Prime Minister Viktor Orbán earlier introduced changes to the tax system under which people living from doing household work for others, like cleaning, gardening or other handyman jobs will not be required to pay taxes. The only prerequisite is for their employers to report them and pay a monthly HUF 1,000 in healthcare contributions. The symbolic levy is commonly referred to as the “servant tax”. To enforce the rule, getting caught entails serious penal fees of up to HUF 100,000 not only for the unregistered workers, but also their employers
The response was stifled to say the least, as only 300 people were put on the record in January.
Critics of the provision pointed out that there is no genuine incentive involved, since it does not entail any rights that regular employees are entitled to, such as healthcare coverage.
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