Social security and insurance of employees

What

The social security and insurance taxes that the employer pays monthly, allow the employee to have access to social security benefits such as doctor/hospital visits, pension insurance or insurance in the case of unemployment. There are two types of social contributions (employer paid, employee paid), but in practice both are paid by the employer.

• employer paid is 19,5% of the gross salary of the employee but it isn’t deducted from the gross salary the employer pays it additionally,
• the employee paid is 17 % (10% pension, 7% social insurance and labour market support) of the gross salary but this means that the employer should deduct this amount of money from the gross salary of the employee.

Good to know

For information in English about the Hungarian administration system (government offices, government windows, allowances, etc.) you can call the governmental helpline, what you can find under “Everyday life – Governmental helpline” on this link: http://hu.danubecompass.org/archives/situations/governmental-helpline. If you are calling from Hungary call this number: 1818, if you are calling from abroad call this number: +36 (1) 550-1858.

Steps

STEP 1: The employee need to have social security number (and card) and tax number (and card)

STEP 2: The employer has to register the new employee in the system of the tax office.

STEP 3: The employer has to calculate the amount of the contributions in every month.

STEP 4: The employer has to transfer the money to different bank accounts for each kind of contribution in every month.

Where

Register at the local tax office: