Hire employees in

Hungary, hassle-free

Hire employees in Hungary, hassle-free

With Deel, your business can easily hire employees in Hungary. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Hungary is 4 days with Deel.

Download the Guide

Currency

Hungarian forint (HUF)

Capital

Budapest

Official Language

Hungarian

Payroll Cycle

Monthly

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.

  • Public Health Insurance
  • Private Healthcare - Unisure (optional)

Our quickstart guide to hiring in Hungary

Navigate the tabs below to learn everything you need to know about hiring an employee in Hungary

Minimum Wage Requirements

The minimum wage is HUF 200,000 per month.  

Individual Income Tax

The individual income tax in Hungary is 15%. Income tax is calculated using a flat rate. 

Employer Cost

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

  • Social Contribution Tax - 13.0%

Overtime Pay & Maximum Hours

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.

Maternity Leave

Pregnant employees who have worked for 365 calendar days in the last 2 years are entitled to 24 weeks of paid leave. Four weeks must be taken before the birth of the child. 

The employee will generally receive 100% of the monthly average salary of the 2 year period prior to childbirth, and the National Treasury will be responsible for this pay. 

The employee cannot extend leave.

Paternity Leave

Employees who have worked for 365 days in the last 2 years are entitled to 5 days of paid leave. The employee will be paid by the employer as PTO. The employer can file for a refund with the National Treasury.

The employee cannot extend leave.

Parental Leave

In Hungary, there are no laws covering parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Employees are entitled to paid sick leave for up to 15 days per year (prorated for mid-year hires). This leave is paid at different rates and by different payers depending upon length: 

While the National Treasury pays for sick leave after 15 days, the employer still has to compensate the National Treasury 30% of this sick leave pay. If sick leave is due to high-risk pregnancy, a work related accident or illness (including COVID 19), the National Treasury will pay from the first day of leave.

Termination Requirements

Terminations in Hungary can be complex. There is no at-will termination in Hungary for employers, outside the probation period, and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Objective grounds
    • Disciplinary dismissal
    • Performance due to unsuitability for the job

Notice Period

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.

Severance for Employees

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

Paid Time Off

Both full-time and part-time employees are entitled to a minimum of 20 days of paid time off (PTO) a year. The PTO entitlement increases depending on the age of the employee: 

PTO accrues per day of employment and is prorated based on their annual PTO entitlement.

Public Holidays

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

  1. New Year’s Day
  2. Memorial Day
  3. Easter Friday
  4. Easter Monday
  5. Labor Day
  6. Pentecost Monday
  7. State Foundation Day
  8. Revolution Memorial Day
  9. All Saints’ Day
  10. Christmas Eve
  11. Christmas Day
  12. 2nd Day of Christmas

Onboarding

5 business days after MSA signature & deposit payment.

Employment Contract Details

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

Probation Period

Probation periods are not mandatory. There is no minimum probation period. The maximum probation period is 90 days (3 months). 

There is no notice period required during probation.
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Download the complete guide to hiring in Hungary

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Hiring in Hungary, hassle-free

With Deel, your business can easily hire employees in Hungary. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

13%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Hungary?

View our Employee Cost Calculator

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