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

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
March 20, 2024 -

Ákos Journey: Leading with Vision and Values at Leinonen Hungary

Explore the story of Ákos, the Country Manager at Leinonen Hungary, and uncover why he was initially taken aback by the company’s Finnish work culture.…

Continue reading
February 16, 2024

Invoicing and e-invoicing in Hungary

Hungary has not implemented the SAF-T system yet, but it has a more detailed system for several years. Since the data of every issued invoice…

Continue reading