Wages in euros: a possible alternative in Hungary?

With rising inflation and a weakening forint, the possibility of using the euro in the Hungarian economy is an increasingly common topic. Understandably, employees would benefit most from getting their wages in euros instead of the ever weakening Hungarian currency. But is it possible in this country?

Since August, corporate tax can be paid not only in forints, but also in euros or US dollars. In what other cases is it possible to pay in foreign currency instead of HUF under the current rules in Hungary? Napi.hu has taken a look at them.

Although it may seem attractive to be paid in euros, this is not possible under the relevant legislation. Your wage must be paid in forints. However, exceptions to this are so-called “managerial employees” and working abroad. Although the law also states that legislation may provide otherwise, there is currently no legislation in force that allows wages to be paid in a currency other than forints in other cases.

• Read also: 20 percent inflation on the way in Hungary

For companies, foreign currency transactions and invoicing may also be a reasonable option, napi.hu adds. This is possible under Hungarian law even in relations between Hungarian companies. “However, when accounting in a foreign currency, it is important to keep in mind the financial rules, such as the VAT law,” warns Torsten Braner, head of the Budapest office of Taylor Wessing.

As things stand at the moment, the average employee in Hungary will not get their monthly wages in a foreign currency anytime soon.

Source: napi.hu, ado.hu