One of the most common questions we receive in the course of our work is: „If I offer X HUF gross salary, how much should I transfer to the NAV and how much to the employee?” The gross wage is only the tip of the iceberg. In this post, we will help you understand the structure of the total wage bill (the so-called „super gross”) so that you can plan accurately for expansion.
The starting point: the difference between Gross Wages and Net Wages
Before we look at the burden on the company, it is important to clarify what the employee sees from this. When a gross wage is agreed, taxes and contributions are deducted from the employee.
Personal Income Tax (PIT): 15% of gross salary.
Social Security Contribution (SSC): 18.5% of gross salary.
The Net salary is therefore the amount the employee receives in his/her bank account: gross salary - PAYE (15%) - social security (18.5%). These two items are deducted by the company from the salary and transferred to the NAV together with its own charges.
Burdens on the company: what is payable in addition to the gross salary
And now comes the point: what is it that the company has to pay to the state in addition to the gross wage? The answer is a single but all the more important item.
Social Contribution Tax (SZOCHO)
This is the most significant tax on the employer, at a rate of 13% of gross pay. The SOCHO combines several previous taxes (e.g. social contribution tax, vocational training contribution) and covers part of the state's social expenditure.
The total wage costs of the enterprise can therefore be calculated as follows:
Total Salary Cost = Gross Salary + Social Contribution Tax (13% of gross salary)
This means that the total cost of an employee to the company is 1.13 times the gross wage.
Let's look at a concrete example (with 2025 estimates)
Suppose we hire a skilled worker for the guaranteed minimum wage expected in 2025, which is 326 000 HUF gross. How does this look in numbers?
1. Deductions from the employee:
VAT (15%): HUF 326 000 * 0,15 = HUF 48 900
Social security contribution (18,5%): 326 000 HUF * 0,185 = 60 310 HUF
Net wage (what the employee receives): 326 000 - 48 900 - 60 310 = 216 790 HUF
2. The burden on the employer (your company):
SZOCHO (13%): 326 000 HUF * 0,13 = 42 380 HUF
3. The full picture:
Net wage of the employee: 216 790 HUF
Total taxes and contributions paid by the company (48 900 + 60 310 + 42 380): HUF 151 590
Total cost of the business: HUF 326 000 (gross salary) + HUF 42 380 (SZOCHO) = HUF 368 380
As the example shows, a gross salary of HUF 326 000 actually costs the company HUF 368 380, while the employee „only” sees HUF 216 790 in his/her account.
But that's not all! Other hidden costs
In addition to the total salary costs, the recruitment of a new employee may involve additional, non-direct costs that need to be taken into account in the financial planning:
Working tools: laptop, phone, software licences.
Place of work: office rent, per capita share of overheads.
Compulsory medical examination: cost of a company medical examination on entry.
Cafeteria and other benefits: SZÉP card, travel allowance.
Administration fees: fees for payroll and for processing entries and declarations.
Hiring your first employee is a huge step that requires thorough financial preparation. Our most important advice is to never just count on the gross salary. Always use a multiplier of at least 1.13 to estimate the total wage bill and plan for the other expenses mentioned above.
Payroll is a special profession that requires knowledge of constantly changing legislation and extreme precision. We are here to take the burden off your shoulders completely. We make sure that your wages are calculated accurately and that your returns and data are submitted on time, so that you only have to pay your net wages and payroll taxes on time.
If you are on the verge of expansion, contact us and we will help you with your financial planning!