Salary Calculator
Hungary
The Native Teams salary calculator is designed to simplify salary cost calculations and provide clear insights into associated expenses across different countries.
Select the country and currency and enter the salary details. The calculator then generates detailed breakdowns of net and gross earnings, along with additional insights into tax liabilities, health contributions, and pension costs specific to the chosen country.
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How does the salary calculator for Hungary work?
Our salary calculator for Hungary works by providing a detailed breakdown of an employee’s gross salary and showing how taxes, social security contributions, and other deductions reduce it to net income.
The calculation starts with the gross salary, to which the calculator adds any additional earnings, bonuses, tax reliefs, or deductions such as family allowances. The calculator then applies deductions for social security contributions, including health insurance, pension contributions, and unemployment insurance, as well as the income tax rate.
Once all the deductions and taxes are applied, the calculator displays the net salary, which is the final amount that is transferred to the individual each month.
What is the salary cost in Hungary?
The starting point for any salary calculation in Hungary is the gross salary, deducted by both employer and employee contributions and taxes. Employees in Hungary contribute 10% of their gross salary to the pension fund, 7% to health care, and 1,5% to the national unemployment fund. In addition, employees must also pay a flat income tax of 15%.
Employers are also subject to a social contribution tax of 13%, covering pension and healthcare. Hence, the total cost for the employer is the gross salary plus contributions, while the employee receives the net salary after all the taxes and contributions are deducted from the gross salary.
How much tax do you have to pay in Hungary?
Unlike many other countries, Hungary doesn’t impose progressive tax rates on income. Instead, personal income is taxed uniformly at a flat rate of 15%, regardless of the earnings. However, some additional criteria may apply based on certain benefits or allowances.
*Please note that this rate may vary due to legislative changes.
What are the mandatory employee benefits in Hungary?
Employers in Hungary are required to provide certain mandatory benefits to their employees. This includes health insurance contributions for medical services through the healthcare system, pension contributions for retirement benefits, and contributions to the unemployment fund for benefits in case of job loss.
In addition, employers must also provide a paid annual leave of 20 days minimum, sick leave with paid compensation, and paid maternity/paternity leave following the birth of a child.
Are there any other benefits or additional expenses?
Some employers in Hungary might also offer supplementary employee benefits, such as contributions to a voluntary pension fund and medical benefits that are not covered under the Hungarian social security system.
Among the extra employee benefits in Hungary is also the fringe cafeteria system, providing employees with options like meal vouchers, holiday vouchers, or recreation and health contributions, which are often tax-advantaged to a certain limit.
Finally, many employees in Hungary may also receive performance bonuses, transportation allowances, and training and development programmes paid as extra benefits by employers.
What is the difference between gross and net in the Hungary salary calculator?
The gross salary in Hungary refers to the total amount of money an employee earns before any deductions, including taxes and social security contributions.
On the other hand, the net salary is the amount that the employee actually receives after all the mandatory deductions have been made. These deductions typically include personal income tax, employee pension contributions, health insurance, and unemployment insurance.
While the gross salary represents the full cost of employing an individual, the net salary shows the actual amount deposited into the employee’s account each month.
How can Native Teams help with employment, salary and taxes in Hungary?
With Native Teams’ comprehensive solutions, every individual or employer can manage salary, taxes, and contributions for themselves or their global team members. With our employment tools and features, you can simplify your payroll management and benefits administration while being fully compliant with Hungary’s labour laws.
Our platform will help you work without any admin and compliance worries on your end, whether it’s calculating salaries, covering contributions, or submitting taxes, giving you the peace of mind that your legal obligations are met promptly.
