Don’t risk non-compliance with local employment, social insurance, and tax regulations. PEOs/EORs take on the burden of compliance for you.
Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Hungary. Traditional methods of establishing global employment and subsidiaries in Hungary typically takes months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services are helping hundreds of organisations onboard new employees in Hungary in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.
Partnering with a Professional Employer Organization (PEO), or Employer of Record (EOR), is often more effective, faster and less risky.
15% - Flat Rate on taxable gross income
15.5% - Social Contribution Tax (changed from 17.5% as of June 2020)
1.5% - Training Fund
Employers with 25 or more employees must pay a yearly “rehabilitation tax” unless at least 5% of their staff consists of disabled persons.
In practice, this means that the employer is to pay an amount of cc. €4,000 multiplied by a multiplier. The multiplier is the number of 5% of the employees less the number of the employed disabled employees.
15% - Income tax
18.5% - Social security contributions
The standard work week in Hungary is 8 hours a day, 5 days a week.
It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!
The maximum amount of overtime allowed in Hungary is 250 hours per year (or up to 300 if specified in the CBA). Hungarian law allows the employer and the employee to negotiate terms in regard to overtime. For example, they may agree that the employee voluntarily undertakes on a yearly basis 150 hours additional overtime. Overtime laws are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.
Employees in Hungary are entitled to at least 20 days off per year.
The amount increases based on the age of the employee as follows:
• Up to 25 years old: 20 days
• 25-27 years old: 21 days
• 28-30 years old: 22 days
• 31, 33, 35, 37, 39, 41, 43: Extra 1 day every 2 years
• 45 years old and up: 30 days
The employee must be able to have total control over the timing of at least 7 days and must have the option to take a minimum of 14 consecutive days off a year. It is not mandatory for an employee to take 14 consecutive days off if they do not want to.
Every country has different statutory rules on leave, entitlement and the carrying over of unused leave. It is important to understand these differences to stay compliant.
Hungarian law allows for 15 days sick leave per year at 70% of salary paid by the employer.
Maternity leave in Hungary accounts for 24 weeks leave paid at 70% of gross average salary. This leave can start 4 weeks prior to the due date. During the first 6 months of the child's life, the employee is entitled to 2 hours of work time per day for nursing and 1 hour after that until the child reaches 9 months.
The father is entitled to 5 days off for paternity leave which the employer must allocate within 2 months following the date of birth. The father is also entitled to take unpaid leave until the child reaches 3 years of age.
Additional parental leave is available in Hungary as an option up until the child is 2 years of age. It can be taken by either parent and is paid at 70% of salary but it is capped at twice minimum wage. One parent is also entitled to extra annual paid time off depending on the number of children.
Employees are exempt from work in certain circumstances in Hungary for example during:
Hungary provides full medical coverage to all, with payroll contributions as one source of funding. State pension is available and divided into two parts.
Details about international or country specific benefit packages can be provided on request. Please contact us for further details.
There are a range of reasons that an employer can use to terminate an employee, which depend on the specific circumstances and can be very complex. If you would like to know more specific details, please contact us.
The amount of severance pay is typically 1-6 months absence fee depending on the length of the employment served. Employees close to pension age are typically entitled to an additional 1-3 months absence fee depending on the length of the employment served. Every situation is unique, so please contact us with any questions.
The minimum notice of termination in Hungary is 30 days notice with a maximum notice period of 6 months. The 30-day notice period must be extended based on years of service:
Hungarian law protects employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in Hungary to reach out to us directly with questions.
Protected Classes of Employees:
Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination are highly complex and there can be a number of situation-specific variables.
The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Hungary are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. Our global PEO/EOR solutions are here to help you every step of the way.
Join thousands of companies who are leading the way and employing remote teams all over the world.
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