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

• Social Contribution Tax - 13.0%

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.

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

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

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

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