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Salary After Taxes = Net Income?

Hi,

I was offered a job position in Budapest with a "After Tax Salary" of 300K to 360K HUF.

I am a bit confused with the After Tax Salary. Does that mean that the 300K to 360K monthly will be the net income, meaning that will be my "take home" income and no more deductions will be applied?

I hope someone will answer this question. Thanks!

After taxes is net income.

300,000 HUF is more of a liveable wage.
I hope someone let's you know the tax rate here, it's high I know that but I do not work in Hungary, just living off my past "slavery" as a retired person from the US in HU.
I am not sure about the going exchange rates but 300,000 HUF is about $1,200 in US dollars before taxes.
I am also not sure but do believe this is quoted to you before taxes in Hungary, I hate to guess though.
Rents have gone up in Budapest so even a studio apt. could be a big chunk out of your take home pay. Food is reasonable here if you cook at home.
My cousin lives in the Philippines on USDI which is a bit higher then
$1,200 but not much more, he takes care of his wives family but isn't living large over there either, big family.He also was spending some of his income on his church business and getting school books to kids over there, got to be too much for him I think because he has moved from that village to another several hundred miles away.
Hope someone who actually works in HU gets back to you with more details, you can do it for 300,000 but not living super large, not sure how much support you wanted to send home .
My husband had been seriously looking into prices in the Philippines and Thailand, overall it costs about the same or a bit less in Hu to live then over there, health insurance for ex-pats and other details made the low costs over there add up when one really looked into things.

Ask for your gross salary, then go to http://www.nettober.com/index.php?p=berkalk20170101 and enter your monthly gross into the first field, enter number of children into second, if any, and click Szamol.

Beware that lots of companies pay their employees at least partly in cash (i.e. without paying taxes after the whole sum, as required by law), this has advantages and disadvantages. If they don't tell you the exact gross salary, something's fishy.

Thank you! Will ask the company about the gross now.

Hello Atomheart, do all employees pay the same in terms of taxes? because being a foreigner you are not going to get necessarily retired there. Can you tell me how much a good managerial salary should be in Budapest in a multinational company? Thank you very much.

Being a foreign worker has zero to do with paying taxes in any country where you work.
They have their own tax rates and that's it.
My sister worked in the UK for 10 years, is 69 now and is not collecting a penny in benefits from the UK.
My husband worked and paid taxes in Hungary for 9 years from age 14 to 23, we live in Hungary now but he doesn't collect a penny from Hungary for those 9 years of working 6 days a week for 10 to 12 hours a day plus once a month doing a free day for his "comrades in Vietnam", it was required to give a free work day for the war effort without pay.
Not the countries problem if you want to work there and do not plan on staying in your old age.
In Hungary one has to work a min. of 15 years to collect the min. on SS after one reaches retirement age. A person can retire at any age after 40 years of work.

aviroga :

do all employees pay the same in terms of taxes? because being a foreigner you are not going to get necessarily retired there.

It entirely depends if there is any social security agreement between Hungary and your home country.

For example, the newly enforced US agreement with Hungary has a "Certificate of Coverage" clause, that if a US citizen working in Hungary applies for this exemption, they can avoid paying Hungarian retirement taxes if (1) they work in Hungary for 60 months or less, and (2) if they prove they are paying retirement taxes to the US government instead. There is also a Totalization clause, so time contributing in one country, counts as time in the other country if you move back.

Without any bilateral agreement between Hungary and your home country, then you typically need to pay all social taxes Hungary, including retirement taxes, and you loose your accrued time and money in Hungary if you do not work here for a period of at least 15 years.

Thanks, but in some countries there is a mixed system for social contributions, one is mandatory and everybody is subject to pay those taxes and there is another component that is personal account for retirement, those  that are PERSONAL, foreigners are not obliged to pay. They can decide if they will manage it on their own. Being a country where a lot of people from abroad come not for lifelong stays, I thought there could be a way to consider these situations. But is very clear for me now, that is not the case. THank you very much for you info.

Just enjoy your life ATM and do not focus everything towards old age.
Many people work hard and never collect a cent on retirement, they check out before then from stress or whatever.
If we had done everything we "should have done" as younger people, we would be living in a mansion in Bel Air , not a walk up in Budapest.
No worries.
Just live the life you can be proud of no matter how much money you get in the end. Who wants to die knowing they messed over others for their own gain, a clean slate is the best way to live.

Marilyn Tassy :

.....
In Hungary one has to work a min. of 15 years to collect the min. on SS after one reaches retirement age. A person can retire at any age after 40 years of work.

I think you can pay in HU an amount voluntarily to bring you up to the minimum.  Mrs Fluffy pays it as I've seen the yellow cheques - she fills them in every so often and makes lump payments. I've forgotten how much it is but I think it's something like 7500 HUF/month.  Maybe your Hubby can do that to bring him over the 15 years threshold.

Even in my own country (UK), you can pay in a class of contributions up to 7 years back to get more entitlement to pensions.  Pension in the UK is about £120 a month.  35 years to qualify for the maximum.   But the system there is changing. Retirement age will be a whopping 66.

Whether it is worth paying in to these things or not is another matter!

fluffy2560 :

I think you can pay in HU an amount voluntarily to bring you up to the minimum. .... Maybe your Hubby can do that to bring him over the 15 years threshold.

Well..... maybe not a good idea. The US Social Security office may then lower his payments if they are above the minimum to compensate for retirement income from other government systems. Yeah, they have been known to do that in the USA.

fluffy2560 :

But the system there is changing. Retirement age will be a whopping 66.

Full benefit retirement age in the USA is now 67. Yes, you can retire at 62, but you then take a 30% pay cut in your social security benefits.  :(

Of course, if you invested well, who cares! Retire at 35. ;)

klsallee :

..... Yeah, they have been known to do that in the USA.
...
Of course, if you invested well, who cares! Retire at 35. ;)

35? Mark Zuckerberg (Facebook) perhaps?

It's generally the problem with government.  The a*****es change the rules as they screw up the handling of the pension system.  In the UK, we had different retirement ages for men and women but various legal challenges had forced them into making them the same age but instead of lowering the men's age, they raise the women's age.  Then they have been creeping it up to 66.  I expect it will reach 70 within another say 20 years.    It's a target I'm chasing but in reality I doubt I will ever be able to retire as my own pension fund is hardly worth a damn.  One of my colleagues is almost 75 and he's still working.  I can see myself doing that as well.  Personally I think it's far too old to be working efficiently.

One of my relatives doesn't trust the government at all and have invested on their own behalf and has done a lot better than the government in terms of return.  Mainly through investing in property.  But then it's property inflation madness in the UK

Yes we actually went into the SS office here in Budapest and my husband collected info, this was a couple years back and rules do always change.
He was told he could pay a lump sum into the system to collect the min.SS here, he "owes" them 6 years.
Not worth it, forgot the amount but the min of only 15 years was so low it was a joke, guess not so funny though for those seniors who only live on that income alone.
I took the "early out" at age 62 this last Dec. My husband also took the early out at 62 7 years ago.
We figured there was no guarantee that we would be around at ages 65, 66 or however far "they "push up the official retirement age.
The biggest rip is that once a person finally  collects on their hard work from their youth, most don't really have the energy or drive to travel, go rollerblading, skiing or dancing the night away like they planned on doing once they retired. At age 59 or so here in HU my husband signed up for hang gliding classes, on his second lesson the teacher had him ready to go but the wind picked up and off he went without really having any know how or control, he landed right smack in the middle of a rose bush, last lesson for him.
In my family age 67 was the limit, most checked out in their 40's.
Only had one relation, my grandfather who lived to be nearly 95, his secret to life was to not work at all. He was from the generation where the US gov. actually took care of their military vets. He had a little space in the VA hospital where he moved to on and off at age 50.
He had a great time there too in Conn.Had dates with all his nurses over the years,had family bring him his daily whiskey and cigar and he wrote for the VA newspaper to keep his mind sharp.
All his needs were taken care of, his secret was only rye bread with sauerkraut a 5th of whiskey and one cigar a day, no sweets or snacks between meals and of course no hard work.

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