Wage earners in Hungary taking home at least HUF 202,000 a month gross will see their net salaries increase by almost 5% from 2013 with the the phasing out of a system of “supergrossing” – a.k.a szuperbruttó. As of 2010, social contributions paid by employers became taxable, which means wage earners have paid taxes on HUF 127 for every HUF 100 they earned.
The changes came alongside a move to a flat personal income tax, which saw take-home pay for higher earners leap, while those on the lower end of the income scale saw their paychecks cut – which in turn led to a move by the government to pressure employers into giving raises to those on smaller salaries.
As a result of the 2013 phase-out, wage earners with HUF 250,000 gross per month will make HUF 24,000 more a year. Employees with HUF 500,000 will earn HUF 154,800 more, while those earning HUF 1 million a month will take home HUF 414,000 more a year. [penzcentrum.hu]