22-07-2024
Tax
Hungary
Act on Social Contribution Tax, tax allowance, labour market entrants, Szochó-törvény, munkaerőpiacra lépők utáni kedvezmény
According to the amendment, a Hungarian citizen or a citizen of a non-EEA state bordering Hungary is considered to be entrant to the labour market if he/she has been in an employment relationship or self-employment or company relationship involving insurance obligation for a maximum of 92 days in 365 days – instead of 275 days, defined previously – preceding the month of the start of the beneficiary employment.
The payer is entitled to claim the social contribution tax allowance in the period of 1 year + 6 months – instead of the 2+1 year period, defined previously.
The amount of the social contribution tax allowance is 13% of the gross wage, but not more than the 13% of the minimum wage, per month during the first year of employment and 6.5% of the minimum wage for the following six months
The above amendments shall apply to employment relationships established on or after 1 August 2024, during the period of the state of emergency within the meaning of Government Decree 424/2022 (28 October 2022).
The period of entitlement to the social contribution tax allowance in connection with employees considered to be entrants to the labour market and entered the labour market for employment periods starting before 1 August 2024 remains unchanged.
The other rules currently applicable to this type of social contribution tax allowance will also remain unchanged.