Hire employees in Hungary No entity needed.
Usually, to hire in Hungary, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Hungary also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Hungary quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Hungary built right in
Deel allows you to provide localized benefits for employees in Hungary within minutes. All in one manageable online dashboard.
- Professional Training
Currency: Hungarian forint (HUF)
Official language: Hungarian
Payroll Cycle: Monthly
Paid Time Off
Statutory paid holiday entitlement is set at a minimum of 20 days a year. For employees over 45 year, the paid time off will increase up to 30 days per year.
In Hungary there are 11 public holidays.
- New Year’s day
- Revolution Day
- Good Friday
- Easter Monday
- Labor Day
- Whit Monday
- May Day Holiday
- Whit Sunday
- St Stephen's Day
- Republic Day
- All Hallow's Day
- Christmas Day
- Boxing Day
Individual Income Tax
The Individual tax rate range in Hungary is 18.5%.
Approximately, 17% of employee salary.
Employee agreement can be bilingual. All requirements of the agreement must be in writing.
The maximum probation period is 3 months.
Minimum Wage Requirements
The Minimum Wage is HUF 167,400 per month and for job positions with higher education HUF 219,000 per month.
Maximum working hours and overtime
Normal working hours over a five-day period must not exceed 40 hours a week, 8 daily.
Employees are entitled to unpaid leave for the purpose of taking care of the child, from the end of the maternity leave until the child reaches the age of three. Either parent is entitled to take the leave, but only one parent may take the leave at any time. During parental leave the employee may receive a social security benefit.
- Maternity Leave: employees are entitled to 24 weeks of maternity leave and unless otherwise agreed, the leave is to commence 4 weeks prior to the expected date of birth. During the 24 weeks of maternity leave, workers are entitled to receive child-care benefits for 168 days if all the conditions are met. Employees wil receive 70% of their salary from the Social Security System.
- Paternity Leave: employees are entitled to five days of paid leave that must be taken within two months of the child’s birth on the days chosen by the employee, reimbursed by the State upon employer’s request. Is common practice to extend paternity leave up to 15 days paid by the employer.
In Hungary, employees are entitled to 15 days of sick leave per year. During this time they will receive 70% percent of their salary. This cost is covered by the employer. Starting the 16th day of sick leave in calendar year, the Social Security System of Hungary will take care of this payment. However, the employer will still have to pay 30% of the salary.
Termination requirements for employees in
There are two types of dismissals:
- Regular dismissal: in case of redundancy, incompetence, or misconduct. The employee is entitled to severance pay. Those who served between one year and 10 years, the employee receives 1/5 of the average salary from the previous three months for every year served. For those who served more than 10 years, severance is ¼; over 20 years gets 1/3.
- Extraordinary: when an employee commits a crime, fails to show up for work, presents false data, declines a transfer, and other serious breaches. The termination must be delivered in writing and express the reason for the termination and must be delivered in person.
In both cases, the employer must inform the employee in writing and provide an opportunity for the employee to present a defense.
In Hungary, the notice period is based on the length of the labor relationship:
- Up to 1 year of employment - 2 weeks’ notice
- 1 - 2 years of employment - 1 month’s notice
- 2+ years of employment - 1 month’s notice plus two days for every year served above two.
Employees may be entitled to a severance payment if their employment is terminated on notice by the employer for operational reasons. The minimum amount is 1 month's pay and a maximum of 6 months', depending on length of service.
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