Countries

Hire in 匈牙利

Learn more about employment regulations, pay requirements, and other important information about hiring workers in 匈牙利.
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匈牙利名义雇主

如果您在匈牙利拓展业务或雇佣员工时最担心的问题是不够迅速或缺乏当地专业知识,那么名义雇主也许是您实现全球发展目标的最优选择。

名义雇主(有时也被称为国际PEO)使您能够在匈牙利快速招聘员工并使其入职(通常只需两周时间),而无需承担建立当地实体的成本和风险。

Hiring in Hungary

The main source of employment law in Hungary is the Labor Code, which came into force in 1992 and was significantly revised in 2012. Another important source of law is the Constitution of Hungary, which protects the basic rights of employers and employees.

The employer must prepare a written employment contract, and if it does not, the employee is entitled to challenge the validity of the employment contract within 30 days from the first day of work.

Employment contracts in Hungary

As you look to hire employees in Hungary, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

Eight hours a day, five days a week is considered full-time employment.

If the scheduled daily working time or overtime exceeds six hours, the employee is entitled to a minimum 20-minute uninterrupted break from work. If the duration of work exceeds nine hours. An additional 25-minute break must be given to the employee.

Employees must be allowed at least 11 hours of uninterrupted rest after the conclusion of daily work and before the beginning of the next day’s work. If the employee works split shifts, continuous shifts, multiple shifts, or in seasonal or on-call duty positions, the daily rest period must be at least eight hours.

Employers can require employees to work up to 400 hours of overtime per year.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

  • Currently, the minimum wage is HUF266,800 ($753) a month, while the average gross wage ex-bonuses was HUF593,000.
  • The Hungarian government and employers agreed to raise the minimum wage over a three-year period to 50% of the average gross wage, excluding bonuses.
  • Employees must be paid a 50% allowance in addition to regular wages for working on Sundays in certain circumstances.
  • Employees must be paid a 15% allowance for working at night if the work exceeds one hour (performed between 10:00 p.m. and 6:00 a.m.) provided that the employee is not entitled to shift allowance.
  • If scheduled work time frequently changes, the employee is entitled to a shift allowance of 30% for work performed between 6:00 p.m. and 6:00 a.m.
  • In addition to the contractual base salary, employees are entitled to additional remuneration:
  • Employees are entitled to a 50% wage allowance for overtime work (if no compensatory paid time off is provided), 100% for overtime work on a rest day (or 50% if another rest day is provided) in addition to normal salary.

As your employer of record in Hungary, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Bonuses are at the discretion of the employer.

Probationary period

A probationary period cannot exceed three months, and a trial period agreed in a collective bargaining agreement cannot exceed six months.

If the stipulated probation period does not reach the maximum, it may be extended once up to the maximum duration.

Termination and severance

The notice period must be at least 30 days, which can be longer if stipulated in the contract but cannot exceed six months except in the case of senior executive employees.

During the probation period, either party may terminate the employment relationship without cause and with immediate effect.

In the case of termination with regular notice by the employer or in the case of its dissolution without a legal successor, redundancy payments must be made to employees who have worked for at least three years for the employer.

The severance payment is calculated based on length of service as follows:

  • one month for up to three years of employment
  • two months for up to five years
  • three months for up to 10 years
  • four months for up to 15 years
  • five months for up to 20 years
  • six months for up to 25 years.

The employee is entitled to receive an additional payment of up to three months’ absence fee if employment is terminated within five years of eligibility for retirement pension.

An employee who is deemed to be “retired” under the Labor Code at the time of termination of employment is not entitled to a redundancy payment.

Employee benefits and paid leave in Hungary

When negotiating terms of an employment contract with a candidate in Hungary, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Women employees are entitled to 24 weeks of maternity leave, which begins 4 weeks before childbirth.

Mothers are entitled to 1 hour of leave twice a day (or 2 hours twice a day in the case of twins) during the first 6 months and subsequently 1 hour per day until the end of the ninth month post-childbirth.

Employees are entitled to unpaid leave to provide care:

  • Until a child is 3 years old.
  • Until a child reaches 10 years when the employee is eligible for the child-care allowance.

Vacation

Employees are entitled to 20 days of annual leave. The number of leave may increase depending on the age of employees (not the seniority) up to 10 additional days.

Also, employees may get additional leaves in certain circumstances mentioned below:

  • Employees under 18 years are entitled to 5 extra days of leave annually.
  • Parents are entitled to additional leave depending on the number of children under the age of 16:
  • Employees working in hazardous conditions for at least 3 hours a day or permanently working underground are entitled to 5 additional days’ leave annually.
  • Employees receiving blind or disability benefits and those with at least 50% disability are entitled to 5 additional days leave annually.

Holidays

Under the Labor Code, the following national holidays are observed:

  • New Year’s Day
  • Labor Day
  • Whit Monday
  • Hungary National Day
  • Public Holiday
  • 1956 Revolution Memorial Day
  • All Saints’ Day
  • Public Holiday
  • Christmas (two days)

Holidays are observed on their calendar date. They are not moved if they fall on a weekend or a Tuesday, Wednesday, or Thursday.

Sick leave

Employees are entitled to 15 days leave in a calendar year if they are unable to work due to sickness, excluding workplace injuries, types of illnesses mentioned in the social insurance provisions, and inability to work due to endangered pregnancy.

During the sick leave, employees receive 70% of their absence fee (total compensation including base salary plus other allowances) for the 15-day sick leave. If those employees are still not able to work after 15 days, partly the social security and partly the employer cover the compensation, but only for up to one year.

Health coverage

Early retirement benefits are available for certain individuals, including those employed in arduous or unhealthy conditions.

Additional benefits

In addition to healthcare benefits, employees in Hungary are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Hungary, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: September 19, 2024

Employee onboarding with an employer of record in Hungary

We write and validate all local employment contracts, streamlining the onboarding process for you and your Hungarian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Hungary, we will:   

  • Schedule a welcome call to discuss HR and employment information for Hungary, as well as answer any questions 
  • Prepare a customized employment contract in English or other local language 
  • Share the employment contract and benefits information with the new employee for signature and review 
  • Gather tax and banking information from the employee to set up payroll 
  • Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll 

The entire onboarding process for the employee is often completed in as little as two weeks. 

Partner with Safeguard Global as your Hungary employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Hungary. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.