On 16 June 2025, Government Resolution No. 1198/2025 (VI. 16.) was published in Hungary, containing detailed rules on the social contribution tax support programme for employers paying their employees the minimum wage. The aim of the programme is to alleviate the economic burden resulting from the increase in the minimum wage, while encouraging the maintenance of employment and contributing to the competitiveness of businesses. The programme will start on 1 July 2025 and run until 31 December 2027. The published resolution describes the technical conditions for the implementation of the programme.
What benefits does the social contribution tax support programme offer?
Under the social contribution tax support programme of the Hungarian government, the employers concerned will receive non-repayable compensation support as follows:
- In 2025, instead of the social contribution tax linked to the 2025 minimum wage, the social contribution tax linked to the 2024 minimum wage,
- in 2026, the social contribution tax linked to the 2026 minimum wage will be replaced by the social contribution tax linked to the 2025 minimum wage,
- in 2027, instead of the social contribution tax linked to the minimum wage for 2027, the social contribution tax linked to the minimum wage for 2026
must be paid.
What is the purpose of the support?
The increase in the minimum wage is key to raising the standard of living of employees, but it can also mean significant additional costs for employers in Hungary. The programme can help businesses by reducing the burden of increased costs, thereby promoting:
- the preservation of jobs
- the maintenance of employment levels and
- the stabilisation of economic growth.
The measure is beneficial for both employers and employees, as it promotes employment security and contributes to sustainable wage growth.
he social contribution tax support programme may be particularly relevant for HR, payroll and finance managers, accountants and tax advisors for SMEs, and strategic HR and financial decision-makers. The new business line of WTS Klient Hungary is ready to advise you on state aids with expert guidance. Don’t hesitate to contact us!
This article provides general information and does not constitute advice.
