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