Hungary
Min. wage
(x12 payments)
Ft322,800 /mo
About the minimum wage
Employer tax
Annual leave
20 days
Learn about annual leave
Notice period
30-90 days (by tenure)
Termination and notice info
Updated
Sep 2026
The default and most common form of employment in Hungary. It has no fixed end date and provides employees full protection under the Labour Code (Act I of 2012), including statutory notice periods, severance pay eligibility, and protection against unfair dismissal.
Fixed-term contracts must state a specific end date or objectively determinable event (e.g., project completion). Repeated renewal without a legitimate business justification can be deemed abusive and reclassified as indefinite. If an employer terminates a fixed-term contract early, the employee is entitled to absence pay for the remaining term, capped at 12 months.
Standard full-time schedule is 8 hours/day and 40 hours/week. Daily working time can be extended to up to 12 hours under certain working-time-banking or on-call arrangements. Overtime is generally capped at 250 hours/year (up to 400 hours if agreed with the employee), compensated with a wage premium or time off in lieu.
During the probationary period, either the employer or the employee may terminate the employment relationship immediately, without notice and without stating a reason.
Hungary has no statutory requirement for a 13th or 14th month salary. Some employers voluntarily pay a discretionary 13th-month bonus (often around Christmas) as part of company policy or a collective bargaining agreement; it is fully taxable as ordinary income if paid.
Hungarian labour law does not impose a standardized national job-title classification system for most roles. The employment contract must specify the employee's 'job function' (munkakör) and core duties under the Labour Code. However, certain regulated professions (e.g., physicians, attorneys, chartered accountants, engineers) require state-recognized qualifications and licensing to use the corresponding professional title.
Employers pay a flat 13% Social Contribution Tax (szocho, szociális hozzájárulási adó) on the employee's gross salary, which funds pension, healthcare, and labor-market systems. There is a monthly contribution base cap (approx. HUF 7.7 million in 2026). The separate Vocational Training Contribution was abolished and folded into SZOCHO back in 2022, so no additional employer-side training levy currently applies.
Employees contribute a combined 18.5% of gross salary, comprising: 10% pension contribution, 7% health insurance contribution (commonly split into ~4% in-cash and ~3% in-kind components), and 1.5% labor market (unemployment) contribution. These are withheld and remitted by the employer, on top of which a flat 15% personal income tax (SZJA) applies (with family tax allowances available for parents).
In addition to statutory leave, employees are entitled to the following statutory benefits:
Hungary's social security system is funded through a combination of a flat employer-side tax and employee-side contributions, both calculated on gross salary.
Hungary does not operate a separate private workers' compensation insurance system; work-related accidents and occupational illnesses are covered through the unified state social security and health insurance framework, funded by the employer's Social Contribution Tax and employee health insurance contributions.
Employees who suffer a workplace or commuting accident are entitled to enhanced sickness benefits (typically 90-100% of gross income, regardless of hospitalization) rather than the standard 50-60% táppénz rate, along with employer accident-reporting and workplace safety obligations under the Labour Code and occupational safety legislation.
Severance pay applies to employees with at least 3 years of continuous service at the same employer whose employment is terminated by the employer via ordinary notice, due to the employer's cessation without a legal successor, or via lawful employee resignation caused by employer misconduct.
Severance is increased further for employees terminated within 5 years of reaching retirement age. It is not payable for immediate dismissal due to serious misconduct, employee resignation without employer fault, fixed-term contract expiry, retirement, or mutually agreed terminations (unless otherwise agreed).
Hungary has no legal requirement for employers to pay a 13th (or 14th) month salary.
Where offered, a 13th-month bonus is a discretionary benefit set by company policy or collective bargaining agreement, typically paid around Christmas, and is subject to standard personal income tax and social contributions like regular salary.
P.S. our team speaks multiple languages and we'd love to chat in your preferred language if requested.
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), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. 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).
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.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.
