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

August 13, 2024

Common VAT Mistakes in Hungary in 2024 (and how to Avoid Them)

Value added tax (VAT) is a tax that applies to most products and services bought and sold in the European Union (EU). While standard rules…

Continue reading
July 11, 2024

New fining rules for all companies

The Hungarian government has issued a new decree doubling the fines that the tax authority (NAV) can impose. The decree was introduced in reference to…

Continue reading
April 29, 2024

Cross-border Payroll in Hungary

We receive more and more inquiries from foreign companies regarding the various possibilities of employment in Hungary. It is also common for a foreign worker…

Continue reading