Dear Clients, Dear Readers,

In our newsletter, we will give you an overview of the current fringe benefit elements and their tax rates applicable in the year 2025 following the changed rules adopted last days of November 2024.

The tax rate to be paid by the payment agent will not change next year. Some thresholds will be raised due to the increase in the minimum wage to HUF 290,800.

The following elements are added to the range of tax-free and tax-advantaged fringe benefits.Accommodation allowances as a non-wage benefit with a 28% payer tax rate

From next year, employers may grant an allowance of HUF 1 800 000 per year as a non-wage benefit to employees under 35 years of age, provided they have been employed for the whole year:

• under a tenancy agreement or
• housing loan contract.

Extending the scope of the SZÉP Card

In the future, 50% of the amount transferred to employees’ SZÉP Cards will also be available for housing renovation. This amount will be calculated based on the balance on the SZÉP card on 1 January 2025 and the employer’s allowance transferred to it until it is used.

A maximum of HUF 120,000 per year transferred to the new SZÉP card sub-account called Active Hungarians can be used to promote active lifestyles and sports activities, as defined in a separate government decree.

Together with the two sub-accounts of the SZÉP card, the annual limit will thus increase from HUF 450,000 to HUF 570,000, for which the employer will be subject to a 28% tax on non-wage benefits. The employer’s contribution tax rate will remain unchanged at 33.04% for benefits exceeding the annual limit.

New tax-free benefits for individuals

In addition to admission tickets, season tickets for sporting events, cultural services and library fees, next year zoo admission tickets will also be tax-free up to the monthly minimum wage.

The amount of damages awarded by a court in a lawsuit and tips paid by a guest to a waiter not only in cash but also by card or bank transfer will be tax-free in 2025, if the catering business’s records show that the tip is due to the employee who served the guest.

Next year, employers will be able to contribute tax-free to the repayment of an employee’s student loan.

Please find the list of fringe benefits for the year 2025.

_{[1] the minimum wage is HUF 290’800 in year 2025}

_{[2] maximum amount in 2025 HUF 58’320 / month}

If you are also thinking about the application of fringe benefits or SZÉP Card and you want to provide it with less administration but give more flexible options to the employees, we would like to call your attention to our cafeteria software.

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We hope that the overview above can support you in your decisions regarding cafeteria benefits in 2025. Our colleagues will be pleased to help you in interpreting the rules detailed above.

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Kind regards,

ABT Treuhand Group