What is wage garnishment in Hungary?
Wage garnishment (letiltás) is an order that requires a Hungarian employer to deduct money from an employee’s pay and send it to a creditor. It usually comes from a court bailiff under Act LIII of 1994 on judicial enforcement, or directly from a court, for example for child support. The employer has to apply it, and the bailiff can check its records.
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Under section 161 of the Labour Code, deductions from pay are allowed only:
- under a law, as with income tax and social security;
- under an enforceable decision, up to the part of the wage that is protected;
- for the employer’s own claim, with the employee’s consent and up to the protected part, or to recover an advance.
Deductions that benefit the employer, its representative or an agent in return for hiring someone or keeping them in the job are prohibited.
The limits
Limits apply to net pay after tax and contributions. As a rule, at most 33% can be deducted. The limit rises to 50% for maintenance, unpaid wages owed by the employee and wrongly received wages or social security benefits, and for several garnishment orders at the same time.
Part of the pay is protected: the amount up to 60% of the net minimum wage cannot be garnished, except for child support. Above HUF 200,000 of net monthly pay, the excess can be garnished without limit.
What the employer has to do
The employer deducts the amount in the order and pays it to the creditor or, in some cases, the bailiff’s account. Several claims are paid in the order the law sets. For claims of the same rank, the first order to arrive goes first, unless a court orders them to be paid in proportion. If the employee changes job, the order extends to the wages from the new employer without a new one.
Garnishments when TopSource runs your payroll
When TopSource runs your payroll in Hungary, we apply each order against the limits and the protected part of pay, pay the creditor and show the deduction on the employee’s pay statement.
Frequently asked questions
How much of a salary can be garnished in Hungary?
Usually up to 33% of net pay, or up to 50% for maintenance and certain other claims, or where there are several orders.
What part of a wage is protected from garnishment?
The amount up to 60% of the net minimum wage, except in the case of child support.
Can a Hungarian employer deduct its own claims from pay?
Only with the employee’s consent and up to the protected part of the wage, or to recover an advance.
Related terms in Hungary
- Written Employment Information (Hungary)
- Fixed-Term Employment Limits (Hungary)
- Simplified Employment (Hungary)
- Overtime Cap (Hungary)
- Telework and Home Office Rules (Hungary)
- Additional Leave (Hungary)
- Protected Periods and Dismissal Justification (Hungary)
- Termination by Mutual Agreement (Hungary)
- Non-Compete Agreement (Hungary)
- Works Council and Collective Agreements (Hungary)
- Guest Worker Permit and Single Permit (Hungary)
- Occupational Safety and Medical Aptitude Exam (Hungary)
- KATA and Contractor Misclassification (Hungary)
- Overtime Premium (Hungary)
- Shift and Night Work Supplements (Hungary)
- Commuting Cost Reimbursement (Hungary)
- Payslip Requirements (Hungary)
- Tax Advance Declaration (Hungary)
- Business Travel Per Diem (Hungary)