Hungary Social Contributions Guide — Szociális hozzájárulási adó

Employer Social Contribution Tax — Szociális hozzájárulási adó (Szocho)

• Rate — 13% (2026): The employer must pay the "szociális hozzájárulási adó" (the "social contribution tax" or "szocho") at the rate of 13% of the gross salary. The rate was reduced from 15.5% in 2024 to 13% in 2024 and remains at 13% for 2026. The reduction was part of the government's long-term tax cut programme.
• Contribution base: The szocho is calculated on the gross employment income (the "bruttó bér" — the "gross wage") including the base salary, the overtime pay, the bonuses, and the other cash benefits. There is NO ceiling for the szocho — the full salary is subject to the contribution.
• Exemptions and reductions: The certain categories of the workers qualify for the szocho exemptions: (a) the workers under the age of 25 (the "25 év alatti fiatalok" — the "young workers under 25") — the employer is exempt from the szocho for the first HUF 1 million of the annual gross salary; (b) the mothers with four or more children (the "négynél több gyermeket nevelő anyák") — the lifetime exemption from the szocho; (c) the research and development employees — the preferential rate of 0% applies under the "KIVA" regime (the "kisvállalati adó" — the "small business tax").

For example: an employee earning the gross salary of HUF 500,000/month. The employer pays szocho of HUF 500,000 × 13% = HUF 65,000/month. The total employer cost is HUF 565,000/month.

Employee Pension Contribution — Nyugdíjjárulék (10%)

• Rate — 10% of gross salary: The employee pays the "nyugdíjjárulék" (the "pension contribution") at 10% of the gross salary. The contribution funds the "társadalombiztosítási nyugdíjrendszer" (the "social security pension system") — the state PAYG (pay-as-you-go) pension system.
• Ceiling: The pension contribution is capped at the "nyugdíjjárulék-fizetési felső határ" (the "pension contribution ceiling") — the annual limit of approximately HUF 9.2 million (the exact amount is adjusted annually). The earnings above the ceiling are exempt from the pension contribution.
• Entitlement: The pension contribution qualifies the employee for the "öregségi nyugdíj" (the "old-age pension") — the state pension paid from the retirement age. The minimum contribution period is 20 years for the full pension entitlement.

Employee Health Insurance Contribution — Egészségbiztosítási járulék (8.5%)

• Rate — 8.5% of gross salary: The employee pays the "egészségbiztosítási járulék" (the "health insurance contribution") at 8.5% of the gross salary. The contribution covers the "egészségbiztosítási ellátások" (the "health insurance benefits") — the access to the state healthcare system including the doctor visits, the hospital treatment, the prescription medications, and the dental care.
• No ceiling: Unlike the pension contribution, the health insurance contribution has NO ceiling. The full gross salary is subject to the 8.5% contribution.
• Benefits included: The health insurance contribution entitles the employee to: (a) the "természetbeni egészségbiztosítási ellátások" (the "in-kind health benefits") — the free medical care; (b) the "pénzbeli egészségbiztosítási ellátások" (the "cash health benefits") — the sick pay (the "táppénz" at 60% of the salary), the maternity benefit (the "gyermekgondozási díj" — the "childcare fee"), and the accident benefit.

Employee Labour Market Contribution — Munkaerőpiaci járulék (1.5%)

• Rate — 1.5% of gross salary: The employee pays the "munkaerőpiaci járulék" (the "labour market contribution" or the "unemployment contribution") at 1.5% of the gross salary. The contribution funds the "munkaerőpiaci szolgáltatások" (the "labour market services") — the unemployment benefits, the retraining programmes, and the job placement services.
• Unemployment benefit entitlement: The employee who loses the job is entitled to the "álláskeresési járadék" (the "jobseeker's allowance") — the unemployment benefit paid at the rate of 60% of the previous salary for up to 90 days (or up to 180 days for the workers with 5+ years of continuous employment).
• No ceiling: The labour market contribution has NO ceiling. The full gross salary is subject to the 1.5% contribution.

Total Contribution Summary

• Employee total — 20%: Pension 10% + Health 8.5% + Labour market 1.5% = 20% of the gross salary, capped only on the pension portion.
• Employer total — 13%: Szocho at 13% of the gross salary, no ceiling, with the certain exemptions for the young workers and the large families.
• Combined total — 33%: Employee 20% + Employer 13% = 33% of the gross salary in social contributions.
• Separate from SZJA (15%): The personal income tax (the "személyi jövedelemadó" — the "SZJA") at the flat rate of 15% is calculated on the gross salary and is NOT part of the social contribution system. The effective total tax wedge (the SZJA + the employee contributions) is 35% of the gross salary before the deductions.