Employment costs will drop from next month, because the social contribution tax payable by employers on the gross salaries will be down to 17.5%. The total payroll costs of employers will be below 20% first time ever, even if the training contribution of 1.5% is added to it.
The social contribution tax was 27% until 2016. It was cut to 22% in 2017, then to 19.5% in 2018. Since the average salary level is increasing by over 10% per annum, this next tax cut can be implemented as from 1 July 2019.
Further tax cuts and simplification will follow to keep up the strong growth of the Hungarian economy. We will keep you informed. If you need detailed information, please contact us at contact@leinonen.hu
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