Cafeteria
A cafeteria system developed in accordance with various legal regulations is a fringe benefit that is cost-efficient and can be adjusted to the specific preferences of employees, and is popular with both employees and employers.
With the help of the cafeteria system, the employer is able to increase the net value of employee benefits with the related burdens remaining below the tax and contributions burdens of a wage increase of a similar magnitude.
The most popular cafeteria elements are the following:
SZÉP kártya - accommodation pocket and 'Aktív Hungarians' sub pocket,
- housing allowance,
- gifts of negligible value three times a year,
- the use of a car for private purposes,
- free of charge season tickets for sporting events or cultural services
A 15% personal income tax and a 13% social security contribution are payable on the total amount of non-wage benefits. The most significant component of non-wage benefits is the benefits that can be credited to the SZÉP card.
SZÉP card rules
The Széchenyi Recreation Card (Széchenyi Pihenő Kártya or SZÉP card) is an electronic voucher card that allows employees to use their fringe benefits easily, quickly, conveniently, and securely. There are 2 subaccounts - the 'Accommodation' and the 'Active Hungarians'.
The entire recreation budget applies to the 'Accommodation' subaccount, including the value limit and the tax liability. This means that up to HUF 450,000 per year can be transferred to the account as fringe benefits.
In addition, the annual limit of the 'Active Hungarians' subaccount is HUF 120,000, therefore HUF 10,000 per month could be transferred as a fringe benefit, and this amount is not included in the HUF 450,000 recreational budget. A maximum of HUF 60,000 per calendar half-year may be transferred to the subaccount as a fringe benefit. In order for the employee to receive such a benefit for the second calendar half-year, a declaration should be issued to their employer that they have already spent at least 80% of the amount received in the previous half-year.
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SZÉP card taxation
For fringe benefits, the reduced tax rates for SZÉP cards will remain unchanged from 1 January 2023. As a fringe benefit, 28% tax (social contribution tax and VAT) is payable.
The part above the tax-advantaged threshold is taxed as a certain defined benefit (with a tax burden of 33.04%).
Housing Assistance
Starting in 2025, housing assistance provided to employees under the age of 35 to help pay rent or make mortgage payments will be classified as a non-wage benefit, with an annual cap of 1,800,000 forints.
