The operation of cooperatives in Hungary is regulated by Act X of 2006. The law on cooperatives requires all members of cooperatives to pay a certain amount of monetary contributions. This is usually a symbolic amount, between HUF 100 and 1000, which is returned at the end of the legal relationship. There is no further payment obligation.
The maternity cooperative discounts and facilities are available from 1 July 2021. People in receipt of childcare allowance (GYED) or childcare allowance (GYES) who have a young child at home (both mother and father) can work in a co-operative for people with young children under favourable conditions. To work through the maternity cooperative, one must be a member of the maternity cooperative. The maternity cooperative enters into a contract with the employer, which is the only way to benefit from the favourable tax treatment. Membership of the co-operative ends automatically when the entitlement to GYED or GYES ceases. The work carried out in the framework of a maternity cooperative does not constitute an employment relationship (neither a civil servant nor a public employee), so it does not affect a break in employment. If one works through a maternity cooperative, only 15% personal income tax is deducted from one’s salary. In a normal employment relationship, in addition to the 15% personal income tax, 18.5% social security contributions are deducted from the salary, for a total of 33.5%.
The pensioners’ cooperative is a company that offers retired workers the opportunity to apply for benefits and is also a recruitment agency. A significant advantage for employers is that, thanks to the benefits available to pensioner cooperatives, members’ wages are exempt from contributions. The fact that no wages are paid during holidays and sick leave, only the actual number of hours worked on the job need be taken into account, and the employer is exempt from paying rehabilitation contributions, means direct cost savings. This is a significant administrative relief, as there is no need for advertising, interviews and administrative tasks related to the recruitment, payroll and payment are not the responsibility of the client, the total service fee is entered in the accounts as one cost account. Under a transfer of responsibility, the employer is contractually linked to a cooperative with legal personality, not to an individual meaning no notice period, no severance pay. It can also be used at any time, seasonally, on a campaign basis, continuously, all year round. The pensioner must have a valid old-age pension certificate to prove his/her status. There is a choice of several options for retired work with appropriate qualifications and experience. For a cooperative, at least 90% of the members must be in receipt of a retirement pension. In addition to old-age pensioners, this category also includes women in receipt of preferential retirement. The favourable tax and contribution rules apply only to retired members.
The school cooperatives tend to specialise in qualifications, with some specialising in IT, support, development, testing, technical, business (finance, accounting, marketing, sales) and administrative student jobs, but also traditional, unskilled or casual (e.g. hostess, summer jobs, etc.), project-based and work-from-home student jobs. Their role is twofold: to provide students with work experience and a source of income, and to provide employers with human resources and supply. For students, there are clear benefits of membership of a cooperative: work experience, work that can be done as an apprenticeship, a salary commensurate with their skills, flexible working hours and good working conditions.