From 1 January 2026, a significant increase in the Hungarian minimum wage will enter into force, having a substantial impact on employers’ daily operations. This change particularly affects the hospitality and retail sectors, where the minimum wage has traditionally played a key role. This article is the first part of a series. In upcoming blog posts, we will cover changes affecting atypical employment relationships as well as individual and corporate entrepreneurs.
📌 TL;DR — What do you need to know about minimum wage changes (in employment)
- Gross minimum wage is 322 800 Ft, the higher wage for skilled workers is 373 200 Ft effective from 1st January 2026.
- This affects all employment relationships, where minimum wages are used - typically in the hospitality and retail industry.
- Weekly, daily, hourly salary is also increasing (eg. hourly minimum wage 1 856 Ft).
- Minimum taxes for part-time employment are still in effect (social contribution and social tax is payable upon 30% of minimum wage, even if hourly minimum wage is less).
- Salaries and calculated taxes are increasing, which result in increasing payroll expenses.
- Those applying small company tax (KIVA) have different calculation method - might still have some tax advantage.
- The article also includes comparison tables for full-time and part-time employment calculations.
- Employers must be ready to arrange contract modifications, registrations, and other administrative task to comply with year-start HR requirements.
How much is the minimum wage in 2026?
From 1 January 2026, the statutory minimum wage in Hungary will increase to HUF 322,800 gross per month in a full-time employment relationship (40 hours per week). Including social contribution tax, the total monthly employment cost rises to HUF 364,764. In the case of part-time employment, the minimum wage must be applied proportionally to working hours, which is shown in details in the table below.
The increase also affects time-based wages:
• Weekly wage (40 hours): HUF 74,210 gross
• Daily wage (8 hours): HUF 14,850 gross
• Hourly wage: HUF 1,856 gross
Is there a hidden minimum tax in employment relations as well?
If an employee works less than 12 hours per week and does not have another primary insurance relationship, social security contributions and employer taxes must be calculated based on 30% of the minimum wage instead of the actual prorated salary. In 2026, this minimum contribution base amounts to HUF 96,840. If the employee’s income does not reach this level, the employer must pay additional social security contributions and higher employer taxes.
Below table summarises minimum wage salary and statutory payables for different weekly hours, 10 hours per week scenario is split one excluding minimum contribution calculation, the other including it.
| Minimum wage, taxes in Ft | Full time | 20 hours | 10 hours – no minimum | 10 hours – with minimum |
|---|---|---|---|---|
| Gross salary | 322 800 | 161 400 | 80 700 | 80 700 |
| PIT (15%) | 48 420 | 24 210 | 12 105 | 12 105 |
| Constribution (18,5%) | 59 718 | 29 859 | 14 930 | 14 930 |
| Net salary | 214 662 | 107 331 | 53 665 | 53 665 |
| Social tax (13%) | 41 964 | 20 982 | 10 491 | 12 589 |
| Extra contribution | 0 | 0 | 0 | 2 985 |
| Total costs | 364 764 | 182 382 | 91 191 | 96 274 |
When is the higher (guaranteed) minimum wage applicable?
The guaranteed minimum wage applies to employees whose position requires at least secondary-level education or vocational qualification. In hospitality and retail, this typically includes roles such as waiter, cook, or store manager. From 2026, the guaranteed minimum wage will be HUF 373,200 gross per month for full-time employment. The net salary calculated under general rules is approximately HUF 248,178, with a total employment cost of HUF 421,176.
Small Business Tax - how does the calculation change?
Employers subject to the Hungarian Small Business Tax (KIVA) do not pay social contribution tax. Instead, a 10% KIVA is payable on employment income, resulting in lower total employment costs compared to the general tax regime, shown in below table in details:
| Minimum wage, taxes in Ft | Full time | 20 hours | 10 hours – no minimum | 10 ours – with minimum |
|---|---|---|---|---|
| Gross salary | 322 800 | 161 400 | 80 700 | 80 700 |
| PIT (15%) | 48 420 | 24 210 | 12 105 | 12 105 |
| Constribution (18,5%) | 59 718 | 29 859 | 14 930 | 14 930 |
| Net salary | 214 662 | 107 331 | 53 665 | 53 665 |
| KIVA (10%) | 32 280 | 16 140 | 8 070 | 9 684 |
| Extra contribution | 0 | 0 | 0 | 2 985 |
| Total costs | 355 080 | 175 540 | 88 770 | 93 369 |
Beneficial wage components: service charge and tips
Service charges collected by employers remain exempt from personal income tax and social contribution tax but are subject to social security contributions. For KIVA taxpayers, paid service charges form part of the KIVA tax base.
Tips remain fully tax-exempt whether received in cash or by card, provided they are distributed among employees. No personal income tax, social security contribution, or social contribution tax is payable.
Conclusion
Minimum wages increase year-by-year, if you keep your payroll on this level you must be aware of the new calculation for your business planning. Without taking into account the extra HR expenses you might jeopardise easily the profitability of your company.
How can we help you?
We support clients with year-start payroll and employment-related changes: employment contract amendments, detailed payroll and cost calculations, work schedules, attendance records, and timely payroll processing within the scope of our digital administration services.
For more details please check our services and package offers.
What to read next?
👉 Part 2: Minimum wage changes - simplified employment and contractors
👉 Part 3: Minimum wage changes - entrepreneurs and business owners
