Changes in social security laws – things you should pay attention to in the summer of 2020

Over the course of the past few months, the COVID-19 pandemic has significantly changed the macroeconomic situation, and countries all around the world typically tried to use similar tools, mainly in the framework of accelerated legislative procedures, and involving the creation of targeted rules for the protection of the economy, to keep these changes under control. In Hungary, many of the Government decrees passed in recent types were also aimed at smoothing the waves of these effects.

In the meantime, economic operators, focusing on the economic protection action plan, were trying hard to adapt to the quickly changing economic and – at the same time – legal environment. The need for short-term change, as well as the provisions of law newly introduced in the recent period, however, cannot mean that we can neglect to prepare for long-term changes also, on the basis of rules that have been known to be introduced for a long time. The changes discussed in this issue of our newsletter have been known since November of last year, but the new Social Security Act (“Tbj.”) will only enter into force on 1 July 2020, which means that it is time to refresh our information about the changing rules. The changes codified in the new law, supplemented with the recently announced reduction, from 1 July, of the social contribution tax by 2 percent points to 15.5%, will significantly ease the public burdens on labour.

To read the whole newsletter below.