Employers can help with the start of school with a small gift

The preferentially taxed benefit is the so-called small-value gift, most often provided in the form of a voucher. This year, the maximum amount is HUF 29,080, equivalent to 10% of the minimum wage. The gift can be given directly to the parent or even to the student, and it may take the form of a product, service, or voucher.

For employees, the benefit is tax-free, with all contributions paid by the employer. Employers must keep records of the gifts provided, and in the case of vouchers, it must be specified what products or services they can be redeemed for.

A new rule introduced in 2024 allows employers to provide this support up to three times a year, rather than just once.

It is important to note that if the back-to-school support is provided as cash, it becomes fully taxable income as employment earnings, regardless of the amount.