Hire and pay employees in
Hungary, hassle-free

The employer cost is generally estimated at 13.0% of the employee salary*

• Social Security - 13.0%
• Additional Employer Cost - HUF 15,700

One-Off Costs
Onboarding Medical Exam - HUF 17,800

Additional Costs
Local Municipal Tax
Hungarian municipalities may levy a local business tax on corporate taxpayers, up to a maximum tax rate of 2%. An innovation tax at a rate of 0.3% may also be applied. These taxes are generally levied on the turnover of the company, including salaries and other employment costs of the EORs located in Hungary. The Local Municipal Tax is invoiced twice a year, in March and in September. 

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.  

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 4 hours of overtime daily and 8 hours of overtime weekly. 

For additional hours, employees are paid an additional salary supplement of 50% on weekdays, and 100% on holidays and weekends. 

For holidays and weekends, employees will receive a salary supplement of 50% if they are compensated with a weekly rest day.

Fathers are entitled to 10 working days of paid paternity leave which must be used within the first 4 months after the date of birth. The first 5 days are paid by the employer at 100% of the employee’s regular salary, and the employer can file for a refund from the National Treasury. The remaining 5 days are paid by the employer at 40% of the employee’s regular salary, and the employer cannot file for a refund from the National Treasury.

The employee cannot extend leave.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Hungary can be complex. There is no at-will termination in Hungary for employers after the probation period, and termination must be done based on a justified reason.

Types of terminations:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer (with notice or immediate effect)

The minimum notice period is 30 days and will be increased according to the length of the employment:

• Up to 2 years of employment - 30 days of notice
• 3 years of employment - 35 days of notice
• 5 years of employment - 50 days of notice
• 10 years of employment - 55 days of notice
• 15 years of employment - 60 days of notice
• 18 years of employment - 70 days of notice
• 20 years of employment - 90 days of notice

By mutual agreement of both the parties, the notice period may be extended by up to 6 months.

In Hungary, severance pay is determined by the length of employment:

• 3 years of employment - 1 month of salary
• 5 years of employment - 2 months of salary
• 10 years of employment - 3 months of salary
• 15 years of employment - 4 months of salary
• 20 years of employment - 5 months of salary
• 25 years of employment - 6 months of salary

If employment is terminated by the employer when there are less than 5 years left until the employee becomes entitled to an old age pension, severance pay is higher:

• 3 years of employment - 2 months of salary
• 5 years of employment - 3 months of salary
• 10 years of employment - 5 months of salary
• 15 years of employment - 6 months of salary
• 20 years of employment - 8 months of salary
• 25 years of employment - 9 months of salary

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Hungary celebrates around 12 national holidays. National public holidays include:

• New Year’s Day
• Memorial Day
• Easter Friday
• Easter Sunday
• Easter Monday
• Labor Day
• Pentecost Monday
• State Foundation Day
• Revolution Memorial Day
• All Saints’ Day
• Christmas Day
• 2nd Day of Christmas

Onboarding takes 3 business days* after the client signs the SOW. A medical check is required and must be completed before the start date; otherwise, the start date may be delayed.

*may vary depending on the completion of the medical check and the provision of all mandatory compliance documents.

Contracts must be in Hungarian and can be bilingual. They must be in writing and signed by both parties.

The contract must include:

• Employer data
• Employee data
• Base salary
• Job position
• Length of the employment contract (if this is not there then it will be unlimited)
• Place of employment
• Probation period