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Shall all contributions be deducted from employees' income, but only 4 percent (maximum HUF 7 710) health insurance in-kind contribution be paid to the state?
As per Section (1/a) of §18 of Act LXXX of 1997 on the Eligibility for Social Security Benefits and Private Pensions and the Funding for These Services (hereinafter referred to as: the Social Security Act), the taxpayer shall pay health insurance in-kind contribution, financial health insurance contribution and labor market contribution, as well as pension contribution payable by the insured individuals.
According to the regulations of the Social Security Act, the employer is not obliged to pay individual contributions, that being the employee's obligation.
As per Section (1) of § 50 of the Social Security Act, the employer is obliged to calculate and deduct the healthcare and labor market contribution, the pension contribution and contributions to be paid by the employee based on the contribution basis paid to the insured individual in the month concerned. Under the Tax Act, the calculated contributions for the month concerned shall be reported and paid to the NTCA [NAV] latest by the 12th of the following month.
Section (2) of §1 of Government Decree No. 61/2020 (III.23) provides for easing of the general rules of the Social Security Act in that the contribution payment obligation shall be performed differently, meaning that only the 4 percent health insurance in-kind contribution, maximum HUF 7 710 per month, shall be paid after the income which is the contribution basis. Payment performance of the contribution payments is the employer's duty; therefore, the employer shall only deduct from the private individual and transfer the 4 percent, the amount not to exceed HUF 7 710. The employer, however, may not “keep" the remaining contribution value, as it would not have been his obligation to begin with, but the obligation of the private individual, and the legislative intent is to provide assistance to employees.
In any case, the purpose of a contribution is always to provide funding for some sort of social security service, thus the employer is in no way entitled to receive it. Employers are supported by the exemption from their social contribution tax payment obligation under Government Decree No. 61/2020 (III.23).
Source: National Tax and Customs Administration (NAV)
According to the regulations of the Social Security Act, the employer is not obliged to pay individual contributions, that being the employee's obligation.
As per Section (1) of § 50 of the Social Security Act, the employer is obliged to calculate and deduct the healthcare and labor market contribution, the pension contribution and contributions to be paid by the employee based on the contribution basis paid to the insured individual in the month concerned. Under the Tax Act, the calculated contributions for the month concerned shall be reported and paid to the NTCA [NAV] latest by the 12th of the following month.
Section (2) of §1 of Government Decree No. 61/2020 (III.23) provides for easing of the general rules of the Social Security Act in that the contribution payment obligation shall be performed differently, meaning that only the 4 percent health insurance in-kind contribution, maximum HUF 7 710 per month, shall be paid after the income which is the contribution basis. Payment performance of the contribution payments is the employer's duty; therefore, the employer shall only deduct from the private individual and transfer the 4 percent, the amount not to exceed HUF 7 710. The employer, however, may not “keep" the remaining contribution value, as it would not have been his obligation to begin with, but the obligation of the private individual, and the legislative intent is to provide assistance to employees.
In any case, the purpose of a contribution is always to provide funding for some sort of social security service, thus the employer is in no way entitled to receive it. Employers are supported by the exemption from their social contribution tax payment obligation under Government Decree No. 61/2020 (III.23).
Source: National Tax and Customs Administration (NAV)