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
