Hungary: Tax burden doubles on seasonal agricultural works

How will this affect the labor shortage in agriculture?

A person's hands are shown, holding strawberries, in a field.
Beeld: ©Roman Kraft

The governmental decree on “taxes on extra profits” will substantially increase the employment tax on temporary work. This was reported by, based on an in-depth overview by the tax and accounting portal

Temporary work is based on simplified employment rules in the Hungarian legislation, and includes four categories: Seasonal agricultural work, seasonal touristic work, unspecified temporary work, and acting work as a motion picture industry extra.

Temporary work is a type of employment where the employment contract is valid for a maximum of five consecutive days, for a maximum of fifteen days in a month, and a maximum of ninety days in a year – So the typical example is seasonal workers in agriculture working in the harvest.

The governmental decree establishing the “tax on extra profits” (Govt. Decree 197/2022 (VI. 4.)) changes the tax burdens on these categories as of July 1, 2022.

The tax on the employment of agricultural and touristic seasonal workers will double from €1.27/person/day to €2.54/person/day.

For unspecified temporary workers, the tax burden will double from €2.54/person/day to €5.08/person/day, and the tax for motion picture extras will increase from €10.15/person/day to €15.22/person/day.


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