Social security contributions in 2009 IN Hungary
Social security contributions payable as of 1 January 2009**
| Social security contributions payable as of 1 January 2009** | |||||||||
| Year | Payable by the employer | Payable by the employee | |||||||
| Social security contributions | Early retirement insurance contribution | Pension contribution | Private pension fund membership fee | Health insurance contribution | |||||
| pension insurance contribution | health insurance contribution ** | ||||||||
| in-kind | in cash | non-private pension fund member | private pension fund member | in-kind | in cash | ||||
| 01/01/09 - 30/06/09 | 24% | 4,5% | 0,5% | 13%* | 9,5% | 1,5% | 8% | 4% | 2% |
| From 01/07/09 | 24% | 1,5%** | 0,5% | 13%* | 9,5% | 1,5% | 8% | 4% | 2% |
|
Health service contributions payable by private entrepreneurs engaged in auxiliary activities and by companies |
Amount of the upper limit pertaining to compulsory contributions |
||
| HUF 4,500 /month (HUF 150/day) | HUF 20,400/day | HUF 7,446,000 p.a. | |
It is important to note that pursuant to Article 20 (2) of Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pensions and the Funding of These Services, the minimum of the contribution base is the double amount of the prevailing minimum wage after which employers pay social security contributions on persons in their employment each month. The minimum wage from February 1st 2009 is 71,500 HUF.
Thus, the employer pays on a gross wage of HUF 143,000
- HUF 34,320 as pension insurance contribution,
- HUF 2,145 as in-kind health insurance contribution, and
- HUF 715 as health insurance cash contribution,
- and, in the case of early retirement, an additional HUF 9,295 as early retirement insurance contribution must also be paid.
The employer may depart from the above stipulation. In this case, however, it must notify the Tax Authority that it pays less than double the prevailing minimum wage. If the gross income exceeds HUF 143,000, the employer pays contributions by multiplying the gross income with the appropriate percentages shown above.
* 50% of the early retirement insurance is covered from the central budget, therefore, this means 6.5% payment liability for the employer.
** The amount of social security contributions payable by the employer and the insured private entrepreneur decreases until the double amount of the statutory minimum wage after July 1st 2009. For that part of the contribution basis that is above the double amount of the minimum wage (HUF 143.000) as well as for earnings gained until July 10th 2009 the contributions according to the regulations in force until June 30th 2009. must be paid.
