2018 changes to fringe benefits in Hungary
To see fringe benefits in Hungary in 2019, click here.
In Hungary, fringe benefits are usually referred to as “cafeteria”. This is the umbrella term for “non-salary compensation” you can give to your employees. There are various fringe benefits (or cafeteria elements) available, offering more favorable taxation options than regular salary.
Offering fringe benefits can make your company a more attractive workplace for professionals, while it also helps you cut costs on taxes and contributions. This creates a win-win situation for you and your employees.
Fringe benefit changes in 2018
1. Fringe benefits with a 34.22% tax rate
No change in regulations. Both cash payments and the so called SZÉP Card can be used exactly as in 2017.
2. Fringe benefits at a higher tax rate
The former 43.66% tax rate has been lowered to 40.71%. This category includes fields of daily life, like the reimbursement of the monthly local travel pass for public transport and hot meals at the workplace. “Erzsébet” vouchers and contributions to voluntary health and pension funds also belong here.
3. Fringe benefits that are tax free
A new element in this tire is the financial support for employees repaying their student loans; this can make the workplace attractive for young professionals. At the same time, the conditions for giving rental support to employees living at a distance became more lenient. Other regulations pertaining to visiting cultural programs, children’s daycare, housing support, computer usage, and various insurances remain the same.
For an updated full list of cafeteria elements in Hungary, click the link.
Don’t forget to update your cafeteria plan
Do you want to include any of the new elements in your cafeteria plan? Even if you don’t, make sure to update the cafeteria plan of your company, and send a notification to your employees. In any case, consult your accountant or payroll advisor to compile a plan that offers the fringe benefits most relevant to your employees and most cost-effective for your company.
Contact your payroll-advisor for a quote today!
To see fringe benefits in Hungary in 2019, click here.
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