Based on Government Decree No. 384/2024 (XII. 9.) of 9 December 2024 published in the Official Journal (amending Government Decree No. 76/2018 (IV. 20.) on the Rules of the Issuance and Use of the Széchenyi Recreation Card),the following significant changes will come into force from 2025.
More pockets, higher budget
The maximum amount of the benefit to be allocated to the SZÉP card – again divided to multiple pockets – will increase by HUF 120,000.
In order to promote an active lifestyle, from 2025 we can open a new pocket in the SZÉP card, where the employer can transfer HUF 10,000 per month.
This money may be used for sports and active lifestyle services.
Such services include, among others, passenger transport on cable cars, ski lifts, rental of sports equipment and sports facilities, swimming pool entry, fitness services and other sports and leisure activities, as listed in the Government Decree on the Rules of the Issuance and Use of the Széchenyi Recreation Card.
However, this benefit can only be used by the employee, and the close relative with an additional card may not enjoy these rights.
Annual amount that can be transferred to the SZÉP card in 2025
Overall, in 2025, employers can provide employees with up to HUF 450,000 annually in the accommodation pocket and an additional HUF 120,000 annually in the active lifestyle pocket of SZÉP card accounts, both under favourable tax conditions.
Please note: If the employment does not cover the entire year, the SZÉP card benefit amount must also be prorated.
Of the total annual HUF 570,000, the amount that can be provided under favourable tax conditions as a fringe benefit (with a 28% tax burden) is proportional to the number of days the employee was in the qualifying employment relationship with the given employer during the tax year.
The SZÉP card can also be used for renovation purposes, up to 50% of the budget
Up to 50% of the amount registered on the SZÉP card as of 1 January 2025 as well as the amount transferred by the employer until the date of use in 2025 can be used for house renovation in 2025.
This can be used to buy hardware, building materials, paint, glass, furniture, lighting equipment, crockery, cutlery and other household items.
Digitisation of the SZÉP card
As of 1 January 2025, payment service providers must issue the SZÉP card as a cash substitute payment instrument in the form of a plastic card and in a form that can be digitised on an infocommunications device.
Accordingly, OTP and MBH are now required to provide a digitised version of the SZÉP card to their customers, following K&H, which has already been providing customers with a digitised SZÉP card since spring.
The digitalisation of SZÉP cards issued before 1 January 2025 is expected to be required from 1 September 2025.
Housing allowance of HUF 150,000 per month granted by employers will be taxed in the same way as SZÉP cards
Based on the amendment to the Personal Income Tax Act, as of 1 January 2025 employers may provide their employees under 35 with a housing rent or housing loan repayment subsidy of up to HUF 1.8 million per year as non-wage benefits. The details are regulated by Government Decree 403/24, entitled "On Housing Support Available to Employees," published in Issue 129 of the Hungarian Gazette on 18 December 2024.
The new non-wage benefit will be available at a reduced tax rate similar to the SZÉP card, although it will not be transferred to the SZÉP card. The maximum amount that can be granted as non-wage benefits can ease the housing burden of young workers by HUF 150,000 per month.
From a tax point of view, it is a significant benefit if the employee receives a net monthly amount of HUF 150,000 as a non-wage benefit, as only HUF 42,000 of tax is payable on the net housing allowance, compared to the net monthly amount of HUF 150,000, on which the total amount of tax payable is HUF 104,888.
The part of the allowance above the HUF 150,000 monthly threshold, but which meets the other legal criteria of the allowance, may be granted in the form of certain defined benefits, in which case the tax base must be increased by 1.18 times the amount of the allowance, and the 15% personal income tax and the 13% social contribution tax must be paid on the tax base, which means a tax burden of 33.04%.
Where can you use the SZÉP card in 2025?
- accommodation services,
- bath and swimming pool pass,
- meals (including catering services at the workplace),
- services for leisure, recreation and health,
- in 2025 for house renovation, but the amount that can be used cannot exceed 50% of the amount of the benefit registered in the payment account on 1 January 2025 and the amount transferred to the account in 2025 until its use.
- services related to an active lifestyle.
What should employers pay attention to when making SZÉP card transfers in 2025?
When SZÉP card contracts were signed, card issuers opened sub-accounts for all employees, meaning every cardholder employee has a SZÉP card accommodation account number. Employees can find their accommodation account numbers in their SZÉP card contract or on their card issuer bank’s portal. Employers must transfer SZÉP card benefits to the employees' accommodation account numbers, up to a maximum of HUF 450,000, while ensuring compliance with favourable tax rates.
The new sub-accounts called "Active Hungarians" linked to SZÉP card payment accounts will become available from 2025. Benefits provided by employers within the specified limit will be taxed as fringe benefits and can be used for services related to an active lifestyle. The total specified limit, even from multiple providers, may not exceed HUF 120,000 per year.
