From next year, employers will be required to pay social security contributions based on the “typical wage for the activity” – tevékenységre jellemző kereset; a term recently introduced with changes to tax laws – and not according to the minimum wage as is currently the case, vg.hu writes. While the change will result in higher contribution burdens for many employers, many are also likely to benefit from the new situation.
Employers currently are obliged to pay social security contributions for double the minimum wage; a proportion known as the “minimum contribution fund.” Employers who do not make enough profit to cover this contribution must declare this in order to receive relief on these payments. However, this raises the likelihood of a tax audit considerably.
The government increased its tax income considerably when it raised the default rate of contributions to twice the minimum wage, currently at around Ft 65,000 (€240) a month. Some 27% of the working population is currently on the minimum wage, although their actual earnings may be several times more.
National tax office APEH found that in 2008, over 6,500 enterprises were checked, and four-fifths of these successfully proved that they did not reach the minimum profit. However, this number is low compared to the total number of enterprises.
The gov’t continues to lurch about, failing to recognize that it’s the tax system itself that breeds avoidance. By making staff too expensive to employ, employers have to resort to under the table, and minimum salaries and/or making all staff contractors.
This rule, along with so many others, reinforces the messages that the country is corrupt, riddled with problems and 1/2 fixes and leaps from 1 draconian measure to the next.
If the country truly wants to build for the future, it needs to give people a fair playing field with reasonable rules. That’ll lead to real wage reporting, tax payments and the statistics to measure the country’s performance.
Rolrox, you are such a perennial dreamer, Buddy. Look around and get real, pls. Or why not move on over to Slovakia, Bohemia, or Romania instead, Friend? Those countries already know what you seem to be preaching to the Hungarians, see? The Honkies in charge, well they are not at all too receiptive to economic reason, see?
@Expat. Focus on the points rather than on me, as that would be more interesting. Also, explain what You mean by “honky.” I’m familiar with the term, but cannot fathom how it applies to your point.
MESSAGE TO THE ROLROX:
“Explain what You mean by “honky.” I’m familiar with the term, but cannot fathom how it applies to your point.”
Gladly, Friend. “Honky” is the collective nickname of HUNGARIANS, used primarily in such countries as the United States, Canada, Australia, etc.
BTW, have you ever heard of the term “Pollack?” Now, that is used to describe, in short, the people of POLAND or of Polish ancestry.
I certainly do not mind when someone calls me a Honky — why, do you? BTW, “Honky Tonk Women” by the R. Stones has got nothing to do with it.
Wow, this is the first time I heard ‘Honky’.
Rollie, I was referred to as a “Honkie” dozens of time overseas, and never once got bothered by it. It is an affectionate short for the word “Hungarian,” which most people could not spell and have no clue about, anyhow.
Sort of like calling a “Polish person” simply a Pollack.”
Also, the African-Americans and other Blacks refer to white skinned people in general as “Honkies” or as “White trash” or as “Honky trash,” but admittedly, those terms are slightly more degrading than when someone calls a Hungarian a “Honkie” not because he is white skinned trash, but because he/she hauls from Hungaria.
so glad that we’ve sorted out the social security situation boys….
rolrox you are correct, unfortunately as it was sort of pointed out, theory is unlikely to be put into practice by those under the big top. (that would be the parliament, just to avoid confusion)
Here you go again, Quasi-Rolrox, with your already wholly discredited utiopian ideas. Wakie-wakie, Rollodexowski!!!
You fantasize anew, like what “if the country truly wants to build for the future,” and so on.
So, let me ask you outright, Rolex Watch Man: is that really what you think that Messrs. Gyurcsany and Bajnai want to do in Hungary? Really, you do? Or do you maybe just like to hear your own voice, passing yourself off to the lowly masses as RealDeal.hu’s resident wise owl messiah and salvation eggspert?
Pour a bucket of cold water on your head and get real, finally. What you are fantasizing about is NOT going to happen in Hungary. Certainly not just because apparently you wishes it so.
With respect to the term “Honky,” if applies to Hungarians in only the following two ways: (1), it is an abbreviation of the word “Hungarian.” And (2), it is a short but descriptive term used by some to describe white skinned people in general. Therefore, Gypsies and Romas are definitely NOT “Honkies.”
Glad I was able to help, My Dear Rolrox. BTW, if you really do not think that the Hungarian SS tax system is fair, you have but one real choice, I suppose: leave Hungary. For instance, in the country where I happen to reside rather happily, I have no sleepless nights, sleepless hours, or even sleepless minutes about Hungary’s abominable tax regimen.
It’s all good, really it is, so chill out already, My Dear Worked-up Rolrox.
Rolrox@Aug24. Excellent posting and everything
you say is correct.
Do not concern yourself with the resident rottweiler ExPatriciaHUN.
ExPatricia is an old queen and he suffers greatly with “piles” and “constipation”.
Why Erik continues to employ the sad bastard I can’t imagine?
Ignore the old fucker and continue to post your
erudite and informative articles, Rolrox.
This site and et al need the oxygen of clear-thinking individuals like yourself.
I will render my opinion on the main issues covered in the article above in due course.
Prelude, why don’t you just shag Rolrox on RTL Klub reality TV and show us how you really appreciate him (and his shapely bottocks)! I heard that you “almost did him” at the Gay Shame Parade last week! Any truth to that?
Bela..Bela Lugosi? Werewolf incarnate?
Are you back at school flicking ink pellets at
your classmates? You one-brain cell moron!
It was you on that milk float dressed in pink flaunting your arse sing Y M C A at the bumbashers
carnival the other week.
Is Erik emplying shitbags like you to create
supposedly educated debate? FUCK OFF. NOW!!!!!!
@RxSec, i love how you drag Erik’s name into eveything.U really hate him, dont you?