How to run payroll in Hungary

Payroll in Hungary runs on a monthly cycle. Payment is usually due by the 10th day of the following month.

This gives employers a 10-day window after the end of each month to process wages, calculate contributions, and transfer funds. Most companies choose to pay on a consistent date within this window—typically between the 5th and 10th of the month.

Legal payment deadlines

Hungarian law requires employers to pay wages by the 10th day of the month following the work period. This deadline is strict—late payments can trigger penalties and employee complaints to the labor inspectorate.

If the 10th falls on a weekend or public holiday, payment must be made on the preceding working day.

13th month payment (mandatory)

Hungary requires employers to pay a 13th month salary, though the full amount isn't always guaranteed. Employees are entitled to one month's base salary as a bonus, but this is prorated based on time worked during the calendar year.

The 13th month payment is typically paid in two installments:

• 50% by February 15, 2027
• 50% by November 15, 2027

Some employers choose to pay the full amount at year-end instead, usually in December.

Calculation method: Take the employee's average monthly base salary (excluding overtime, bonuses, and allowances) and multiply by the proportion of the year worked. For example, an employee who worked 9 months in 2027 with a monthly base salary of Ft 500,000 would receive Ft 375,000 (500,000 × 9/12).

The 13th month payment is subject to all standard payroll taxes and social security contributions—it's treated as regular income for tax purposes.

Vacation pay calculation

Vacation pay in Hungary is straightforward—employees receive their regular salary during paid leave. There's no special calculation or additional payment beyond normal wages.

The amount paid during vacation is based on the employee's average earnings over the previous 12 months, including regular salary, overtime, and recurring bonuses. This ensures employees don't lose income when taking time off.

Employers must pay vacation wages in advance if the employee requests it before taking leave. This advance payment should be made on the regular pay date preceding the vacation period.

Unused vacation days can be carried over to the following year, but employers must pay out any remaining unused vacation when employment ends.

Payment methods

Bank transfer is the standard—and effectively mandatory—payment method in Hungary. Employers must pay wages directly into employees' bank accounts.

Cash payments are technically allowed but heavily restricted and impractical for regular payroll. The tax authority (NAV) scrutinizes cash wage payments closely due to fraud concerns.

Bank account requirements: Employees must provide Hungarian bank account details (IBAN format). International bank accounts can create complications with reporting requirements, so it's best to require a local Hungarian account.

All payments must be made in Hungarian Forints (HUF). If you're paying from an international account, ensure the transfer converts to HUF before reaching the employee's account—employees should receive the exact net amount in local currency.

Payslip requirements

Hungarian law requires employers to provide detailed payslips with every wage payment. These must be delivered before or on the payment date.

Mandatory payslip information:

• Employee's full name and tax identification number
• Employer's name, address, and tax number
• Payment period and payment date
• Number of hours worked (including overtime)
• Gross salary breakdown by component (base salary, allowances, bonuses)
• All deductions itemized (personal income tax, pension contribution, health insurance)
• Net salary amount
• Year-to-date totals for gross pay, taxes, and contributions

Electronic payslips are fully accepted in Hungary. You can deliver them via email or through a secure employee portal. No paper payslip is required unless the employee specifically requests one.

Language requirements: Payslips must be in Hungarian. If you employ foreign workers who don't speak Hungarian, you can provide a translated version as a courtesy, but the official payslip must be in the local language.

Keep payslip records for at least 5 years. The tax authority can audit payroll records during this period, and you'll need to produce original payslips if requested.

Tax withholding reports in Hungary are due by the 12th of each month. Late filing means penalties starting at Ft200,000 (around $550), and that's just the beginning if you fall behind.

Hungary operates a flat personal income tax system, which makes calculations straightforward once you understand the structure. The real complexity comes from the monthly reporting requirements and the various tax credits that can reduce what employees owe.

Income tax rates for 2027

Hungary maintains its flat personal income tax rate at 15% for all employment income. This applies to gross salary after deducting mandatory social security contributions.

Income Level	Tax Rate
All employment income	15%

There's no tax-free allowance or minimum threshold. The 15% rate applies from the first forint earned. However, employees can claim various tax credits that reduce their final tax liability, which we'll cover below.

Family tax allowance (Családi kedvezmény)

This is where many employers trip up. Employees with dependents qualify for monthly tax credits that reduce their income tax liability. You need accurate family status information to calculate this correctly.

Monthly tax credit amounts (2027):

• One dependent child: Ft66,670 per month
• Two dependent children: Ft133,330 per month total (Ft66,670 per child)
• Three or more dependent children: Ft220,000 per month per child

Parents split these credits between them, or one parent can claim the full amount if the other waives their right. You'll need signed declarations from employees showing how they want to split the credit.

The family tax allowance reduces the 15% income tax. If the credit exceeds the tax due, employees can apply the remainder to reduce their social security contributions (up to the full amount of employee-side contributions).

First-marriage tax allowance (Fiatal házasok kedvezménye)

Newlyweds get a tax break for their first 24 months of marriage. Each spouse can claim Ft33,335 per month in tax credit if they're under 30 at the time of marriage and it's their first marriage.

This credit applies for 24 months from the month of marriage. Like the family allowance, any unused portion can offset social security contributions.

Withholding requirements

You're responsible for calculating and withholding personal income tax from every paycheck. The calculation follows this order:

1. Start with gross salary
2. Deduct employee social security contributions (18.5%)
3. Apply the 15% tax rate to the remaining amount
4. Subtract any tax credits (family allowance, first-marriage allowance)
5. The result is the income tax to withhold

You must remit withheld taxes to the Hungarian Tax Authority (NAV) by the 12th day of the following month. If the 12th falls on a weekend or holiday, the deadline moves to the next business day.

Monthly reporting happens through the EKAER online system. You'll submit detailed employee-level data showing gross pay, deductions, tax withheld, and credits applied. This isn't just a summary payment—NAV wants individual employee records every month.

Annual reconciliation

You'll file an annual reconciliation report by February 25, 2028 for the 2027 tax year. This report consolidates all monthly withholding and corrects any errors discovered during the year.

Employees don't typically file individual tax returns unless they have income from multiple sources or want to claim additional deductions you didn't handle through payroll. Most employees with single-employer income have their tax obligations fully settled through withholding.

If you discover you under-withheld during the year, you're responsible for the shortfall plus interest. NAV will assess penalties based on the amount and duration of the underpayment.

Tax registration requirements

Before running your first payroll, you need a tax number from NAV. This registration typically takes 3-5 business days if you submit complete documentation.

Required documents for tax registration:

• Company registration certificate
• Articles of association
• Proof of registered address in Hungary
• Authorized signatory documentation
• Bank account details for tax payments

You'll also need to register each employee individually with NAV before their first payment. Employees need a tax identification number (adóazonosító jel), which Hungarian citizens already have. Foreign employees must apply for one, which takes about 5-10 business days.

Non-resident employee taxation

Non-residents working in Hungary face the same 15% income tax rate on their Hungarian-source income. The key question is whether they're considered tax residents.

An employee becomes a Hungarian tax resident if they:

• Spend more than 183 days in Hungary during the calendar year, or
• Have their permanent home in Hungary, or
• Have their center of vital interests in Hungary

Tax residents pay Hungarian tax on worldwide income. Non-residents only pay on Hungarian-source income (like salary for work performed in Hungary).

Tax treaty considerations:

Hungary has tax treaties with over 80 countries. These treaties can modify withholding requirements and prevent double taxation. The most common treaty benefit is the ability to credit Hungarian taxes paid against home country tax liability.

For employees from treaty countries, you may need to obtain a certificate of tax residence from their home country. This proves they're covered by the treaty and eligible for any reduced withholding rates or exemptions.

EU citizens working temporarily in Hungary (under 183 days) may remain tax resident in their home country under treaty rules. You'll still withhold Hungarian tax, but they can potentially claim a refund when filing their home country return.

Local taxes

Hungary has a local business tax (helyi iparűzési adó) that municipalities charge, but this is a tax on the employer, not withheld from employees. We'll cover this in the employer contributions section.

There are no regional or municipal income taxes withheld from employee paychecks. The 15% national rate is the only income tax you'll withhold.

Common tax mistakes and penalties

Mistake #1: Incorrect family tax allowance calculations

Many employers don't update allowances when employees' family situations change. An employee has a baby in June, but you don't increase their credit until January of the next year. That's 7 months of incorrect withholding.

Penalty: If you under-withhold, NAV assesses a penalty of 50% of the tax shortfall plus interest at the central bank base rate plus 5 percentage points (currently around 11% total). On Ft100,000 in under-withheld tax, that's Ft50,000 penalty plus Ft11,000 annual interest.

Mistake #2: Late monthly reporting

Missing the 12th-of-the-month deadline for EKAER filing is one of the most common errors. Even if you pay the taxes on time, late reporting triggers penalties.

Penalty: Late filing penalties start at Ft200,000 per report and can increase to Ft500,000 for repeated violations. NAV can also assess penalties up to Ft2,000,000 if they determine the late filing was intentional or showed gross negligence.

Mistake #3: Failing to register foreign employees

Some employers start paying foreign employees before obtaining their Hungarian tax identification numbers, thinking they can sort it out later.

Penalty: Operating without proper registration can result in penalties of Ft500,000 to Ft5,000,000. NAV may also assess back taxes with

Think your home country has high employer taxes? Hungary's contributions total 13% on top of gross salary. It's actually one of the more employer-friendly rates in the EU, but you'll need to understand how the social contribution tax works and when payments are due.

Contribution breakdown

Hungary simplified its employer contribution system significantly in recent years. You'll pay just one type of employer contribution: the social contribution tax (szociális hozzájárulási adó or "szocho").

Contribution Type	Employer Rate	Employee Rate	Cap (if any)
Social contribution tax	13%	-	None
Pension contribution	-	10%	None
Personal income tax	-	15%	None

The 13% covers the employer's obligations for social security, healthcare, and employment-related benefits. Employees pay their own contributions separately through pension contributions and personal income tax, which you'll withhold from their gross salary.

Total employer cost example

Here's what a Ft600,000 monthly salary actually costs you:

• Base gross salary: Ft600,000
• Social contribution tax (13%): Ft78,000
• Total employer cost: Ft678,000
• Cost multiplier: 1.13 (you pay 13% more than gross salary)

This calculation is straightforward because there's only one employer contribution rate. Unlike many European countries, Hungary doesn't have separate rates for health insurance, unemployment, or other social programs.

For annual planning, multiply monthly costs by 12. A Ft600,000 monthly salary costs Ft8,136,000 annually in total employer expenses.

Contribution caps and ceilings

Good news: Hungary doesn't impose any caps or ceilings on the social contribution tax. You'll pay the same 13% rate whether an employee earns Ft300,000 or Ft3,000,000 monthly.

This makes budgeting easier for high earners. You won't see contribution rates drop mid-year when employees hit a threshold, and you won't need to adjust your payroll calculations based on accumulated earnings.

The flat rate applies to all types of compensation that qualify as taxable income, including bonuses, commissions, and most fringe benefits.

Registration requirements

You'll need to register with the National Tax and Customs Administration (NAV) before hiring your first employee. This single registration covers both tax withholding and social contribution obligations.

Register each new employee with NAV before their first day of work. You'll submit Form T1041 electronically, which notifies NAV of the employment relationship. This must be done by the start of the employment, not at month-end.

The registration process typically takes 1-2 business days if your documentation is complete. You'll need the employee's tax identification number (adóazonosító jel) and social security number (TAJ szám).

Payment deadlines

Social contribution tax is due by the 12th day of the month following the payment month. If you pay January salaries on January 31st, your contribution payment is due by February 12th.

The 12th is a hard deadline. If it falls on a weekend or public holiday, the deadline moves to the next business day, but don't count on this happening often.

You'll submit your payment along with Form 08-as, the monthly declaration of tax and contribution liabilities. This form summarizes all employee taxes and contributions for the month. File it electronically through NAV's online portal.

Payment must be made in HUF to NAV's designated bank account. International wire transfers can take 2-3 business days, so initiate payments early if you're paying from outside Hungary.

Vocational training contribution

Some employers pay an additional 1.5% vocational training contribution (szakképzési hozzájárulás) on top of the 13% social contribution tax. This applies if your company doesn't participate in Hungary's dual vocational training system.

Most international companies pay this additional contribution, bringing the total employer rate to 14.5%. You're exempt only if you have a formal agreement with a vocational training institution to provide practical training places for students.

The vocational training contribution follows the same payment schedule and rules as the social contribution tax. Report it on the same Form 08-as and pay it to the same NAV account by the 12th of the following month.

Sick leave in Hungary is paid at 70% for the first 15 days by the employer. After that, social insurance takes over at 60% of the daily average salary. This split matters for your payroll calculations—you're tracking two different payment sources and rates.

Annual leave

Employees get a minimum of 20 working days of paid annual leave per year. That's the baseline for everyone under standard employment contracts.

The calculation gets more complex with age and children. Employees under 25 get an extra day. Between 25-28, they get two extra days. From 28-31, three extra days. After 31, they get four extra days. Plus, employees with one child get two extra days, and this increases by two days for each additional child up to a maximum of seven extra days.

Vacation pay calculation

Vacation pay equals the employee's average daily salary multiplied by the number of leave days. You calculate the average based on the previous 12 months of earnings, including regular bonuses and allowances.

Pay vacation days at the employee's normal pay cycle. The payment happens when the leave is taken, not accrued.

Carryover and payout rules

Employees must use their annual leave within the calendar year. You can carry over unused days to the next year, but they must be used by March 31.

When employment ends, you must pay out all unused annual leave. Calculate the payout at the employee's current daily rate, not the average. This payment is subject to standard payroll taxes and social contributions.

Sick leave

Employees can take sick leave for as long as medically necessary. There's no maximum duration set by law, but the payment structure changes based on duration.

Payment structure

For the first 15 calendar days of sick leave, you pay 70% of the employee's daily average gross salary. This comes directly from your payroll budget.

From day 16 onwards, the National Health Insurance Fund (NEAK) pays 60% of the daily average salary. You stop making sick pay calculations at this point—the employee deals directly with social insurance.

Certification requirements

Employees need a medical certificate from day one of sick leave. The doctor issues a certificate that goes to both you and the social insurance authority.

You must report sick leave to the tax authority through the monthly contribution report. Include the start date, duration, and payment amounts in your standard payroll submission.

Impact on payroll calculations

Calculate the daily average salary based on the previous 180 calendar days of earnings. Include all regular payments—base salary, bonuses, allowances. Exclude one-time payments and benefits in kind.

Sick pay is subject to personal income tax but exempt from employee social contributions. You still pay employer contributions on sick pay amounts. This creates a different calculation than regular salary.

Parental leave

Maternity leave

Pregnant employees get 24 weeks of maternity leave. They must take at least two weeks before the expected due date and can take the remaining time after birth.

The National Health Insurance Fund pays pregnancy-confinement benefit (CSED) at 70% of the daily average gross salary. You don't pay salary during this period—the employee receives payment directly from social insurance.

Your payroll responsibility is to provide the necessary documentation to NEAK. Submit the employee's earnings data for the previous 180 days so they can calculate the benefit amount.

Paternity leave

Fathers get five working days of paid paternity leave within the first two months after birth. You pay this at 100% of the regular salary through your normal payroll.

Fathers can also take an additional five days of unpaid leave. This doesn't affect payroll calculations beyond tracking the absence.

Child care benefits

After maternity leave ends, parents can claim child care fee (GYED) for up to 24 months. NEAK pays 70% of the daily average salary, capped at 70% of twice the minimum wage.

Parents can also claim child care allowance (GYES) until the child turns three. This is a flat-rate benefit paid by social insurance, not tied to previous earnings.

These benefits don't run through your payroll. The employee applies directly to NEAK. You provide employment and earnings documentation when requested.

Public holidays in 2027

Hungary has 11 public holidays in 2027. Employees don't work these days and receive their regular salary. If business needs require work on a public holiday, you pay 200% of the regular rate—100% regular pay plus 100% premium.

Date	Holiday	Notes
January 1	New Year's Day	Friday
March 15	National Day	Monday
April 2	Good Friday	Friday
April 5	Easter Monday	Monday
May 1	Labour Day	Saturday
May 24	Whit Monday	Monday
August 20	St. Stephen's Day	Friday
October 23	National Day	Saturday
November 1	All Saints' Day	Monday
December 25	Christmas Day	Saturday
December 26	Boxing Day	Sunday

Saturday and Sunday holidays

When a public holiday falls on Saturday or Sunday, employees don't get an extra day off. The holiday is simply observed on that weekend day.

This affects 2027 with May 1, October 23, December 25, and December 26 falling on weekends. Your payroll calculations stay the same—you're not adding compensatory days.

Holiday pay calculation

Holiday pay equals the employee's regular daily rate. Include all regular salary components—base pay, regular allowances, and guaranteed bonuses.

If an employee works on a public holiday, calculate the 200% rate on their gross daily salary. The extra 100% premium is subject to all standard taxes and contributions.

Mandatory benefits affecting payroll

Pension contributions

Both you and the employee contribute to the state pension system. The employee pays 10% of gross salary (deducted from payroll). You pay 13% on top of gross salary.

These contributions are mandatory and calculated on all cash compensation. There's no upper earnings cap—you calculate on the full salary amount.

Health insurance contributions

The employee pays 4% for pension insurance and 1.5% for health insurance, totaling 5.5% in employee contributions. You pay 13% social contribution tax as the employer.

Actually, let me correct that—the employee pays 18.5% total social contribution. You pay 13% social contribution tax. These rates apply to all cash earnings without a ceiling.

Vocational training contribution

You pay 1.5% of gross salary as a vocational training contribution. This goes to the National Employment Fund and funds workforce development programs.

Calculate this on the same base as social contributions—all cash compensation. It's separate from the 13% social contribution tax.

Cafeteria benefits

Hungary has a tax-favored benefits system called cafeteria. You can provide certain benefits up to specific limits with reduced tax treatment.

Common cafeteria benefits include meal vouchers (Ft 450,000 annual limit), recreation vouchers (Ft 450,000 annual limit), and voluntary pension fund contributions. These limits apply for 2027.

Benefits within the limits are subject to 15% personal income tax but exempt from social contributions. This creates payroll savings compared to cash compensation

Miss the 12th of the month filing deadline in Hungary and penalties start at Ft200,000, plus interest accruing daily. The National Tax and Customs Administration (NAV) takes compliance seriously, and their automated systems flag late submissions immediately.

What monthly filings are required?

You'll submit monthly declarations through NAV's online portal by the 12th of each month. The '08-as bevallás' (Form 08) reports individual employee earnings, tax withholdings, and social contributions. This isn't optional—every employer with staff in Hungary must file, even if there's no payment due.

The declaration includes personal income tax (PIT), social contribution tax, and vocational training contribution. You'll report gross salaries, allowances, benefits in kind, and all deductions. NAV cross-references this data with employee tax records, so accuracy matters.

Payment deadlines match filing deadlines. Transfer tax and contributions by the 12th using the specific tax account numbers NAV assigns during registration. Late payments trigger immediate penalties of Ft200,000 plus 1.2 times the Hungarian central bank base rate as daily interest.

Electronic filing requirements

NAV requires electronic submission through the Online Nyomtatványkitöltő Alkalmazás (ONYA) system or via certified accounting software with direct NAV integration. Paper filings aren't accepted except in extraordinary circumstances with prior approval.

You'll need a Kapu registration (NAV's client gateway) for each authorized signatory. This digital signature system authenticates all submissions. Set this up during company registration—it takes 5-7 business days to activate.

What annual reporting is mandatory?

Year-end reconciliation happens in January 2028 for the 2027 tax year. You'll submit the '1708 bevallás' annual reconciliation statement by February 25, 2028. This reconciles total annual wages, taxes withheld, and contributions paid against your monthly declarations.

Employees receive their 1708-as igazolás (annual tax certificate) by January 31, 2028. This document details their total gross income, tax withheld, social contributions, and any benefits provided. Employees need this to file personal tax returns if they have additional income or claim deductions.

The certificate must show monthly breakdowns, not just annual totals. Include all taxable benefits, company car values, housing allowances, and stock options at their taxable value. Employees can't complete their tax returns without accurate certificates.

Annual audit requirements

NAV conducts risk-based audits covering approximately 8-12% of employers annually. They focus on companies with payroll inconsistencies, late filings, or significant year-over-year changes. Audits typically examine the most recent three years of records.

You must maintain complete payroll documentation for eight years from the end of the tax year. This includes employment contracts, timesheets, payment records, benefit documentation, and all correspondence with NAV. Missing records result in estimated tax assessments based on industry averages—usually unfavorable to employers.

What employee documentation is required?

Employment contracts must be written in Hungarian and signed before the employee starts work. The contract must specify job title, workplace location, salary amount, payment frequency, working hours, probation period (maximum 3 months), and notice periods.

Verbal agreements or foreign-language-only contracts aren't legally valid. If you employ non-Hungarian speakers, provide a translated version for their reference, but the Hungarian version is the legally binding document.

Payslip requirements

Issue payslips by the payment date each month. Hungarian law requires specific elements on every payslip:

• Employee's full name and tax identification number
• Employer's name, tax number, and registration number
• Pay period and payment date
• Gross salary itemized by component (base, overtime, bonuses)
• All deductions itemized (PIT, pension contribution, other deductions)
• Net salary paid
• Year-to-date totals for gross pay and tax withheld

Payslips must be in Hungarian. Electronic payslips are acceptable if employees can access, download, and print them securely. You need written consent from each employee to provide electronic payslips instead of paper.

Missing or incomplete payslips result in fines of Ft100,000 per occurrence per employee. NAV auditors always check payslip compliance.

Language and format requirements

All mandatory employment documents—contracts, payslips, tax certificates, and termination letters—must be in Hungarian. This applies even if your entire team speaks English. You can provide bilingual documents, but Hungarian must be present and complete.

Keep signed originals of employment contracts and contract amendments. Digital signatures are valid if they meet EU eIDAS regulation standards. Store copies securely for the eight-year retention period.

What are the penalties for non-compliance?

Penalties in Hungary are substantial and escalate quickly. NAV applies fines automatically through their system—there's limited discretion once a violation is detected.

Violation	Penalty	Additional consequences
Late monthly filing (Form 08)	Ft200,000 per occurrence	Daily interest at 1.2x base rate
Late payment of taxes/contributions	Ft200,000 + interest	Interest compounds daily
Incorrect withholding (understated)	50% of underpaid amount	Plus full amount owed with interest
Missing or incorrect payslips	Ft100,000 per employee	Repeated violations double penalties
Failure to issue annual tax certificate	Ft100,000 per employee	Criminal liability for intentional violations
Missing employment contracts	Ft500,000 per employee	Employee can claim contract terms
Inadequate record retention	Ft500,000 per missing document	Estimated tax assessment imposed
Unreported employee (black work)	Ft2,000,000 per employee	Criminal prosecution possible

Interest on late payments uses the Hungarian central bank base rate (13.0% in 2027) multiplied by 1.2, calculated daily. A payment one month late incurs approximately 1.3% interest plus the base penalty.

Repeat violations

NAV tracks compliance history. Second violations within three years double the base penalty. Third violations can trigger criminal investigations for tax evasion, which carries prison sentences of up to eight years for serious cases.

Which regulatory bodies oversee payroll?

The National Tax and Customs Administration (NAV) is your primary regulatory contact. NAV handles all tax collection, social contributions, and payroll compliance monitoring. They operate the ONYA electronic filing system and conduct all payroll audits.

NAV Contact Information:

• Website: www.nav.gov.hu
• Online portal: ONYA (accessed through Kapu

Effective January 1, 2027, all employers in Hungary must apply the new minimum wage rates of Ft 328,200 per month for skilled workers and Ft 266,800 for unskilled workers. These represent increases of 12% and 9% respectively from 2026 levels.

The government announced these increases in November 2026 as part of a three-year wage agreement with social partners. If you're still using 2026 rates in your payroll system, you're underpaying employees and risking penalties of up to Ft 2,000,000 per violation.

Social contribution rate simplification

The employer social contribution tax decreased from 13% to 12.5% on January 1, 2027. This 0.5 percentage point reduction applies to all gross wages without any cap.

For an employee earning Ft 500,000 monthly, you'll now pay Ft 62,500 instead of Ft 65,000 in social contributions. The employee-side contribution remains unchanged at 18.5% (10% pension, 7% health, 1.5% unemployment).

Personal income tax adjustment

The flat personal income tax rate remains at 15% for 2027, but the family tax allowance increased significantly. Families with two children can now claim Ft 20,000 per child monthly (up from Ft 17,500), and families with three or more children can claim Ft 33,000 per child.

Update your payroll system to reflect these new allowance amounts. Employees must submit updated declaration forms (SZJA nyilatkozat) by February 15, 2027 to claim the increased benefits.

Mandatory electronic wage reporting

Starting July 1, 2027, all employers must report wage data to the tax authority (NAV) within 24 hours of payment. This replaces the current monthly reporting deadline.

You'll need to integrate your payroll system with NAV's real-time reporting interface. The penalty for late reporting increases to Ft 500,000 per occurrence under the new rules.

Upcoming changes for 2028

The government announced plans to introduce a 13% employer social contribution rate starting January 1, 2028, representing another 0.5 percentage point reduction. Draft legislation also proposes expanding the family tax allowance to include foster parents.

Monitor these developments in late 2027 for final confirmation and implementation guidance.