Fidesz MP submits proposal for new 27% payroll tax

In Hungary

Fidesz MP Antal Rogán has submitted a motion for a new 27% payroll tax, in an amendment proposal submitted to next year's tax laws.

The proposal has been published on Parliament's website. The proposal says the new tax is to replace the health insurance contribution, the labor market contribution and the pension contribution paid by employers.

Under a previously submitted amendment proposal to the social security act, it would become possible to establish payment obligations due to the social security funds that do not generate entitlements to social security services, breaking the link between payments in and out of the social insurance system.

A second proposal would set the minimum wage as the basis for the pension contribution, and the basis for the health insurance and labor market contribution would be 150% of the minimum wage.

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