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Hungary

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Hungary
Everything you need to know about payroll, benefits & hiring top talent in Hungary

Currency

Hungarian Forint (HUF)

Salary payment frequency

Monthly

Capital

Budapest 

Time Zone

GMT +1:00

Official Languages

Hungarian

Is English spoken?

Yes
Get started - Hire in Hungary today
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Quick Links

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Introduction
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Employer Contributions
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Employee Contributions
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Employment Terms
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Introduction

General Overview & Economic Facts
  • Hungary (Magyarország) is country located in Central Europe
  • It spans  93,030 square kilometres (35,920 sq mi) and has a population of approximately 10 million
  • Hungary is regarded as a middle power in international affairs due to its economic and cultural influence
  • It is a developed country with a high-income economy, with citizens enjoying universal health care and free-tuition secondary education
  • Hungary is one of the most educated countries in the world, with a literacy rate over 99% and a strong educational system
  • Its economy ranks 55th by nominal GDP (2020) and 52nd by PPP (2020)
  • Hungary ranks 40th on the HDI (2019)
Why Employ In Hungary?
  • The main exports from Hungary are machinery agricultural products, chemicals, textiles, iron, steel, and wine
  • 10.43 % of the population is between the ages of 15 and 24 years, with 42.17% of the population being between the ages of 25 and 54. Hungary has a mix of a fairly youthful population, making it a favourable country to employ young, energetic employees, as well as a good country to hire more experienced employees
Overview Of The Labour Law
  • The Labour Code is the main source of employment law. There are a number of additional regulations, including those of European Union that are applicable. The Civil Code is also applicable to some employment agreements
  • The labour regulations cover minimum wage, working conditions, vacation and termination of employment
  • Written employment contracts must be used to commence employment relationships
  • Labor law in Hungary is based on the protection of both employers and employees
Fun Country Facts
  • The Hungarian alphabet has 44 letters
  • The Rubik’s cube was invented in Hungary
  • You can only name your child in Hungary after there is approval from the government
Why Use Playroll Services For Hungary?
  • Employing in Hungary requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Hungary.
  • With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
  • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
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Employer Contributions

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

Social Tax

Calculated on monthly earnings

13.00%

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Employee Contributions

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

Labour Market Contribution
Calculated on monthly earnings 

1.50%

Pension Fund
Calculated on monthly earnings 

10.00%

Health Insurance

Calculated on a minimum salary of HUF 8,000.00 per month

Sickness Insurance Contribution
4.00%

Monetary Health Insurance Contribution
3.00%

Income Tax

Income Tax is ‘Pay As You Earn’

15.00%

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Employment Terms

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General

Minimum Wage
  • Basic minimum wage- HUF 200,000.00 per hour
  • Employees with secondary level qualifications or vocational training- HUF 260,000.00 per hour
Working Hours
  • Maximum of 8 hours per day and 40 hours per week
  • Meal interval
    – Work time exceeds 6 hours- minimum 20-minute meal interval, maximum of 60 minutes
    – Work time exceeds 9 hours- minimum 45-minute meal interval
  • Typical working hours start at 09h00 and end at 17h00, Monday to Friday
Overtime
  • Employees may work a maximum of 4 overtime hours per day and 8 overtime hours per week
Notice Period
  • Employed between 0 and 3 years- 30 days’ notice
  • Employed between 3 and 5 years- 35 days’ notice
  • Employed between 5 and 8 years- 45 days’ notice
  • Employed between 8 and 10 years- 50 days’ notice
  • Employed between 10 and 15 years- 55 days’ notice
  • Employed between 15 and 18 years- 60 days’ notice
  • Employed between 18 and 20 years- 70 days’ notice
  • Employed for 20 years or more- 90 days’ notice
Severance Pay
  • Employed between 0 and 3 years- 1 months’ pay
  • Employed between 3 and 5 years- 2 months’ pay
  • Employed between 5 and 10 years- 3 months’ pay
  • Employed between 10 and 15 years- 4 months’ pay
  • Employed between 15 and 20 years- 5 months’ pay
  • Employed between 20 and 25 years- 6 months’ pay
Probation Period
  • There is no statutory probation period
  • It is common to have a probation period of 3 months
Bonus
  • There is no statutory bonus
Public Holidays

Public holidays 2022

  • January 1st – New Year’s Day
  • March 15th – Revolution Day
  • April 15th – Good Friday
  • April 18th – Easter Monday
  • May 1st – Labour Day
  • June 6th – Whit Monday 
  • August 20th – Saint Stephen’s Day
  • October 23rd – Republic Day
  • November 1st – All Saints’ Day
  • December 25th – Christmas Day
  • December 26th – 2nd Day of Christmas
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Leave

Paid Leave / Vacation Days
  • Paid by employer
  • Minimum of 20 days per year
  • The minimum annual vacation days increases with the employee’s age
Sick Leave
  • Paid leave
  • Paid by employer
  • Minimum of 15 days per year
Maternity Leave
  • Unpaid leave
  • 24 weeks per year
  • Employees are entitled to receive child-care benefits for 168 days from the social security system
Paternity Leave
  • Paid leave
  • Paid by employer
  • Salaries can be reimbursed by the state upon application
  • 5 days per year- 1 child
  • 7 days per year- more than 1 child
Parental Leave
  • Unpaid leave
  • Until the child reaches the age of 3 or until the child reaches the age of 10, during the period of receiving a child-care allowance
Family Responsibility Leave
  • Paid leave
  • Paid by employer
  • 2 days per year
Adoption Leave
  • Unpaid leave
  • 24 weeks per year
Long Term And Injury Leave
  • Unpaid leave
  • Maximum of 2 years
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