Hiring guide in Hungary

Have the latest guide for hiring in Hungary through Native Teams

What should I know about hiring in Hungary?

Hiring new employees from Hungary can help your business reach the next level, but there are a few important things to consider before you start hiring talent from this Eastern European country.

First, you should know that Hungarian employment is legislated by different national and international laws and regulations, similar to other countries from the European Union.

A written employment contract must be used for both employees and employers in order to commence an employment relationship. These contracts must include details such as the name of the position, salary, location of work and working hours.

With the rise of remote work, employers have to ensure their employment contracts will be compliant with Hungarian legislation.

Why is Hungary a good choice for finding remote employees?

Hungary is a country with outstanding tech talent, diverse opportunities for start-ups and a welcoming business environment.

Looking at the global picture, we can see that individuals and companies are swiftly adopting the concept of working remotely, particularly in the digital and technology industries.

Moreover, Hungary is also one of the most educated countries. They pride themselves on a robust educational system and a literacy rate of over 99%, so it can be a great choice for finding post-graduate talent with a high level of English proficiency.

When it comes to wages, the average wage in Hungary is approximately 60% less than the average in other countries of the European Union. With a solid level of technical education and English proficiency, hiring Hungarian employees, therefore, comes with a great price-quality match.

How can Native Teams help you hire in Hungary

If you want to start hiring people from Hungary, you must either own a legal entity in the country or use a global employment solutions provider. Native Teams can help you employ your new team members through our employer of record services and as well as handle payroll, taxes, benefits and overall compliance of your Hungarian team.

Hire your first Hungarian employee with Native Teams.

Legal requirements for hiring in Hungary

Minimum wage

As of 2022, the minimum wage in Hungary is 200,000 HUF for unskilled labor and 260,000 HUF for skilled labor.

Contributions & taxes

The employer must pay the contribution rate of 13% (e.g. “social tax”) for each employee as well as the social security contribution of 18.5%.

Employer tax

Employers are required to pay a 15.5% social tax on gross salary. Resident employers also pay a 1.5% contribution to the training fund. All contributions are uncapped.

Corporate tax

The corporate income tax rate in Hungary is 9%. 

Surtax: Various surtaxes are levied at a range of rates on financial institutions and financial transactions, such as telecommunication services, insurance, retail, and energy companies.

Employee tax

A Hungarian employee has to pay an average tax rate of 33.5%. While the average tax rate within OECD countries is 24.8%, this means that Hungarian employees take home 66.5% of their gross salary, compared with the OECD average of 75.2%.

Income tax

The personal income tax rate is 15% of the tax base. For resident taxpayers, the tax base amounts to their whole income, while in the case of non-resident taxpayers it represents their locally taxable incomes.

To calculate the salary and taxes in Hungary please click here.

Payroll cycle

The wages in Hungary are normally paid out monthly and must be paid out by the 10th of the following month at the latest.

Is there a 13th salary in Hungary?

A 13th-month salary is not mandatory in Hungary, but an employer can pay bonuses at their own discretion.

Labor rules

Probation period rules

The employer may request a probationary period, which cannot be longer than three months at the start of the employment. If the shorter period has been stipulated, the period of probation may be extended once.

Notice period 

Generally, the notice period in Hungary is 30 days, which can be increased to 90 days, depending on the position and the time spent on the employment contract.

Working hours

Similar to other European countries, Hungarians typically work 5 days per week, 8 hours per day; normally from 8 am to 4 pm or 9 am to 5 pm. Saturday and Sunday are considered rest days for most of the population.

All the work outside these standard working hours is considered overtime and has to be regulated by employment contracts or collective agreements.

Overtime hours of more than 40 hours a week are paid at 150.00% of the employee’s basic salary. Overtime hours during weekends or public holidays are paid at 200.00% of the employee’s basic salary.

Leave and benefits

Public holidays

There are 10 public holidays in Hungary for which the employees are entitled to a day off:

  1. New Year’s Day
  2. Revolution Day
  3. Easter Monday
  4. Labour Day
  5. Whit Monday
  6. Saint Stephen’s Day
  7. Republic Day
  8. All Saints’ Day
  9. Christmas Day
  10. Second Day of Christmas

Annual leave

Employees in Hungary are entitled to a minimum of 20 days off per year, with the amount increasing based on the age of the employee:

  1. Up to the Age of 25: 20 business days
  2. From the Age of 25: 21 business days
  3. Up to the Age of 31: an additional business day every 3 years
  4. Up to the Age of 45: an additional business day every 2 years
  5. From the Age of 45: 30 business days

Sick leave

Hungarian employees are entitled to 15 sick days annually when they are part of the national social security system. They generally receive 70% of their salary, which is paid by the employer. After 15 days, the number may vary between 50% – 60% depending on the term of service. Generally speaking, one-third is paid by the employer and the rest is paid by the country.

If an employee cannot proceed to work because of a work-related accident, for at least 4 days but no longer than 3 months, the employer must pay the injured employee at least 75% of their wage until they return to work. If the employee is unable to work for more than 3 months, they must claim compensation from the Hungarian Compensation Fund.

Maternity leave & paternity leave

Hungarian moms-to-be are entitled to 24 weeks of paid maternity leave. They must start to leave 4 weeks prior to the delivery date and are entitled to 70% of their average salary. During the first 6 months, the employee may take up to two hours of work time allowance daily and one hour after that until the child reaches 9 months.

Paternity leave in Hungary is 5 days, which has to be allocated within two months following the date of birth. The father is also entitled to take unpaid leave until his child reaches 3 years.

Parental leave

One of the parents is entitled to take additional parental leave until the child reaches 2 years of age. During the leave, they will receive 70% of previous earnings, which cannot exceed 70% of twice the minimum daily wage. One of the parents is also entitled to extra annual paid time off, 2 days for 1 child, 4 days for 2 children, or 7 days for more than 2 children under 16 years of age.

Other leave (marriage, bereavement, exam leave)

There is no other statutory leave in Hungary.


Health security & private Insurance

Hungary’s mandatory universal healthcare system is funded by payroll taxes and the general budget. 

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*


Relocation and work permits

Native Teams can be your Employer of Record and apply for your work permit in the country. You will be able to upload all the needed documents in our app. Native Teams will support you by giving you regular updates on the progress until you get your work and residence permit.

How long is the visa/work permit process?

Usually, it takes 2 to 4 weeks to get a work permit, depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Hungary, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Hungary?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

  • No paperwork: We will handle all the necessary paperwork for you.
  • Save on taxes: We help you handle your taxes.
  • No company set up: You can expand your business using our company entitles.
  • Online onboarding: We’re here to ensure your onboarding process is trouble-free.
  • No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
  • Increase your profit: We assist you in growing your business and maximizing your profits.
  • Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
  • Local support: We can assist you in understanding and complying with the relevant local laws.
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*Note: The provided information was accurate at the time of writing.

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