Increased minimum wage and its effects in 2020

From 1 January of this year, the amount of the minimum wage for full-time employment was increased to HUF 161,000, while the amount of the guaranteed wage minimum changed to HUF 210,600. With respect to the minimum wage, this means an 8 percent increase from last year. Our newsletter aims to provide an overview of the effect of this change on the most important payment obligations arising in the life of companies.

From 1 January of this year, the amount of the minimum wage for full-time employment was increased to HUF 161,000, while the amount of the guaranteed wage minimum changed to HUF 210,600. With respect to the minimum wage, this means an 8 percent increase from last year. Many people do not take this into consideration, but due to the increase of the minimum wage, the limits associated with a number of benefits and allowances changed as well, and the increase also has an effect on social benefits in the cases where the values set in the laws are tied to the minimum wage. Our newsletter aims to provide an overview of the effect of this change on the most important payment obligations arising in the life of companies.

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Tax Newsletter 2020/3.
Tax Newsletter 2020/3.