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Europe

Hungary

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Employer of Record (EOR) in Hungary

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Hungary Introduction

Hungary is a landlocked country in central Europe, bordered by Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia, and Austria. It has a high-income economy and high human development index, where citizens enjoy universal health care and tuition-free education. Hungary has an export-oriented economy with significant achievements in science and technology.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 24 weeks of maternity leave paid at 70% of the salary, and fathers can receive 5 days of paid paternity leave within 2 months of the birth. Mothers can also take up to 2 years of leave while receiving maternity benefits from social security. This additional leave can be taken by either parent and is paid at 70% of the salary (capped at 2x the minimum wage). There is also a Child Home Care Allowance benefit available to parents and grandparents caring for children under the age of 3.

Sick Leave

Employees in Hungary can receive 15 days of paid sick leave each year, which is paid by the employer at 70% of the salary. If the sick leave continues past the 15th day, the employee can continue to take time off up to 1 year (with the payment shared between the employer and Social Security).

Paid Leave

There are 11 public holidays, but it’s customary to grant some additional days for long weekends. Employees in Hungary are also entitled to 20 days of paid time off each year (which can increase according to the employee’s age up to 30 days for employees who are 45+). Employees with children can also take a few extra days off each year depending on the number of children.

Wage Requirements and Working Hours

The minimum wage in Hungary is HUF 200,000 per month, with a standard workweek of 40 hours at 8 hours a day. Overtime is regulated by contracts/collective agreements paid ay 150%-200% of the regular salary.

Termination Process

Process

Employers can terminate a contract for reasons related to business, personal, or misconduct. A written notice and explanation for the termination is required and must be factual and clearly stated. Employers cannot terminate contracts while employees are on parental leave, military service, or other cases protected by Hungarian law.

Notice Period

The typical notice period is 30 days, however if the contract is terminated by the employer, the notice period is extended based on how long the employee worked at the company:

  • 3-5 years = +5 days of notice
  • 5-8 years = +15 days of notice
  • 8-10 years = +20 days of notice
  • 10-15 years = +25 days of notice
  • 15-18 years = +30 days of notice
  • 18-20 years = +40 days of notice
  • 20+ years = +60 days of notice

Severance Pay

If the employer terminates the contract for operational reasons, the employee is entitled to severance pay. The amount ranges from 1 month of salary to 9 months of salary depending on how long the employee has worked at the company.

Additional Information

N/A

OVERVIEW
Language(s):
Hungarian
Currency:
Hungarian Forint (HUF)
Capital City:
Budapest
Population:
9.6 Million
Cost of Living Rank:
94th
VAT (Valued Added Tax):
27%
Employer TaxES
13%
(estimated)

★  13% - Social Security

Simplified Global HR and Payroll.
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We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

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How Remofirst employs in Hungary

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Hungary get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Hungary are paid on time in Hungarian Forint (HUF). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Hungary, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.