04-07-2025
Payroll
Hungary
payroll, tax allowance, family tax allowance, prenatal allowance, childcare allowance, simplified employment, amount exempt from enforcement, enforcement from wage, tax allowance of mothers raising 3 children
Download the full-text newsletter as a pdf in English:
Tax and other changes affecting payroll effective from 1 July 2025
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Töltse le a teljes hírlevelet magyarul pdf-ben:
A bérszámfejtést érintő, 2025. július 1-jétől hatályos adózási és egyéb változások
The pace of legislation has accelerated considerably recently, with new laws being adopted at the same time, whose entry into force may differ or sometimes can be due in several months first. As a consequence, a situation may arise where, in the context of a currently adopted change, we may inadvertently forget a new rule that has already been enacted into law. To avoid this, we present the changes in chronological order, regardless of when they were adopted by the legislators.
As we mentioned above this current newsletter summarises the new legislation affecting payroll, whether previously or recently adopted, all of which will enter into force on 1 July 2025. The changes affect the Personal Income Tax Act, the time limits of simplified employment, eligibility for health insurance cash benefits, and rules on blocking from wage.
At the end of our newsletter, we also look at the rules for the new tax base allowance for mothers of three children, which will be introduced on 1 October as part of the family tax relief scheme.
We plan to report on the changes adopted under the family tax cut scheme, but which will not come into force until 1 January 2026 or later, in a forthcoming newsletter, along with any new rules expected to be adopted in this autumn’s tax package.
The content of our downloadable newsletter(s)
1. Personal income tax (PIT)
1.1. Family tax base allowance: the first step of increasing the allowance amount
1.2. New tax base allowance: tax-free prenatal allowance,
child care allowance and adoption fee
2. Simplified employment: new annual framework for workers
3. Health insurance: Introduction of the „Prenatal Allowance Plus”
4. Changes in the Judicial Enforcement Act
4.1. New item exempt from enforcement
4.2. Increase in the minimal amount exempt from enforcement
5. Looking ahead: tax allowance for mothers with three children