MAJOR TAX AND LABOR CODE CHANGES EFFECTING PAYROLL FROM 2023 IN HUNGARY – SME INFO Nr.2022-06-HU

Starting from 1 January 2023 the Act I of 2012 on the Labor Code has been amended in a number of points due to the transposition of EU Directives 2019/1152 on transparent and predictable working conditions and 2019/1158 on work-life balance into the Hungarian legislation. The amendments are intended to achieve uniform and coherent application of the law as well as compliance with EU legislations and harmonisation obligations. New minimum rights for employees have been introduced, as well as new rules for employers on the content, form and timing of information to be provided to employees in connection with their work. Work-life balance is to be further strengthened by the extension of paternity leave and the newly introduced parental leave and carer’s hours allowance. In addition to the changes to the Labor Code, we would like to highlight other legislative changes we consider important from the Autumn 2022 tax package that may have an impact on payroll. And we also review the most important legislative changes we received „after closing”.

The full versions of the newsletters are available as pdf either in English and Hungarian:

Download in English:
Major tax and Labor Code changes effecting payroll from 2023 in Hungary (SME INFO HU 2022-06 EN)

Töltse le a hírlevelet magyarul:
Bérszámfejtést érintő fontosabb adó- és munka törvénykönyvi változások 2023-tól Magyarországon (SME INFO HU Nr.2022-06 HUN)

Main topics

A) Changes to the Labor Code

1 Transparent and predictable working conditions

1.1 Employer’s obligation to provide written information to new employee

1.2 The employer’s obligation to provide written information if employees are expected to work abroad for more than 15 days

1.3 Regulation of the probationary period in case of a fixed-term employment relationship

1.4 Reinstatement of employment relationship

2 Provisions for work-life balance

2.1 Work more flexible

2.2 Extended and new leave entitlements: paternity leave and parental leave

2.3 Carer’s working time allowance

3 Other changes and clarifications

4 Employers’ to do

B) Changes to other taxation laws

1 Personal Income tax (PIT)

1.1 Allowance for young people under the age of 25 years

1.2 Special employment of foreign individual

1.3 Expansion of regulation related to trusts

Income from capital gains

Income from long-term investment

Securities obtained under SESOP

2 Social contribution tax

3 Social security

Employer definition

4 Tax administration

Restriction of the justification request

C) Arrived after closing

1 Tax allowance for mothers under the age of 30

Who is entitled and from when?

What is the amount of the tax base allowance the young mother is entitled to?

What does the month of eligibility mean?

How the young mother can apply for the tax allowance?

Against what income could the tax allowance be taken into account?

Can it be applied retroactively?

2 Family tax allowance for families with permanently ill or seriously disabled children

3 SZÉP Card – no more sub-accounts

4 Minimum wage and guaranteed wage minimum in 2023

***

Download the full version in English:
Major tax and Labor Code changes effecting payroll from 2023 in Hungary (SME INFO HU 2022-06 EN)

Töltse le a teljes hírlevelet magyarul:
Bérszámfejtést érintő fontosabb adó- és munka törvénykönyvi változások 2023-tól Magyarországon (SME INFO HU Nr.2022-06 HUN)

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