Minimum wage in Hungary in 2026

Minimum wage and guaranteed minimum salary

In Hungary, there are two types of minimum wage: one we actually call minimum wage, relevant for positions that do not require any qualifications, and the so called guaranteed minimum salary for positions that require at least a high school diploma.

The minimum wage and the guaranteed minimum salary are always the monthly gross salary for a full-time job (40 hours a week), based on which both the employee and the employer pay their taxes. However, employees usually receive only their net salary after the employer has deducted their taxes and forwarded them to the tax authority. Since each employee might be eligible for different tax benefits, the net salary of employees with the same gross salary might be different.

As of January 1, 2026, the Hungarian minimum wage will be the following:

*The weekly, daily, and hourly minimum wages will be updated when the relevant government decree is published.

This means a ca. 11% increase to the minimum wage and a ca. 7% increase to the guaranteed minimum salary compared to 2025.

Keeping in line with the 3-year plan

The increase is slightly below what was expected according to the 3-year minimum wage plan published last year, although it still allowed for flexibility. The plan included that inflation and GDP growth should both be considered when determining the 2026 minimum wages, and these figures did not meet expectations. Stakeholders expected inflation around 3.2%, but it has been closer to 4.7%; similarly, GDP growth was expected around 3.4%, but it has been closer to 0.5% in 2025.

Effects on HR and payroll

The minimum wage increase affects the operational costs of your Hungarian company as well as the take-home pay of your employees. While the taxes to be paid by both the employer and the employee remain the same, the taxes you pay will increase proportionately to the raise you give your employees.

If you have any employees whose salary will be below the minimum wage starting from January, you have to give them a raise to remain compliant with regulations. At the same time, you will have to modify the labor contracts of these employees to include the raise. If you need help with this, ask for our HR support service.

Effects on taxes and benefits

The upper limit of social contribution tax (relevant for company owners who take a dividend), the amount of social contribution tax deduction, and the base of income tax relief are tied to the minimum wage effective on 1 January, and they are calculated for the year. With the most recent update, these will also experience an increase in 2026.

For those who work in employment, the lower limit for the social security contribution and the social contribution tax are both tied to the minimum wage: their minimum is calculated based on 30% of the monthly minimum wage. Obviously, these minimum contributions will increase in line with the minimum wage itself.

The minimum wage also affects the contribution benefit for the employment of people with disabilities. Social contribution tax paid after such people may be waived up to the double of the minimum wage per month, meaning HUF 645,600 from January 2026.

Other benefits affected are childcare allowances (paid to parents, parents with higher education, or grandparents), and the unemployment benefit, but these are paid by the Treasury, so they do not affect payroll costs.

Minimum wage and self-employment

Unless you are self-employed under the KATA tax regime, the change to the minimum wage will affect the minimum contributions you must pay. However, other changes make self-employment more attractive.

• Most notably, the social contribution tax (and its minimum) will actually decrease starting from January 2026, since the calculation basis is reduced from 112.5% to only 100%. If you are self-employed as your full-time job, your monthly minimum contributions increase starting from January 2025. For minimum wage activities, it will be HUF 101,682, and for activities requiring at least a high-school diploma it will be HUF 117,558.
  
  
• If you pay taxes under flat-rate taxation, your yearly limit for tax exempt income also increases, since it is defined as half the yearly minimum wage. The new limit is HUF 1,936,800 for income. Since at the same time, the standard expense rate is being increased from 40% to 45%, reducing the standard tax base from 60% to 55%, the tax exempt revenue will increase more steeply than in previous years, to HUF 3,521,455.

Plan your budget for 2026

Make sure to plan your 2026 budget taking into account the increased minimum wage and guaranteed minimum salary. If your employees are on minimum wage, give them a raise to keep your business operation compliant. If your employees are not on minimum wage, you should still consider giving them a raise to let their salaries maintain their purchase power.

Helpers Finance offers both payroll and HR compliance services that let employers save on administrative costs, access templates for salary increases and other labor contract modifications, and retain talent. We focus on working with foreign owners of small and medium-sized companies, and always do our best to help them make informed financial and administrative decisions.