Fringe benefits in Hungary – Cafeteria 2026

Fringe benefits are called cafeteria in Hungary

Your Hungarian business is not required to offer fringe benefits; it is perfectly fine to offer compensation to your employees in money. If you decide to offer fringe benefits, you do not have to provide all the various fringe benefits available in Hungary, but you can pick and choose which fringe benefits to make available at your own company, just like when you are choosing premade items at a cafeteria (hence the name).

Below we will list the fringe benefits currently available in Hungary. Before that, please note that introducing a fringe benefit plan might not be cost-effective at your company. Even though offering fringe benefits may reduce your personnel related taxes, it might raise the relevant administrative costs. As a result, make sure you do precise calculations before introducing such a scheme. Additionally, it makes sense to ask existing employees about their preferences so you can create a system that is attractive as well as cost-effective.

Cafeteria elements that are tax free (tax rate 0.00%)

Below you can find a list of 0% tax rate cafeteria elements our clients are most often interested in. There are a few additional elements, but those are not normally relevant to foreign owned SMEs in Hungary.

• Children’s daycare
• Screening and vaccination that are meant to contain an epidemic
• Compensation for teleworking employees – at most 10% of the minimum wage, so HUF 32,280 / month in 2026
• Tickets to various cultural events, programs, services (e.g. theater, circus, library): max. the current minimum wage, so HUF 322,800 / year in 2026
• Passes to sport events, only if the ticket or pass cannot be returned: max. the current minimum wage, so HUF 322,800 / year in 2026
• Zoo entrance tickets: max. the current minimum wage, so HUF 322,800 / year in 2026
• Wine as a gift, if purchased directly from a Hungarian winery
• Commute expenses: for public transport, car, or electric bike. Read more here.

Cafeteria elements at a tax rate of 28%

Some fringe benefits offer tax reduction by not being subject to the 18.5% social security contribution, only the 15% personal income tax and the 13% social contribution tax.

1. Széchenyi Recreation Card (or SZÉP Card for short)

Employers may provide at most HUF 570,000 a year in this format, which may be spent in accordance with the following:

• HUF 450,000 may be assigned for hot meals, holiday accommodation and cultural activities
• HUF 120,000 may be assigned for sport services

In 2025, half of the SZÉP Card savings were available for home renovation as well. This benefit, however, expired on December 31, 2025.

At the same time, the SZÉP Card is currently available for buying groceries. This is just for a limited time, between December 1, 2025, and April 30, 2026.

2. Housing Allowance

Employers may offer a housing allowance to employees who are under 35 years.

• The sum may be up to HUF 150,000 / month or HUF 1.8 million / year.
• It may be spent either on rent or on the repayment of a housing loan.

Cafeteria elements at a tax rate of 33.04%

The taxes payable are still only the 15% personal income tax and the 13% social contribution tax, but the tax base is the 118% of the value of the allowance.

• SZÉP Card payments made on top of the above mentioned limits
• Housing allowance to those under 35 made on top of the above mentioned limit
• Voluntary pension fund payments meant for specific services
• Gifts of small value may be given at most 3 times a year, each time up to 10% of the minimum wage (meaning HUF 32,280 in 2026)

Further cafeteria elements at the regular payroll tax rate

The employer may also provide fringe benefits at the regular payroll tax rate:

• Contributions to a voluntary healthcare fund
• Contributions to a voluntary pension fund

Here the benefits apply only to the employee, as they can get a tax reimbursement after 20% of their funds up to HUF 150,000 each year. However, they can enjoy the same benefits even if they make the contributions to the funds on their own.

In 2026, it is important to note that throughout 2025, funds accumulated in voluntary pension funds were available for housing purposes. This is no longer true in 2026.

Helpers Finance and your cafeteria plan

Do you have a cafeteria plan in place at your Hungarian company? It should be reviewed and updated before the end of January, and you should notify employees of the changes. Consult your accountant or your HR specialist about the required modification.

Are you considering implementing a cafeteria plan? You can realize it at any point of the year, just make sure to first consider whether it will be cost-effective for your business and attractive to your employees.

Helpers Finance offers a wide range of accounting, payroll, and HR services, which includes creating and implementing cafeteria plans. Let us know if you are interested, and our specialist will contact you.