Why It Is Worth To Employ Pensioners

Big change in the employment rules

A major amendment of the Hungarian social insurance regulations apply as from 1 January 2019. Those employees, who receive pension due their age, are not subject to the public insurance regulations. They are considered as insured persons due their legal status of pensioner. Therefore, their payroll costs change in two points:

1. The health and pension insurance contributions are not deductible from their gross salary. Only 15% PIT is payable, and the net salary level is 85%.

2. The employer does not have to pay the 21% cost on the gross payroll.

This change means that employing pensioners is extremely beneficial for both parties.

If you have further questions, please contact us via contact@leinonen.hu

Recent Posts

Business Entities in Hungary: Subsidiary vs. Branch - Leinonen
November 27, 2025

Business Entities in Hungary: Subsidiary vs. Branch – Which Is Best for Your Company?

Hungary offers a business-friendly environment with the lowest corporate tax in the EU (9%) and strategic access to European markets. If you plan to expand,…

Continue reading
Christmas Bonuses in Hungary - Leinonen
November 25, 2025

Christmas Bonuses: A Leinonen Guide for Foreign-owned Businesses in Hungary

Christmas bonuses can elevate morale, increase productivity, and boost employee retention by helping your team feel truly valued. Getting informed on the impact of Christmas…

Continue reading
Payroll for Foreign-Owned Businesses in Hungary - Leinonen
July 10, 2025

A Guide to Payroll for Foreign-Owned Businesses in Hungary

Serving as a bridge between the east and west, Hungary is ideally positioned for trade across Europe. It is an EU member state already favoured…

Continue reading