Hungarian Social Security System

In Hungary social security contributions cover health, pension and unemployment insurance. Payable contributions are calculated based on your gross salary.
Both the employer and the employee are obliged to pay social security contributions.

If you have an employment contract with CEU, the University – as mandated by the law – will automatically deduct your employee’s contributions from your salary and pay them to relevant authorities each month. Also CEU will pay the employer’s contribution after you.

Social security contributions to be paid after the insured having an employment contract

In 2017, the employer’s tax is 22% of the monthly gross salary.
The employer’s tax is paid above your gross salary – i.e. these will not be deducted from your gross monthly salary.

In 2017, employee’s social security contributions are a total of 18.5% - from which:
• pension insurance contribution: 10%
• health insurance and labor market contribution: 8.5% (= health insurance contribution-in-kind: 4% + health insurance contribution in cash: 3% + labor market contribution: 1.5%)
The employee’s social security contributions are deducted from your gross monthly salary.

No contribution to unemployment funds and monetary health contribution are paid by:
• retired persons or persons who are over the age limit for retirement
 

For further information about
• Hungarian pension system - please click here;
• social security benefits – please click here.

Information for employees on unpaid leave - please click here