Regarding taxation, employment through a school cooperative is evidently the most advantageous. Until the age of 25, a student is not required to pay neither personal income tax nor tax contributions. It is worth noting that according to a government decree which entered into force on April 3, 2022, the minimum service fee payable to the school cooperative is 1,178 times the hourly fee paid for the member. And the hourly rate is at least a total of the minimum wage projected for one hour.

It is less known that there is a limit to this benefit: It applies to a tax sheet amount of up to 433,700 forints a month. The payer deducts their personal income tax from that amount.

A student under contract of employment does not have to pay a personal income tax if they meet the requirements of the tax benefit. However, their income makes up a contribution fund from which their employer deducts an 18.5 percent social security contribution.

Employment of international students

An international student can claim the tax benefit for people under 25 from the salary or assignment fee foreign tax residence if they

The tax benefit for youths under the age of 25 can be used by an international student in their salary as long as they do not have a similar benefit for that period of time in another country. Furthermore, of the entire income they make in that fiscal year – including any income that is not taxable in Hungary – 75 percent must be taxed in Hungary. A separate, additional declaration is required for a tax authority abroad in order to receive the tax benefit.