), calculated in the personal income tax return. (The penalty for underpayment resulting from a tax advance declaration aimed at unlawfully claiming tax base allowances remains unchanged at 12%.)

The underpayment penalty must be reported as a separate liability in the tax return for the relevant tax year and paid under the rules applicable to personal income tax payments, except where the difference in cost or payment does not exceed HUF 10,000.

(In 2025, the underpayment penalty was 39%, and no penalty applied if the cost difference was within 5% of the total cost or if the payment difference was no more than HUF 10,000.)

For example, if an individual claims an expense with itemized documentation in the tax advance declaration for income earned during the tax year, and the amount deducted based on that declaration exceeds the verified expense reported in the tax return when calculating the consolidated tax base, the individual must declare and pay 12% of the difference when filing the tax return (down from the previous 39%), provided the difference exceeds HUF 10,000.

Non-wage benefits provided by employers

SZÉP card for food purchases

From 1 December 2025, the amount available on SZÉP cards can once again be used for purchasing food (as defined by Government Decree 76/2018), but only between 1 December 2025 and 30 April 2026.

Government Decree 363/2025 (XI. 26.) amending Government Decree 76/2018 (IV. 20.) on the issuance and use of the Széchenyi Recreation Card

Under the government decree, the scope of SZÉP card use has been expanded. From 1 December 2025 to 30 April 2026, as a measure against war-related inflation, the card can also be used to buy food from merchants whose primary activity falls under the following TEÁOR codes:

Mixed retail sale of food and other goods (TEÁOR: 4711)
Retail sale of fruit and vegetables (TEÁOR: 4721)
Retail sale of meat and meat products (TEÁOR: 4722)
Retail sale of fish (TEÁOR: 4723)
Retail sale of bread, bakery products and confectionery (TEÁOR: 4724)
Other retail sale of food (TEÁOR: 4727)

The government decree emphasizes that SZÉP cards cannot be used for alcoholic beverages or for the deposit on products sold in returnable packaging.

Long-term service agreements

As of 1 January 2026, the scope of insured persons will include individuals with a long-term service agreement.

The concept of long-term service agreements is defined in Section 4, point 23 of the new Social Security Act, which states that a service agreement is considered long-term if the employer registers it as such with the state tax and customs authority using form 08E (formerly T1041).

The difference compared to a service agreement is that a long-term service agreement is not subject to any additional conditions. Its essence is that the employer declares the legal relationship in advance as long-term, and the legal relationship and the insured status remain continuously in effect until it is terminated.

The classification of a long-term service agreement depends solely on the parties’ decision and the employer’s declaration. Under the current rules, whether a service agreement is considered long-term depends entirely on this declaration, making it particularly important.

Consequently, for example, if a company continuously engages a person under a long-term service agreement with a monthly fee of HUF 60,000 but does not register them for tax and social security purposes, then that person is not covered by insurance. In such cases it must be checked each month whether the fee reaches 30% of the minimum wage, as the person will only be insured for the months in which this threshold is met. If the company declares the individual to be under a long-term service agreement, then they fall under the scope of Section 6 (1) point l) of the new Social Security Act, which states that coverage also applies to individuals under a long-term service agreement, provided they are not considered to be engaged in supplementary activities. Therefore, for long-term service agreements, it is not necessary to examine the insurance liability according to the rules set out in Section 6 (1) point f) of the Social Security Act; insurance applies to the person in this legal relationship regardless of the amount of income subject to social security contributions.

A minimum contribution base will also apply. Section 27 (2) of the Act on Social Security is supplemented with a reference to long-term service agreements, which means that the rules on minimum contribution payment liabilities previously applicable only to employment relationships must also be applied to individuals in a long-term service agreement.

For example, if a person is declared to be in long-term service agreement and receives a monthly fee of HUF 60,000, they become insured. However, social security contributions must be paid every month on at least 30% of the minimum wage (as of 2026, HUF 96,840).

Section 1 (10) of Act LII of 2018 on Social Contribution Tax has been amended to include a reference to Section 6 (1) (l) of the Social Security Act, meaning that in the case of a long-term service agreement – just as with employment – the contribution base is equal to the social contribution tax base.

The new legal relationship creates an insurance liability similar to that of an employment relationship. However, it is based on a service agreement, which means it cannot be treated as 36-hour employment when determining the minimum contribution liability for private entrepreneurs or partnerships.

Discontinuing paper-based social security booklets

Government Decree 351/2025 (XI. 12.) regulates the discontinuation of paper-based social security booklets. Employers must return paper-based social security booklets no later than the termination of the employment relationship.

From 1 January 2026, paper-based social security booklets will be replaced by digital ones. Individuals with a TAJ number can access their e-social security booklet data through the Patient Journey service, while payment offices can retrieve the information via the designated query interface: https://etb.neak.gov.hu.

Government Decree 217/1997 (XII. 1.) on the Implementation of Act LXXXIII of 1997 on Compulsory Health Insurance Benefits

Pursuant to Section 50/E, employers must hand over the “Certificate of Insured Status and Health Insurance Benefits” (“Certificate”) received prior to 1 January 2026 to each insured individual in a verifiable manner no later than upon termination of their employment relationship. Once handed over, insured individuals are required to retain it until the end of the fifth year following the year in which they reach the applicable retirement age.

If the Certificate is not handed over to the insured individual, the employer is required to retain it for the same five-year period.

Based on the above, with the introduction of electronic social security booklets (“tb-kiskönyv”), employers are therefore required to return the former paper-based booklets to their employees, who must retain them for five years. If the booklet is not returned, the employer remains obliged to retain it for the same five-year period.

Furthermore, pursuant to Section 11 (14) c) of the Decree, the travel cost reimbursement rate will be set at HUF 45 per kilometer.

The amendments are effective as of 1 January 2026.

Changes to the Act on Occupational Safety and Health

Section 54 of Act XCIII of 1993 on Occupational Safety and Health has been amended to include Subsection 6c. Under this provision, employers with a headcount of 50 or more are now required to have the occupational safety elements of their prevention strategy for hazard class I and II activities – as defined by the decree of the Minister for Employment Policy – developed by a qualified professional holding a higher education degree in occupational safety and health.

The Act has also been supplemented with Subsection 8a. This requires employers with a headcount of 50 or more to have the risk assessment for hazard class I activities – as defined by the decree of the Minister for Employment Policy – conducted by a qualified professional holding a higher education degree in occupational safety and health.

These amendments are effective as of 1 January 2026.

Employment-related permits and guest worker residence permits

Decree No. 35/2025. (XII. 3.) issued by the Minister for National Economy regarding the annual quota for employment-related and guest worker residence permits in Hungary

Under this decree, a maximum of 35,000 employment-related and guest worker residence permits may be granted annually.

Unlike last year, this quota now also includes the number of employment-related residence permits granted for the implementation of investment projects contingent upon advance group employment approval. It is also in line with Government Decree 35/2024. (II. 29.) on the implementation of Act XC of 2023, which covers the entry and residence of third-country nationals.

The decree is effective as of 1 January 2026.

The documents required for submission to the Hungarian Tax Authority (NAV) and the State Treasury (MÁK) as of 1 January 2026 are available for download here:

Tax advance declaration forms:

Tax advance declaration on eligible costs
Tax allowance for individuals under the age of 25
Family tax allowance
Personal allowance
Allowance for first-time married couples
Declaration for individuals with foreign residency
Allowance for mothers raising two or more children (ANYNTA)
Allowance for mothers raising two or more children, combined with family tax allowance (ANYACSKA)
Allowance for mothers under the age of 30

Declaration forms for claiming benefits:

Local Contact

Veronika Oláh

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

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