Hire employees in Hungary
With Nomad Global Hire PEO / EOR services, you can easily hire employees in Hungary, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Hungary
Hungary has an interesting Startup ecosystem
Employer Tax
Estimated at 13%
Currency
HUF, Hungarian Florint
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Up to 15%
Payroll Frequency
Monthly over 12 payments
Main Universities
University of Szeged, University of Debrecen, University of Pecs
Capital
Budapest
Population
Circa 10 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Hungary has a very important history and is now a strong place for Startups as well. Hungary has developed into an interesting hub and managed to build a startup ecosystem from scratch, even allowing for the birth of a few “Unicorns“under the impulsion of the government who decided a decade ago to boost innovative entrepreneurship. Budapest, but also Szeged and Debrecen, have large startup communities. Some of the Startup success stories in Hungary are Prezi, Ustream, LogMeIn or AImotive. If you want to hire local talent, NOMAD will manage the local employment for your new employees, the contracts, the payroll and make sure you are always 100% compliant.
Payroll, Benefits & Tax in Hungary
- Average Salary in Hungary is 570,000 HUF Gross per month
- Employer Tax in Hungary is usually 13%
- This includes Pension, Accident, Benefits and Health Insurance
- Employee Tax in Hungary is at a flat rate of 15%
- Overtime payment in Hungary is mandatory and has to be paid by law. Overtime is limited to 8 hours weekly and can be compensated up to 150% on Weekdays and up to 200% of the standard hourly rate of the employee on Weekend.
- Payroll Frequency in Hungary is Monthly over 12 months
- Statutory Leave is 20 days minimum per year up
- Bank holidays: there are 13 national public holidays in 2023 in Hungary
- Termination can only be done for a just cause in Hungary, see below
- Maternity Leave in Hungary is up to 24 paid weeks for mothers with at least 2 years in the company. The Mother has to take 4 weeks before the birth date. During this time, leave is paid at by the Social Security.
- Paternity Leave in Hungary is 5 days, during which the salary will be paid by the employer although this can then be requested to be covered and reimbursed by the Social Security.
- There is no Parental Leave in Hungary
- Sick Leave is covered for up to 15 days per year. The employer will pay 30% of the salary while the rest is covered by the Social Security
- Notice period is depending on the length of service of the employee in the business and is of a minimum of 30 days (goes up after 2 years).
The Hungarian Labor Code is setting the framework for employment in Hungary. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Hungary
- Probation period are not mandatory under Hungarian Labour Law
- Probation period in Hungary however can be of a maximum of 3 months or 90 days, and therefor cannot be extended
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in Hungarian but can also be in English (but then has to be both at the same time)
- Termination is Hungary is generally a complicated process and requires particular care. In order to be compliant, Termination can occur for just cause only as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, unsuitability to the role or objective grounds (repeated poor performance)
- The minimum notice period in Hungary is 30 days (for service of less than 2 years), then it increments to 35 days for 2 to 3 years, then 50 days up to 5 years …
- There is no notice period during the probationary period
- Severance payments in Hungary are mandatory and is depending on the length of employment, from 1 month severance in the first 3 years to 6 months for 25 years of service
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Hungary is estimated around 13% (may vary depending on circumstances)
- Social Security Contributions (locally called Social Tax)
- Others
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