Debtors may have more money in their pockets after the wage garnishment starting in July

The amendment to the enforcement law of July 1. 2025 leaves more money at debtors, as it increased the non-deductible portion of income and removed family tax allowance from garnishment, except of child support and childbirth-related expenses.

A part of the income exempts from garnishment

From now on, in both full-time and part-time employment, 60% of the net amount of the current minimum wage will be exempt from garnishment, which amounts to HUF 116,029 net this year. This rule already had to be applied to the June wages paid in July.

Protection of the net amount of the family tax relief

In cases initiated after July 1. 2025, the net amount of family tax allowance cannot be garnished.

When determining the basis of the garnishment, the amount arising due to the family tax and contribution allowance in the debtor’s net salary that may not be used to repay the debt, it may not be garnished. However, in cases that began before July 1. 2025, the net amount of the family allowance may be garnished in the future too. In other words, depending on when enforcement began, payments to employees entitled to the same level of family tax relief must be treated differently. The exemption from garnishment applies only to family allowances, not to other allowances.

Although the rule remains in force that if the amount payable to the debtor exceeds HUF 200,000 after the garnishment, the amount above this limit may be enforced without restriction. Above this amount, even family tax allowances are no longer exempt from the suspension.

So even if someone has three children and would be entitled to a family allowance of HUF 99,000, if enforcement began before July 1. 2025, only the mandatory exemption (HUF 116,029) can remain as salary.

For employees hired after July 1, 2025, it must be clarified whether the enforcement proceedings began before or after July 1. 2025.

Are you unsure about wage garnishments? Are your colleagues struggling with other complex payroll issues? LeitnerLeitner’s payroll team can help you navigate even the most unusual situations.