1.The amount of social security contributions payable by a Hungarian employer has changed with effect from 1 January 1997 as follows:
1996 1997
Health insurance contribution 18% 15%
Health contribution - HUF 1,800/month
Pension contribution 24.5% 24%
Total 42.5% 39%+HUF 1,800/month
2. Social security contributions payable by a Hungarian individual will remain 10% in 1997.
3. There are no significant changes in the scope of contractual relations which are subject to social security. These include: employees, members of co-operatives, freelance workers and persons working on the bases of a specific contract. However, a significant change is that the taxable base for social security contributions has been extended from salary-type payments to income which is subject to personal income tax unless specifically exempt. The exemptions
