A government decree on the rules for granting tax-exempt employer housing assistance has been released, so that it can finally begin to take effect. What do you need to know about the new cafeteria item?
What is Employer Housing Support?
Employers now have the opportunity to take over part of their employee loans. This support provided as part of the cafeteria is completely tax-free. There is virtually no better alternative for the worker or the employer when it comes to wage supplements.
Example: To pay off a $ 20,000 loan, the employee needs a gross payout of $ 30,535, but it costs the employer $ 39,237 in total, due to different employer taxes. However, giving the same installment under the new subsidy will cost the employer only 20,000 HUF. So, in this example, we earn close to $ 20,000 compared to normal wages.
It’s not a new thing, my boss still pays for my credit
Until now, employer loans were exempt. From now on, the employer can also go into the repayment tranche of loans provided by the credit institution.
Do you think it’s worth asking for support instead of regular wages?
It is important that the wages of the beneficiaries are not reduced. In other words, the salary supplement can only be given in addition to the previous salary. The fulfillment of this condition is examined by the NAV.
Can I get support?
The grant is conditional on the employee having any ownership interest or usufruct in the property. So you can apply not only for loans, but even for those who have leases.
Your employer can only provide support to those who have what is called a “decent home”. That is, the size of their apartment is “appropriate”. They are fixed by room and number of movers. For example, a family of three may receive support for a 1.5 to 3.5 bedroom apartment.
If we bought a bigger home than the affordable one, we haven’t lost everything yet. Based on the children committed in the future, support may still be available. For example, can be proved by a statement of childbearing submitted to the socpol.
The conditions are checked by the employer or the bank and after submitting the certificates we do not have to do any more until we submit the declaration, in which we agree that the data may be sent to the bank.
Can I pay my full repayment?
Even so, if the following conditions are met. The amount of the grant may not exceed HUF 5 million in 5 years and the total amount of the grant may not exceed 30% of the purchase price or the construction cost.
For an apartment of 10 million, the employer can only pay the full installment if the amount of the remaining installments is no more than 3 million. In the case of higher value housing, the limit of 5 million every 5 years will prevail. Thus, those whose installments amount to more than HUF 5 million but less than 30 per cent of the value of the dwelling over a period of 5 years may receive a maximum subsidy of only HUF 5 million.
Who does my company pay for my repayment?
If all the conditions are met, the boss can transfer the money to the bank. To do this, the employee must provide the credit account number.
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