Leave the payroll of young employees to the experts!

Every year, great attention is paid to current changes in taxation. Both employers and employees are affected by the tax modifications that come into effect each year.

It takes real expertise to navigate between proposed and actually implemented tax benefits. For a layperson, this can be even more difficult — they often find themselves lost in a sea of information from multiple sources. However, no one can afford not to stay up to date, as that could result in significant financial losses.

The challenge lies partly in the fact that there are always new updates one must keep up with, making it essential to stay informed. On the other hand, many are unaware of which deadlines apply to them or what specific changes affect their situation.

Every employee who qualifies naturally wants to take advantage of personal income tax benefits, and employers are strongly advised to apply these correctly and promptly. For employees, their income depends on it — and for employers, failing to comply with regulations poses a risk.

Tax benefit for employees under 25

Every employer can benefit from the professional support of an experienced and up-to-date tax advisor. A few years ago, the personal income tax benefit for employees under the age of 25 was introduced, and it’s worth taking a closer look at this topic.

This year, the benefit remains in effect, ensuring that eligible employees are exempt from paying the 15% personal income tax. But who qualifies, and for how long?

Employees under 25 must have full-time employment with their employer, and their income must not exceed a specified limit. In 2024, this threshold was HUF 576,601 in combined taxable income.

The employer must automatically apply the benefit during the eligible years or months, increasing the employee’s take-home pay. Last year, this meant an extra HUF 86,490 per month — a significant increase in net income thanks to the tax benefit.

This exemption affects hundreds of thousands of young people with combined taxable income, allowing them to save tens of thousands of forints this year. It’s important to note that the under-25 tax benefit is automatically applied by the employer unless the employee declares otherwise.

This is good news for employees, as in many other cases such benefits require a declaration or additional documentation. It’s also advantageous for employers, as it reduces administrative work in payroll processing.

For this reason, it is essential to entrust payroll management to a knowledgeable accounting professional. Up-to-date expertise and precise calculations ensure smooth and accurate administration.

Budapest accounting office with a wide range of services

A company’s or entrepreneur’s income — and even its future business success — can depend on its accounting. From payroll to consulting, everything can be handled in one place if you choose our accounting office and its services. Our firm has a long-standing professional background and has been a well-known and respected player in the field of accounting for decades.

If you need professional payroll services in Budapest, feel free to contact one of our colleagues at the office! It’s worth requesting basic information in advance — you can do so through any of the contact options listed on our website, by phone or message.