Hungary

Hungary

Global Employment Solutions & PEO/EOR in Hungary

Omnipresent makes it fast and easy to employ remote talent in Hungary. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Budapest
Currency
Forint (Ft)
Native Language
Hungarian
Payroll Frequency
Monthly
Employee Protections
Strict
Employment Costs
High
Termination
Easy
Immigration
Difficult
Cost of Living
Moderate
Population
9.7 Million

What You Need to Know About Employing in Hungary


Don’t risk non-compliance with local employment, social insurance, and tax regulations. PEOs/EORs take on the burden of compliance for you.


How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Hungary

How Do Omnipresent Global Employment Solutions Work?


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. 

  • Your company conducts the hiring and candidate selection process in Hungary.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Hungary.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Hungary.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Partnering with a Professional Employer Organization (PEO), or Employer of Record (EOR), is often more effective, faster and less risky.

Curious to learn more?
Book a Call

Payroll & Taxes in Hungary


Employee Income Taxes:

15% - Flat Rate on taxable gross income


Hungary

Employer Costs in Hungary


Employer Contributions:

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.

Employee Contributions:

15% - Income tax
18.5% - Social security contributions

Hungary

Working Hours in Hungary


Standard Working Hours per Week:

The standard work week in Hungary is 8 hours a day, 5 days a week.

  • Maximum working hours are 12 hours a day, to a total of 48 hours a week in overtime. 
  • Minimum 2 rest days per week, 1 must be a Sunday with limited exemptions.

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!

Overtime Laws:

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.


Hungary

Public Holidays & Vacation Time in Hungary


Standard Public Holidays in Hungary

  • New Year’s Day
  • Revolution Day
  • Easter Monday
  • Labor Day
  • Whit Monday
  • Saint Stephen’s Day
  • Republic Day
  • All Saints’ Day
  • Christmas Day
  • Second Day of Christmas

Vacation Time in Hungary

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 a minimum of 14 consecutive days off a year.

Hungary

Types of Leave in Hungary


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. 


Sick Leave:

Hungarian law allows for 15 days sick leave per year at 70% of salary paid by the employer. 

Maternity Leave:

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.

Paternity Leave:

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.

Parental Leave

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.

Other Types of Leave:

Employees are exempt from work in certain circumstances in Hungary for example during:

  • Mandatory medical examinations
  • Donating blood
  • Upon the death of a relative
  • Mandatory court proceedings
  • Personal or family reasons 

Hungary

Health Insurance & Supplementary Benefits in Hungary


Hungary provides full medical coverage to all, with payroll contributions as one source of funding. State pension is available and divided into two parts.


  1. Compulsory social insurance
  2. Voluntary private pension


Omnipresent allows your employees to access top of the range benefit packages, irrespective of where they are based. We can offer tailored benefits packages on demand, country by country. Please contact us for further details.


Hungary

Termination & Severance in Hungary

 

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

Severance:

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.

Notice of Termination:

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:

  • + 5 days after 3 years of employment
  • + 15 days after 5 years of employment
  • + 20 days after 8 years of employment
  • + 25 days after 10 years of employment
  • + 30 days after 15 years of employment
  • + 40 days after 18 years of employment
  • + 60 days after 20 years of employme

Unprotected & Protected Termination:

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.

Hungary

Grow your global team. Employ the best talent, anywhere in the world.


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.

Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

Curious to learn more?
Book a Call