Hungarian Social Security
Our tax guide for freelance contractors working in Hungary
Employers must contribute 3% of gross employee remuneration to the unemployment fund, 24% to pension funds and 5% for health care. In addition to the social security charges, employers are obliged to pay health care charges in two different forms – health care tax charge which is a percentage (usually at 11% and usually for individuals who are resident in Hungary) and a lump-sum health care levy (HUF 1’950 per month). Resident and permanent establishments of non-resident companies are required to make a contribution of 1.5% of the annual payroll to vocational training.
Employees contribute 1.5% of their gross salary to the unemployment fund, 8 to 10% to pension funds and 6% for health insurance. The salary on which employee contributions to pension funds is calculated has a ceiling of HUF 19’500 per day. In addition, individuals are subject to a 14% health care tax charge on certain elements of passive income if the health insurance contribution is less than HUF 450’000 in the current year: in such a case, the individual has to supplement the amount paid by the employer up to HUF 450’000 if he receives elements of income which are subject to the health care tax (eg. dividends, capital gains, etc.).