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Significant Minimum Wage Increase Confirmed in Hungary

Significant Minimum Wage Increase Confirmed in Hungary

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From 2022 the new general gross minimum wage will be HUF 200,000 (approximately EUR 550).

According to the announcement made on 4 November 2021, the gross general minimum wage would be increased to HUF 200,000 (per month), while for more qualified positions (jobs requiring at least a secondary education or a secondary vocational qualification) the so called guaranteed wage minimum will reach gross HUF 260,000 (per month). In both cases the reference minimum wages apply to full-time employees (at least 36 working hours a week).

As part of the minimum wage package deal, the contributions imposed to the employers will be cut with a sum of 4%: social contribution tax is decreased from 15.5% to 13% and former vocational training contribution of 1.5% will be abolished.

The announced changes also imply that while the net amount of the minimum wage and guaranteed wage minimum amounts available for the employees will increase with almost 20%, the contributions paid by the employers will be actually slightly lower than were in 2021. The net amount of the minimum wage will rise from HUF 111,321 to HUF 133,000 and of the guaranteed wage minimum from HUF 145,635 to HUF 172,900 from 2022. It also follows that for the amounts (e.g. childcare allowance, minimum contributions by self-employed and companies, various thresholds) that are linked to the minimum wage will be the increased amounts should be considered from 2022, accordingly.

By Balint Zsoldos, Head of Tax, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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