Are you sure?

State awaits wave of payment from reclaimed severance packages

To date, HUF 64 million, a fraction of the targeted HUF 1 billion has been received by the treasury from reclaiming severance payments in the public sector, business daily Napi Gazdaság reported.

As one of Prime Minister Viktor Orbán’s initial measures after taking office last year, the government announced it would impose a 98% tax on all severances and financial compensation after unclaimed vacation days exceeding HUF 3.5 million in the public sector. In the case of MPs and mayors, the value threshold is HUF 2 million. The move is in effect retroactively, reaching back to 2005.

Payments are due on the same day as personal income tax declarations, namely May 20. The government is expecting a significant inflow having earlier calculated HUF 1 billion in prospective takings.