Tip and service fee: Dos and don’ts

As the new the social security law contains changes related to the social contribution payment rules, the Guild of Hungarian Restaurateurs (MVI) has updated its tip and service fee guidelines. As of 1 July 2020 service fee qualifies as revenue for which it isn’t the employer that is obliged to pay a 15-percent old age pension contribution on behalf of the employee from now on – instead of this 18.5 percent must be deducted from the pay of the worker as social security contribution. Tip: the new law stipulates that it isn’t possible to voluntarily pay a 15-percent old age pension contribution for tips any more.

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