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Taxing labour

Given that the implicit tax burden on labour (38.4% in 2011) is still higher than the EU average (35.8%) and the average of the Visegrad countries (35.4%), overtaxing labour has been mitigated in Hungary and thus the difference compared to international levels also decreased since 2008. However, the tax wedge on low –wage earners has strongly increased.

Tax wedge on labour costs

Sources of data: 
Eurostat

Tax and social contribution in wages

percentage
Sources of data: 
Eurostat

Unemployment trap

Tax rate on low wage earners
Sources of data: 
Eurostat

Tax types for enterprises

millió forint
Sources of data: 
KSH

Tax burdens for enterprises

millió forint
Sources of data: 
KSH