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As in previous years, the guaranteed minimum salary and the mandatory minimum wage in Hungary have increased as of 1 January 2026, based on the provisions of Government Decree No. 426/2025 (XII. 23).
The change in the minimum wage in Hungary and the guaranteed minimum salary affects not only wages, but also a wide range of tax, social security contribution and benefit rules.
According to the decree, from 1 January 2026:
Beyond determining the minimum level of wages for full-time employees, the increase in the minimum wage has implications for several areas related to taxation and social benefits. This article summarises the most important of these changes.
Sole traders opting for flat-rate taxation (except for retail traders) may remain under this regime as long as their annual revenue does not exceed ten times the annual minimum wage, which in 2026 means HUF 38,736,000.
The tax-exempt income threshold, aligned with half of the annual minimum wage, has increased to HUF 1,936,800.
The personal tax allowance applicable in personal income tax equals one-third of the minimum wage, rounded to the nearest hundred forints. In 2026, this means a tax base allowance of HUF 107,600, resulting in a monthly tax saving of HUF 16,140.
For full-time sole traders and partners in business entities, the minimum base for social security contributions is:
A new rule from 2026 is that the minimum base for social contribution tax (Szocho) is also set at 100% of the minimum wage, i.e. HUF 322,800.
In the case of other forms of work performed for remuneration (typically commission-based contracts), the employment relationship becomes insured if the monthly income subject to contributions reaches 30% of the minimum wage, or – on a daily basis – one-thirtieth of that amount. In 2026, this threshold is HUF 96,840.
An exception applies to persons employed under long-term commission contracts. In such cases, the Social Security Act defines a minimum contribution base, after which the 18.5% social security contribution must always be paid. This base is also 30% of the minimum wage, i.e. HUF 96,840.
For certain types of capital income defined by law (e.g. dividends, income withdrawn from a business, capital gains), social contribution tax must be paid until the combined tax base – including specified capital and personal income – reaches twenty-four times the minimum wage.
Accordingly, the upper limit for social contribution tax in 2026 is HUF 7,747,200.
Certain gifts provided at events and low-value gifts, as defined by the Personal Income Tax Act, are calculated as a percentage of the minimum wage (25% and 10%), and therefore also change in 2026.
Salary advances repayable within six months may be granted tax-free (without calculating interest benefits) up to five times the minimum wage, i.e. HUF 1,614,000 in 2026.
Admission tickets and passes for sporting events, cultural services or zoos may be provided tax-free up to the amount of the minimum wage, which means HUF 322,800 from 2026.
The rehabilitation contribution equals nine times the mandatory minimum basic wage applicable to a full-time employee on the first day of the year, calculated per person annually. In 2026, this amount is HUF 2,905,200 per person per year.
In simplified employment, the daily public charge payable by employers is also linked to the minimum wage. It is calculated as a specified percentage of the minimum wage, rounded to the nearest hundred forints.
In addition, employees in simplified employment are entitled to at least 85% of the minimum wage, or 87% of the guaranteed minimum salary, where applicable.
Income earned through simplified employment does not need to be declared, and no personal income tax is payable, up to 130% of the calculated daily minimum wage or guaranteed minimum salary, multiplied by the number of days worked.
Based on Sections 2(1) and 2(2) of Government Decree No. 426/2025 (XII. 23), from 1 January 2026:
The increase in the minimum wage and the guaranteed minimum salary in 2026 goes far beyond pay levels. It affects the entire system of taxation, social security contributions, employee benefits and employment structures.
For this reason, the changes are worth reviewing carefully not only from an employer’s perspective, but also from the viewpoint of entrepreneurs and employees alike.
From 1 January 2026, the minimum wage for full-time employees is HUF 322,800 per month.
In 2026, the guaranteed minimum salary is HUF 373,200, which is the mandatory minimum wage for positions requiring vocational qualifications.
The minimum wage applies to all employees, while the guaranteed minimum salary applies only to those working in positions that require specific qualifications.
The new amounts must be applied from 1 January 2026 in all affected employment relationships.
The increase in the minimum wage raises, among other things, the revenue threshold for flat-rate taxation and the minimum bases for social security contributions.
Yes. From 2026, the minimum base for social security and social contribution tax is:
Insurance coverage arises if the monthly income reaches 30% of the minimum wage, which in 2026 is HUF 96,840.
Among others, the maximum amounts for low-value gifts, gifts provided at events, salary advances, and several tax-exempt benefits will increase.
The rehabilitation contribution will be HUF 2,905,200 per person per year, which equals nine times the minimum wage.
It is important to review employment contracts and wage structures, and to update contribution and benefit policies to ensure full compliance with the new regulations.
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