Social Contributions in Hungary (2026): the 18.5% TB Contribution and 13% Szocho
Hungarian employees pay a single unified social contribution (TB jarulek) of 18.5% of gross salary, covering pension, health and labour-market cover. It is uncapped and applies from the first forint. Employers separately pay a 13% social contribution tax (szocho) on top of gross, which does not reduce employee net pay. Rates are set by law; verify with NAV (nav.gov.hu).
The unified 18.5% TB contribution
Since a 2019 reform effective from 2020, Hungary merged its previously separate employee contributions into a single social contribution (tarsadalombiztositasi jarulek, TB jarulek) of 18.5% of gross salary. The 18.5% covers, in internal fund-allocation terms: - Pension (nyugdijjarulek), historically 10% - Health insurance (egeszsegbiztositasi jarulek), historically 7% - Labour-market contribution (munkaero-piaci jarulek), historically 1.5% These components no longer exist as separate legal rates -- for payroll purposes there is a single 18.5% figure. The internal split has no effect on your take-home pay. Key features in 2026: Rate: 18.5% of gross salary, withheld by the employer and rounded to whole forint. No ceiling: the contribution applies to the entire gross salary with no upper cap, so high earners pay 18.5% on every forint. No threshold: it applies from the first forint of salary -- there is no tax-free floor for employees. The TB contribution is deducted from gross alongside the 15% income tax. Verify the current rate with NAV (nav.gov.hu).
The employer social tax (szocho) at 13%
The szocho (szocialis hozzajarulasi ado) is a 13% social contribution tax paid by the employer on top of the employee's gross salary. It is entirely an employer cost and is never deducted from the employee's pay. The szocho funds broad social insurance and is the employer's principal payroll charge. For a gross salary of 500,000 HUF, the employer pays an additional 65,000 HUF of szocho, bringing the total labour cost to about 565,000 HUF. Self-employed people who are their own employer generally pay szocho on their own account -- see the self-employed guide. For an employee, the szocho matters mainly for understanding the full cost of employment and for comparing employment against contracting. The rate has been 13% since 2022. Confirm the current figure with NAV (nav.gov.hu).
The healthcare service contribution for the uninsured
A separate charge, the healthcare service contribution (egeszsegugyi szolgaltatasi jarulek), applies only to individuals who are not otherwise insured -- for example, some people without employment or another insured status. It is a fixed monthly amount, 12,300 HUF in 2026 (up from 11,800 HUF in 2025). This is not deducted from an employee's salary. Regular employees are covered through their 18.5% TB contribution and do not pay it. It is included here only to avoid confusion, because it is sometimes mistaken for an employee payroll charge. If you are between jobs or otherwise uninsured, confirm whether this contribution applies to you with NAV (nav.gov.hu).
How contributions and income tax fit together
For a standard employee the monthly payroll calculation is straightforward: 1. TB jarulek: 18.5% of gross, withheld from pay. 2. SZJA income tax: 15% of gross, withheld from pay. 3. Net pay: gross minus the two amounts above. Both charges are on gross, independently. There is no order-of-operations subtlety of the kind found in countries where contributions reduce the tax base. Separately and invisibly to the employee, the employer pays 13% szocho on top of gross. Worked example, gross 400,000 HUF: TB (18.5%): 74,000 HUF SZJA (15%): 60,000 HUF Net: 266,000 HUF (66.5% of gross) Employer szocho (13%): 52,000 HUF (employer cost, not deducted) Employer total cost: about 452,000 HUF All figures should be confirmed with NAV (nav.gov.hu) or payroll software, as rates and rounding rules are set by law.
FAQ
Is there a ceiling on social contributions in Hungary?
No. The 18.5% employee TB contribution applies to the full gross salary with no upper cap and from the first forint, so a high earner pays 18.5% on every forint. This differs from many EU countries that cap social contributions at a maximum earnings level. Verify with NAV (nav.gov.hu).
What is the difference between the TB contribution and szocho?
The TB jarulek (18.5%) is the employee contribution, withheld from your gross salary. The szocho (13%) is the employer's social tax, paid on top of your gross by the employer and never deducted from your pay. Only the 18.5% reduces your take-home; the 13% is an employer cost.
Do social contributions reduce my income tax base?
No. In Hungary the 18.5% contribution does not reduce the base for the 15% income tax -- both are calculated independently on the full gross. This is different from most countries, where contributions are deducted before income tax is applied.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.