Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HU-2020-17/1266 – Updated – measures in Hungary
|Hungary , applies nationwide
|Temporary, 22 April 2020 – 31 December 2022
|Legislations or other statutory regulations
Promoting the economic, labour market and social recovery into a green future
– Support for spending, stimulus packages
|Nóra Krokovay (KOPINT-Tárki) and Eurofound
|07 October 2020 (updated 19 June 2023)
Government decree 58/2020 raises the ceiling for bonuses that employers can pay to employees on the SZÉP card to HUF 800,000 (€2,219) a year (from HUF 450,000) for private companies and HUF 400,000 (from HUF 200,000) for public (state budget-run) institutions. These payments will also be exempt from one type of social contribution (but it is not completely tax-exempt) for the duration of the pandemic.
The raised amounts in the SZÉP card bonuses paid by employers to employees is exempt from the social contribution szocho, but employers continue to pay 15% tax on the amounts provided during the COVID-19 pandemic.
The distribution of the entire HUF 800,000 maximum amount for different spending is as follows:
The measure was supposed to be applied until 30 June 2020. However, on May 23 2020 the tax exemption of the SZÉP card bonus payments was extended until 31 December 2020 (Govt decree 225/2020).
The government estimated that the measure could affect 115,000 people. In January-August 2019 (before the pandemic), Hungarians spent HUF 130 billion from their SZÉP card bonuses on tourism, up by 150% from the same period in 2018. A press report said that employer payments were up by 7% in January-August this year, as compared to the same period in the previous year while spending from the SZÉP card budget grew by 15% by August.
Employees in standard employment
Sector specific set of companies
|Does not apply to citizens
Company / Companies
Social partners' role in designing the measure and form of involvement:
Social partners' role in the implementation, monitoring and assessment phase:
The Hungarian Chamber of Commerce and Industry made suggestions in the design of this measure, according to press reports.
TU confederation MASZSZ proposed that the SZEP card system should relax the rules for the duration of the COVID-19 pandemic and allow workers to spend their allowance on catering instead of accommodation.
The retail sector requested that the bonuses be spent in grocery stores. The tourism sector proposed an extension until the end of 2021, but these proposals have not been included. Critics have questioned how this measure will help the tourism industry while the country is under lock down or partial curfew, but perhaps the bonus money was spent in tourism after the pandemic period (in the summer).
In December 2021, the hotels and caterers association Magyar Szállodák és Éttermek Szövetsége (MSZÉSZ) expressed surprise and concern over the measure to allow grocery purchases from the SZÉP card balance. This measure will reduce revenues in tourism, which has already suffered due to COVID-19, they said. Rural accommodation providers, restaurants, family businesses will suffer the most, MSZÉSZ added. The SZÉP card measures were regarded as a form of support for the tourism industry in 2021. See related measure Provisions relating to accommodation services .
|Sector (NACE level 2)
|I - Accommodation And Food Service Activities
|I56 Food and beverage service activities
|R - Arts, Entertainment And Recreation
|R90 Creative, arts and entertainment activities
|R91 Libraries, archives, museums and other cultural activities
|R93 Sports activities and amusement and recreation activities
This case is not occupation-specific.
Eurofound (2020), Employee bonus scheme SZÉP card limit rise, measure HU-2020-17/1266 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2020-17_1266.html
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