Social Security in Hungary concerns government policy on social welfare. It is administered by the Emberi Eroforrások Minisztériuma (Ministry of National Resources).
Social Security Contributions in Hungary
Contributions are both personal, by the employer, and the government. In Hungary social security contributions cover health, pension and unemployment insurance. Payable contributions are calculated based on the employee's gross salary. Both the employer and the employee are obliged to pay social security contributions.
Social security contributions should be paid after the insured has an employment contract. Since 2014, the employer's tax is 19,5% of the monthly gross salary.
The employer's tax is paid above your gross salary. Your gross monthly salary will not deduct these.
An employee's social security contributions are a total of 18.5%.
- Pension insurance contribution: 10%
- Health insurance and labor market contribution: 8.5%
The employee's social security contributions are deducted from your gross monthly salary. No contribution to unemployment funds and monetary health contribution are paid by retired persons or persons who are over the age limit for retirement.
Social Security Benefits in Hungary
Some of these benefits are also available to foreigners in Hungary. In order to qualify, you must have a valid work permit and have made the minimum required months of contributions required by each benefit.
Statutory Sick Pay in Hungary
Sick pay is provided to insured applicants and sick leave is provided instead of sick pay for the first 15 working days of the period of incapacity for work. The employer pays 70% of usual pay for periods of absence. Sick pay is provided for up to one year, for 30 days after the expiry of the insurance and in the event taking care of a sick child.
Employees pay 4% of gross monthly earnings for benefits in kind and 2% of gross monthly earnings for cash benefits and the employer pay 4.5% for sick benefits.
Maternity Pay and Maternity Leave in Hungary
An employer has to be informed about an employee's pregnancy in writing to ensure pregnant women have workplace protection.
Women have mandatory 24 weeks maternity leave, but may take off as much as three years. For the first six months, they receive 70% of her previous salary (this is capped). These benefits are known as Terhességi-gyermekágyi segély - TGYÁS (Pregnancy and Confinement Benefit). The maximum benefit is 100,000 HUF per month.
Update 24/04/2020
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