A significant change came into effect on 1 July 2025, regarding the amount of net income that can be subject to wage garnishment.
How much can be deducted?
The portion of net income that is exempt from deduction has increased from HUF 60,000 to 60% of the net amount of the minimum wage, which in 2025 amounts to HUF 116,029. This amount must always be paid to the employee.
The detailed rules of enforcement are set out in the Act LIII of 1994 on judicial enforcement (the “Vht.”).
Important new rule: protection of family tax and contribution allowances
As of 1 July 2025, family tax benefits are also exempt from deduction. This means that when determining the amount of net wages subject to deduction, any amount resulting from the application of family tax and social security contribution allowances must be disregarded. As a result, this amount remains fully payable to the employee in all cases.
It is important to note that this exemption only applies to enforcement proceedings initiated after 1 July 2025. In procedures started before this date, family tax and contribution allowances are still included in the deductible portion of wages.