HR and payroll related changes in Hungary in 2026

Minimum wage increased again

Starting from 1 January 2026, the minimum wage is increased to HUF 322,800, while the guaranteed minimum salary is increased to HUF 373,200. All benefits and other limits based on the minimum wage will increase accordingly.

If you have any employees whose salaries must be raised in line with this, make sure to also update their labor contracts so it reflects the change. If you are our client, ask your account manager for our HR support service to get assistance with this.

If you are taking dividends, the cap on the social contribution tax you pay on those dividends will increase too.

We will discuss the 2026 minimum wage in detail in a separate article here.

Family tax benefit doubled

The family tax benefit is the child benefit most important to employers when they calculate the net salaries and the taxes payable after their employees, because it decreases the tax base of the parent. It is being doubled in two stages, and we have now arrived to the second stage. Starting from January 1, 2026, the monthly tax base of parents may be reduced as follows:

• HUF 133,340 after 1 child, leaving up to HUF 20,000 with the family
• HUF 266,660 after 2 children, leaving up to HUF 80,000 with the family
• HUF 440,000 after 3 or more children, leaving up to HUF 198,000 with the family

Tax exemptions for mothers

In an attempt to encourage families having children, additional personal income tax exemptions are introduced for women. As of January 1, 2026, the following exemptions will be available:

• NÉTAK: Mothers raising 4 or more children have been exempt from paying personal income tax since 2021. This benefit remains available.
• The personal income tax exemption has been extended to mothers raising 3 children starting from October 2025.
• NEW: Mothers under 30 are becoming eligible for a personal income tax exemption regarding income generated starting from January 1, 2026. A woman is eligible if she is eligible for the family tax benefit, but she is not yet 30 on December 31, 2025; she will remain eligible until the end of the year when she becomes 30.
• NEW: Mothers under 40 with 2 children will also become exempt from the personal income tax starting from January 1, 2026. A woman is eligible if she is eligible for the family tax benefit after 2 children, but she is not yet 40 on December 31, 2025; she will remain eligible until the end of the year when she becomes 40.

The tax exemption for mothers is planned to be gradually extended over the coming years, to include more and more women who have at least 2 children. Women under 50 will become eligible in 2027, women under 60 in 2028, and women of any ages will become exempt from paying the personal income tax for life from 2029.

HR procedures: social security booklet

The pink social security booklet has become redundant, and it is abolished as of January 1, 2026. Employers are advised to hand booklets over to employees either now or at the end of the employment relationship. HR workflows should be updated, and employees should be notified of the change in how their personal data are managed.

Fringe benefits: SZÉP Card

The SZÉP Card is the most popular fringe benefit in Hungary. Funds sent there can be used for hot meals, holiday accommodation, and recreational activities, recently including sports. Between December 1, 2025, and April 30, 2026, the SZÉP Card may also pay for groceries at stores that accept this form of payment.

Throughout 2025, the SZÉP Card was also available for home renovation; this option is discontinued now.

Other tax changes relevant to private individuals

Even though not strictly relevant to HR and payroll, you or your employees might want to keep in mind the following:

Voluntary pension funds no longer available for housing

Last year, voluntary pension funds were also available for housing purposes, including purchase, renovation, and for the repayment of an existing loan. This option is not extended either.

Otthon Start may include non-residential areas

Starting from January 1, 2026, the FIX 3% housing loan available in the Otthon Start Program will be available for real estate located in non-residential areas as well (“külterületi ingatlan”). Of course, the property itself must still be residential property.

Helpers Finance at your service

The latest changes relevant to HR and payroll are most relevant for families and for those planning to buy a home. As an employer, you can support your employees by keeping them informed of changes relevant to them so they can apply for tax benefits as soon as they become eligible. Payroll administration will cost the same regardless of the tax benefits applied to the gross salary of each employee. By taking good care of your payroll and applying benefits appropriately, you can improve employee satisfaction and reduce company costs through better employee retention.

Helpers Finance offers payroll administration and HR compliance services as well as accounting in Hungary, focusing on small and medium-sized companies with foreign owners. We can help you with all kinds of administrative tasks so you can spend your valuable time on making your business a success.