Employer of Record (EOR) in Hungary
Expand your business in Hungary without the need for a local entity. Native Teams handles all legal, tax, and payroll responsibilities, allowing you to hire and manage employees seamlessly. Native Teams offers quick and compliant onboarding, full payroll and tax management and statutory benefits administration.
How does an EOR in Hungary work?
Using an Employer of Record in Hungary simplifies the hiring process for companies looking to expand without establishing a local business entity. When you partner with Native Teams, you recruit and manage your team as usual, while we act as the legal employer. We also handle employment contracts, ensuring compliance with Hungarian labour laws.
While all the employees are registered with Hungarian Social Security, we manage payroll taxes and income tax withholding. We also administer statutory benefits, including healthcare, pensions, and paid leave. All HR documentation is centralised in the Native Teams platform for easy access.
With our EOR services, you can focus on growing your business while we take care of compliance and administrative tasks.
Who can use EOR services in Hungary?
EOR services in Hungary are available for both businesses and individuals looking to hire or work compliantly without the need for a local entity. They offer a simple and efficient way to manage employment, payroll, and compliance while focusing on growth and operations.
Features of Native Teams EOR services in Hungary
Employment status
With Native Teams, businesses can compliantly hire employees in Hungary without a local entity, while freelancers can obtain employment status for tax and benefits purposes.
HR administration and documentation
We automate HR tasks and provide all necessary employment documents. Employers and employees can access contracts, payslips, and compliance documents in one centralised platform.
Global payroll
Our payroll calculator streamlines salary calculations, tax deductions, and benefits administration, ensuring accurate payroll management across multiple countries.
Benefits
Employees and freelancers can receive statutory benefits, including healthcare, pension contributions, and additional perks such as wellness programs.
Dive deeper into Hungary’s labour laws and regulations with our hiring guide.
What legal requirements exist for employment in Hungary?
Employment contracts
In Hungary, all employees must have a written employment contract that clearly defines the terms and conditions of their employment. This includes essential details such as job responsibilities, salary, working hours, probation period, and any additional benefits. Contracts must comply with Hungarian labour laws and be signed by both the employer and employee before work commences. Any amendments to the contract must be mutually agreed upon and documented in writing.
Social security registration
Employers in Hungary are required to register their employees with the Hungarian social security system (Társadalombiztosítás). This ensures that employees have access to essential social security benefits, including healthcare, pensions, unemployment insurance, and disability coverage. Employers must also make mandatory contributions on behalf of their employees, which are calculated as a percentage of the employee’s salary. Registration must be completed before the employee’s first working day to ensure compliance.
Payroll & tax compliance
Employers are responsible for accurately calculating, withholding, and remitting payroll taxes on behalf of their employees. This includes income tax, social security contributions, and any other statutory deductions required by Hungarian law. Payroll must be processed in accordance with local tax regulations, and all contributions must be submitted to the relevant tax authorities within the required deadlines. Employers must also provide employees with payslips detailing salary breakdowns, tax deductions, and net pay.
Statutory benefits
Employees in Hungary are legally entitled to a range of statutory benefits designed to protect their well-being and financial security. These benefits include paid annual leave (typically 20 working days, increasing based on age), sick leave, maternity and paternity leave, and other family-related benefits. Employers must ensure that these entitlements are granted in accordance with labour laws and properly documented. Additionally, employees may be eligible for other state-provided benefits, such as childcare support and unemployment allowances.
Termination procedures
Terminating an employee in Hungary must be done in compliance with labour laws to avoid legal disputes or financial penalties. Employers must provide proper notice periods, which vary depending on the length of employment and the terms of the contract. In some cases, severance pay may be required, particularly if the termination is due to redundancy or restructuring. Additionally, employers must document the termination process, ensuring all legal obligations, including final salary payments and benefits settlements, are fulfilled.
Please note that these requirements may vary based on the job type, employer, and individual circumstances.
Why choose Native Teams as your Hungary Employer of Record?
Navigating Hungary’s employment laws and tax system can be complex. Native Teams ensures full compliance with all legal requirements, helping you not only hire quickly and legally without opening a company in Hungary but also ensure tax and payroll compliance, avoiding costly penalties.
Native Teams also provide statutory benefits such as healthcare and pensions to employees. You can streamline HR processes with automated documentation and payroll management with Native Teams EOR services in Hungary. With Native Teams, you get expert support and a seamless employment solution, allowing you to expand into Hungary confidently.
``What is an Employer of Record?
An Employer of Record (EOR) is a service provider that legally employs workers on behalf of a company. While the company retains control over work assignments and management, the EOR handles legal employment responsibilities, including contracts, payroll, and compliance with local labour laws.
What are the costs of using an Employer of Record in Hungary?
EOR pricing depends on factors such as the number of employees and specific services required. Costs typically include: Payroll processing and tax administration fees, social security contributions and statutory benefits and HR management and compliance services.
Native Teams has one of the most affordable and transparent pricing structures for your global work needs. The Employer of Record plan starts at €99 per month per employee, and the Work Payments plan starts at €19. Both plans cover all the essential tools and features needed for legal employment.
What is the difference between PEO and EOR?
A Professional Employer Organisation (PEO) provides HR and payroll support under a co-employment model, meaning the company and the PEO share employer responsibilities. However, the company must still establish a legal entity in Hungary.
An Employer of Record (EOR), on the other hand, acts as the full legal employer, handling compliance, payroll, and HR tasks, eliminating the need for a local entity. This makes EOR services ideal for businesses looking to hire in Hungary without setting up a company.
What are the responsibilities of an Employer of Record (EOR)?
An Employer of Record (EOR) service provider acts as the official employer for your workforce, ensuring full compliance with local laws and regulations. Their responsibilities include payroll processing, which involves calculating and distributing salaries, taxes, and deductions. They also manage compliance to ensure all employment practices align with local labour laws and handle the drafting of legally compliant employment contracts tailored to specific regulations.
Additionally, an EOR oversees benefits administration, managing both mandatory and optional employee benefits. They facilitate the onboarding and offboarding processes, ensuring proper documentation for employee entry and exit. Moreover, they play a crucial role in risk mitigation by assuming liability for employment-related issues, thereby reducing risks for the client company. By handling these tasks, an EOR enables businesses to focus on managing their workforce and core operations.
Is using an Employer of Record in Hungary legal?
Yes, using an EOR is fully legal in Hungary. The arrangement ensures compliance with Hungarian labour laws while allowing companies to hire employees without establishing a local entity. Native Teams operates within legal frameworks to provide compliant employment solutions.
Why should I use an EOR instead of opening my own company or office in Hungary?
Opening a company in Hungary requires setting up a legal entity, registering for tax purposes, and maintaining ongoing compliance with local employment laws, which can be both costly and time-consuming. Using an Employer of Record (EOR) allows you to start hiring immediately without waiting for company registration, eliminating administrative burdens and compliance risks.
It also helps reduce costs associated with office setup and entity maintenance, enabling you to focus on business expansion without dealing with legal complexities. With Native Teams, you can enjoy all the benefits of local hiring without the hassle of establishing a company.
How many people can I employ in Hungary?
With Native Teams, there are no limits on the number of employees you can hire in Hungary. Whether you need to employ a single freelancer or build an entire team, our EOR services are scalable to match your needs.
Additionally, our platform allows you to manage employees across multiple countries, providing a seamless global employment solution.