Social contribution tax and ’KIVA’ tax rate changes effective from 01.01.2018

  1. CLVI. Act on the reduction of the social contribution tax and the amendments of related acts was published on 23 November 2017 in the Hungarian Journal.

In line with that effective from 01.01.2018:

  • social contribution tax (Szocho),
  • health care levy (EHO),
  • and the simplified public service contribution (so-called ekho)

tax rates will be decreased from the current 22% to 19,5%.

According to the 2012. CXLVII. Act on small taxpayers’ itemized lump sum tax and small business tax, the small business tax (so-called KIVA) rate will be reduced from 14% to 13%.

The following table shows the changes for minimum wage per month (in HUF):

2017 2018
Minimum gross wage 127.500 138.000
Guaranteed minimum wage* 161.000 180.500


*in case of positions requires secondary level education or secondary vocational qualification at least