Over the past years, the number of casual and seasonal employees in Hungary has reached nearly 320 thousand, however, according to the Government, many employees are only registered as such because of the tax benefits associated with the forms of simplified employment.
Casual employment means any employment relationship between the same parties that lasts for a maximum of 90 calendar days per annum in total and a maximum of 15 days per month in total if none of its continuous periods exceeds 5 calendar days. Seasonal employment allows employment relationships between the same parties for a maximum of 120 days per year in total; its two main types are agricultural and tourism.
Since February 2025, the daily tax rate payable by the employer in respect of these employment relationships has increased as a result of an amendment to the Act on Simplified Employment. For seasonal work, the daily tax rate has increased from 0.5 to 0.75% of the minimum wage (HUF 2,200); for casual work, from 1 to 1.5% (HUF 4,400). The daily tax rate on the casual work of film industry extras has not changed: it remains 3% (HUF 8,700). From February, the calculation basis of pensions will be 2.1% of the minimum wage (6,100 HUF) per day for seasonal work; 4.2% of the minimum wage (12,200 HUF) per day for casual work, and 2.8% of the minimum wage (8,100 HUF) per day for casual work as a film extra.
From July 2025, if an employee works more than once in casual work, seasonal work or both per calendar year, the combined duration of these employment relationships may not exceed 120 days per calendar year. The purpose of this rule is to prevent employers from registering ‘normal’ employment (that is out of the scope of the Simplified Employment Act) as if it were casual or seasonal work to obtain a tax advantage. Nevertheless, until July, the Ministry of National Economy may fine-tune the amendment to ensure that it does not impose a disproportionate administrative burden on casual and seasonal employees.
By Levente Csengery, Partner, KCG Partners Law Firm
