Factsheet for case
HU-2020-17/1266
–
Updated
– measures in Hungary
Employee bonus scheme SZÉP card limit rise
A Széchenyi Pihenő Kártya formájában – béren kívüli juttatásként – adható összeg emelése és mentesítése a szociális hozzájárulási adó aló
Background information
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.
Content of measure
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 given during the COVID-19 pandemic.
The distribution of the entire HUF 800,000 maximum amount for different spendings is as follows:
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Up to HUF 400,000 (€1,110) on accommodation
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Up to HUF 265,000 (€735) on hospitality
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Up to HUF 135,000 (€374) on recreation
The measure was supposed to be applied until 30 June 2020, but on May 23 the tax exemption of the SZÉP card bonus payments was extended until 31 December 2020 (Govt decree 225/2020).
Updates
The following updates to this measure have been made after it came into effect.
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15 April 2021
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Under govt decree 178/2021 recipients of SZÉP card bonuses will be allowed to use the amounts placed in one of three categories for targeted spending (accommodation, meals and recreation) interchangeably, so any amount can be used for any of the three purposes. The rule applies until 31 December 2021.
|
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01 January 2021
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The measure has been extended until 30 June 2021. The amount of the bonus continues to be exempt from one type of social tax (
szocho
- 15.5%).
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Use of measure
The government has estimated that the measure could affect 115,000 people.
Target groups
Actors and funding
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Actors
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Funding
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National government
Company / Companies
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Companies
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
|
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
The Hungarian Chamber of Commerce and Industry was involved insofar as making suggestions in the design of this measure, according to press reports
Views and reactions
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 could be spent in grocery stores and the tourism sector proposed an extension until the end of 2021, but these proposals have not been included. Critics have questioned how this measure is supposed to help the tourism industry while the country is under lockdown or partial curfew, but perhaps the bonus money was spent in tourism after the pandemic period (in the summer).
Sectors and occupations
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This case is sector-specific (only private sector)
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Economic area
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Sector (NACE level 2)
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I - Accommodation And Food Service Activities
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I55 Accommodation
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I56 Food and beverage service activities
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R - Arts, Entertainment And Recreation
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R90 Creative, arts and entertainment activities
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R91 Libraries, archives, museums and other cultural activities
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R93 Sports activities and amusement and recreation activities
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This case is not occupation-specific.
Sources
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07 April 2020: Szép card to get tax reduction and limit raise
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22 May 2020: Govt decree 225/2020
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23 May 2020: Govt decree 140/2020
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16 June 2020: Act 58/2020 on state of pandemic emergency
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22 September 2020: Tourism Online: Szép card spending seen to break records in 2020
(turizmusonline.hu)
