Every autumn, parents with children are faced with the fact that the cost of sending them to school is not cheap. Many ask for and receive help from their employers, but fewer know what other options are available. In this summary, we look at ways to ease this annual expense for employees and employers.
Many employers feel obliged to provide financial support to their employees to ensure a smooth start to the school year. So let's start by summarising what employers can do.<\/p>\n\n\n\n
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Although a wage-related benefit, i.e. paid with the salary, is the simplest form of support, it is also the most expensive solution for both sides - as both the employee and the employer are liable to pay tax.
As the employer's objective is essentially a single allowance, it is worth taking into account the different employee tax benefits when calculating the amount of the allowance. If a gross amount is set, the net benefit itself may not be the same. An employee who claims a tax allowance and as a result pays no personal income tax or even no contributions will receive a higher net benefit than an employee who does not claim a tax allowance.
Employees can be offered a small gift under more favourable tax conditions, but this form is subject to conditions. According to \u00a7 70 (9) a); \u00a7 69 (3) and (4) of the Income Tax Act, a gift of negligible value:<\/p>\n\n\n\n
According to the provisions of the VAT Act, goods or services can be given as a low-value gift instead of a voucher, such as a school bag, but the most common form of this is a voucher ordered from a company issuing a voucher.<\/p>\n\n\n\n
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Let's compare the simple case where an employer wants to give 29 000,-Ft to employees with school-age children.<\/p>\n\n\n\n An important point to note is that whatever form of financial support an employer chooses, it must ensure that all employees with children receive the benefit on equal terms, based on the principle of equal treatment.<\/p>\n\n\n\n <\/p>\n\n\n\n Experience shows that few people are aware of this option, which is why few parents take advantage of the self-help service available through health funds. However, under this scheme, the contributions paid can be used for back-to-school expenses up to the amount of the minimum wage (\u20ac290,800 in 2025). Moreover, this does not only apply to individual contributions: the health insurance contribution paid by the employer can also be used, as these amounts together form the member's fund balance. <\/p>\n\n\n\n As the previous 180-day waiting period for self-help services has been abolished as of 1 July 2025, the amount paid can be used almost immediately. For paid contributions, those who pay personal income tax will be entitled to a 20% tax refund on their tax return, which can be claimed on the health fund or voluntary pension fund account. It is important to bear in mind that the special back-to-school option is available once a year. Please check with your health fund for detailed conditions.<\/p>\n\n\n\n <\/p>\n\n\n\n Families in need can also apply to local authorities for schooling support, which typically amounts to HUF 10-20,000 per child. There are some municipalities where the amount is higher, but the bottom line is that support is income-related, so you will need to provide proof of this when applying. <\/p>\n\n\n\n Offering a full range of tax advice services, Moore Hungary provides effective expert support to employers to ensure that all employees with children receive the back-to-school allowance on an equal basis. Follow us on LinkedIn for more news!<\/strong><\/p>\n\n\n <\/td> Salary-related allowance<\/strong><\/td> Low value gift \/ occasion<\/strong><\/td><\/tr> Net amount of benefit<\/td> 29 000<\/td> 29 000<\/td><\/tr> Gross amount of the wage-related allowance<\/td> 43 609<\/td> 0<\/td><\/tr> Employee tax and contribution burden*<\/td> 14 609<\/td> 0<\/td><\/tr> Tax burden on employers<\/td> 5 669<\/td> 9 582<\/td><\/tr> Employer link<\/td> 49 278<\/strong><\/td> 38 582<\/strong><\/td><\/tr><\/tbody><\/table>
<\/p>\n\n\n\nThe opportunities for workers are much wider than first thought<\/h2>\n\n\n\n
The procedure is similar to that for health insurance: an invoice must be requested for back-to-school expenses (school supplies, school equipment, clothing, digital equipment from this year), which must include - in addition to the member code - the name and address of the child declared as a close relative, in respect of whom the family allowance is paid. It is important to obtain official proof of the payment of the family allowance from the Treasury. The claim form, together with the above-mentioned annexes, can be sent by e-mail to the health insurance fund within 120 days of the date of issue of the invoice.<\/p>\n\n\n\n
<\/p>\n\n\n\nThe health insurance option is available once a year<\/h2>\n\n\n\n
Let's look at a simple example calculation for a health fund back-to-school allowance.<\/p>\n\n\n\nPayment of membership fees<\/td> 300 000<\/td><\/tr> operating costs 6%<\/td> 18 000<\/td><\/tr> amount available<\/td> 282 000<\/strong><\/td><\/tr> Tax refund 20% for the coming year<\/td> 60 000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/p>\n\n\n\nThe municipality also supports school start-ups<\/h2>\n\n\n\n
The amount of the allowance, the income limit and the exact deadline for the application may be individual for each municipality. What is common is that the application can be made once per child between August and November. Detailed local information can be obtained from the municipal offices.<\/p>\n\n\n\n
<\/p>\n\n\n\nMoore Hungary also helps to set up a workplace framework for back-to-school support<\/h2>\n\n\n\n
We can help you find the optimal form of support, with expertise in business, finance, M&A, legal, tax, accounting, hotel and tourism, ESG, NIS2 industry consulting and auditing.
In our fast-changing world, Moore provides strategic guidance and practical advice to help clients navigate and understand the complex regulatory and changing market environment and industry conditions, and thereby find the best solutions.
More information about Moore Hungary and its services is available on the consultant's website: www.mooreglobal.hu<\/a>.<\/p>\n\n\n\n