From 2027, the government will abolish the salary cap on service allowances, and from 2028, no personal income tax will need to be paid on it.

Starting in 2027, the government will abolish the salary cap on service allowances, and from 2028, no personal income tax will be levied on these benefits. This announcement was made by Defense Minister Romulusz Ruszin-Szendi and Interior Minister Gábor Pósfai on Facebook. Service allowances are granted to individuals who previously worked in law enforcement or military service. The previous government restructured the system in 2012, replacing service pensions with service allowances, which were subject to a 15% income tax and a salary cap. The ministers announced the removal of both the tax and the salary cap.