The Republic of Hungary is a landlocked European country covering 93,028 square kilometers. It shares borders with Austria, Croatia, Romania, Serbia, Slovakia, and Slovenia. Due to the country’s favorable geographical location at the crossroads of four main European transportation corridors, its transportation sector offers optimum conditions for transit traffic. Hungary is home to Lake Balaton, the largest in central Europe, and to a large number of spa towns and hot springs. Most of the country’s workforce is in the services sector which accounts for slightly less than two-thirds of the Gross Domestic Product (GDP). Trade, tourism, finance, and other economic services are highly developed. The major industries are the automotive sector, pharmaceuticals and medical technology, ICT, and food industries. 

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Hungary.

Capital :
Budapest
Currency :
Hungarian Forint (Ft, HUF)
Languages spoken :
Hungarian
Population :
9.71 million (2021 est.)
Minimum wage 2022 :
HUF 260,000 Monthly for Skilled Employees
Cost of Living index :
$$ (81 of 139 nations)
Payroll Frequency :
Monthly
VAT - standard rate :
27%
GDP - real growth rate :
7.1% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1
New Year’s Day
March 15
Revolution Day
April 15
Good Friday
Movable - Friday before Easter
April 18
Easter Monday
Movable - First Sunday after the first full moon following the northern spring equinox
May 1
Labor Day
June 6
Whit Monday
Movable - The day after Pentecost
August 20
Saint Stephen’s Day
Although the day is not movable, the holiday may be observed on another day if it falls on a weekend
October 23
Republic Day
November 1
All Saints Day
December 25
Christmas Day
December 26
Second Day of Christmas

Contract Sharing Time


The approximate time for sharing the contract with an employee in Hungary is 4 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • Mothers are exempted from personal income tax until the end of their lives if they have raised, are raising, or, at any time after January 1, 2020, will raise four or more children.
  • An employee’s total annual leave entitlement is based on age, the number of children, and health impairment, if any.
  • Sundays are classified as public holidays.
  • In the employment contract, the parties should agree on the employee’s employment by means of teleworking.

Labor Conditions


Working Hours

Regular working hours are 40 hours per week, Monday to Friday. The daily working time in full-time jobs is eight hours. Based on an agreement between the parties, the daily working time in full-time jobs may be increased to not more than 12 hours daily for employees:

a) Working in stand-by jobs;

b) Who are relatives of the employer or the owner (extended daily working time).

 

Overtime

Overtime work refers to work performed: outside regular working hours, over and above the hours covered within the framework of working time banking; over and above the weekly working time covered by the payroll period, where applicable; and the duration of on-call duty.

In a given calendar year, 250 hours of overtime work can be ordered. In addition, a maximum of 150 hours of overtime work can be ordered in a given calendar year subject to an agreement between the employee and the employer in writing (voluntary overtime). 

 

Probation Period

In the employment contract, the parties may stipulate a probationary period of not more than three months from the date of commencement of the employment relationship.

In the event that a shorter probationary period has been stipulated, the parties may extend the probationary period once. In either case, the duration of the probationary period may not exceed three months. 

Termination Notice Period

An employment relationship may be terminated by either party giving notice to the other. The notice must be given in writing and will take effect upon being communicated to the party concerned.

The notice period is at least 30 days, which, in the case of dismissal by the employer, may increase to 90 days depending on the employee’s length of service as illustrated in the table below.

Period of ServiceApplicable Notice
Less than 3 years30 days
3 years – less than 5 years35 days
5 years – less than 8 years45 days
8 years – less than 10 years50 days
10 years – less than 15 years55 days
15 years – less than 18 years60 days
18 years – less than 20 years70 days
20 years and above90 days

Leave / Time Off

Annual Leave

The annual paid holiday is 20 workdays, which increases with the age of the employee in categories with the maximum being 30 days. Employees are entitled to supplementary leave based on the length of service with the employer and/or the age of the employee.

Sick Leave

Employees are entitled to 15 working days of paid sick leave per calendar year for the duration of time during which the employee is incapacitated to work. During this time, the employer pays 70% of their salary. After 15 days, the amount paid varies from 50 to 60% depending on the term of service. One-third is paid by the employer and the remaining amount is paid by the state.

Parental Leave

Male and female workers both have the individual right to be granted a period of four months unpaid parental leave on the grounds of birth, fostering, adoption, or legal custody of a child.

Such leave may be taken until the child has reached the age of eight. In the event that the parental leave is not taken, or if there is still an existing balance of parental leave, an employee remains entitled to such leave even if they change employers or employment.

Unpaid Leave

Employees are entitled to unpaid leave at the times requested by the employee for the purpose of taking care of their child until the child reaches the age of three. In addition, employees are entitled to unpaid leave for providing care for a child in person until the child reaches the age of 10, during the period of receiving a child-care allowance, and child-care assistance benefits.

 

Maternity Leave

Mothers (including mothers given custody of, or adopt, a child) are entitled to 24 consecutive weeks of paid maternity leave, of which two weeks must be taken before childbirth.

The leave must start four weeks prior to the scheduled delivery date. The employee is entitled to 70% of her average salary. The duration of maternity leave, except where entitlement is specifically connected to work, is recognized as time spent at work. If the child receives treatment in an institute for premature infants, the unused portion of the maternity leave may be used after the child has been released from the institute up to the end of the first year following birth.

 

Paternity Leave

Upon the birth of his child, a father is entitled to five days of paid extra vacation time, or seven working days in the case of twins, until the end of the second month from the date of birth, which should be allocated on the days requested by the father. Such leave is also provided if the child is stillborn or dies.

 

Adoption Leave

Maternity leave is also provided to a woman who has been given custody of a child for the purpose of adoption.

 

 

Other types of Paid Leave

The salaries for the period of absence are borne by the employer. An employee is exempted from duty under the following circumstances: 

Leave Type / Reason for absenceMaximum Period of Absence
Death of a relative2 days
Receiving treatment in a healthcare institution related to a human reproduction procedureDuration of the procedure
Mandatory medical examinationDuration of examination
Donating bloodLength of time required for donating blood;
Nursing mothers1 hour twice daily; 2 hours twice daily in the case of twins during the first six months of breastfeeding

1 hour daily, or 2 hours daily in the case of twins until the end of the 9th month

Attend classes for employees pursuing elementary school studies;For the duration of classes
Participating in initial and continuing training by agreement of the partiesFor the duration of the training
Engaging in fire fighting operations in a voluntary or industrial fire brigadeFor the duration of fire fighting
Called upon by the court or authority for participation in proceedings in personDuration of participation in the proceedings
Personal or family reasons deserving special consideration, or as justified by unavoidable external reasonsAny duration as justified
Exemption from duty by the employer in order to investigate the circumstances of an employee’s breach of obligationsUp to 30 days

Unpaid Leave

Employees are entitled to unpaid leave at the times requested by the employee under the following circumstances:

  • Providing care for a relative in person for an extended period, foreseeably more than 30 days, for the duration of care, in any case for up to two years. The justification for the extended care is to be certified by the physician of the person in need of care;
  • For the duration of actual voluntary reserve military service.

Statutory Benefits

Hungary has a number of social security systems to provide for the wellbeing of its people, including:

  • National Health Insurance Fund (Országos Egészségpénztár), which administers cash sickness benefits (táppénz), maternity benefits (TGYÁS) and the child care fee (GYED) (website in Hungarian);
  • Hungarian State Treasury (Magyar Államkincstár), which administers family allowance (családi pótlék) and social child care fee (GYES);
  • Central Administration of National Pension Insurance (Országos Nyugdíjbiztosítási Főigazgatóség), which administers state pensions;
  • National Tax and Customs Administration (Nemzeti Adó és Vámhivatal), collects contributions.

Social security deductions payable by the employer for 2022 are 13% of employees’ gross income. From January 1, 2022, the employer does not have to pay a vocational training contribution.

Health Insurance

The employer contributes towards health insurance through social security contributions.

Employees benefit from national health insurance provided they pay social security contributions. The Ministry of Human Capacities (Emberi Erőforrások Minisztériuma) is responsible for health insurance and the health sector. The healthcare system includes the following: medical treatment, medicine, dental treatment, early detection and preventive testing, treatment at home, hospital care, medical appliances.

Other Insurances

Disability Benefit

The disability benefit varies according to the decision on the employee’s health status and the possibility of rehabilitation. The benefit is paid under sickness and maternity benefits and is replaced by the old-age pension at the normal retirement age.

 

Rehabilitation Benefit

It is provided for employees for whom rehabilitation is possible within an expected time frame. Rehabilitation benefits are paid under sickness and maternity benefits. 

Accident Insurance

The Hungarian health insurance system provides accident benefits coverage to insured persons. The insurance covers all injuries and illnesses incurred in the course of work that are work-related or happen on the way to or from work (accidents at work) and diseases and deterioration of a worker’s health due to the hazards peculiar to the job (occupational diseases). Benefits are paid according to a schedule set by the National Health Insurance Fund. Benefits include accident health services, work accident sickness benefit (Baleseti táppénz), and the work accident annuity (Baleseti járadék).

 

Unemployment Insurance

The employer’s contribution to the social security funds the unemployment benefits. 

A job-seeker who has worked for at least 360 days in the 3 years before becoming a job-seeker is entitled to a job-seeker benefit of 1 day’s benefit for every 10 days worked. This means that the minimum entitlement is for 36 days, and the maximum 90 days. The law provides for the job-seeker benefit to be paid for a maximum of 90 days, and the allowance equals 60% of the previous average pay, but the amount cannot be higher than 100% of the minimum wage (i.e. HUF 167,400 in 2021).

Public Pension

The age limit for the full old-age pension is 65 years as of 2022.

Benefits provided by the statutory pension system are old-age pensions (only above retirement age), 40 years eligibility period for women (nők 40 év jogosultsági idővel) and survivors’ benefits.

Persons who have reached statutory retirement age and have paid the necessary number of years of insurance contributions are eligible for an old-age pension.

Other Statutory Benefits

Family Allowances

 

Family allowances are provided through health insurance. The allowances are for raising and education expenses for children in a family.

 

Family Allowance (Családi pótlék)

This is a monthly allowance for raising and education expenses for children in a family. The beneficiary can be the biological parent, the spouse of the biological parent, the adoptive parent, the foster parent, the guardian, or any other person with whom a child has been temporarily placed.

 

Child Care Allowance (Gyermekgondozást segítő ellátás)

Child care allowance is payable to the parent, the spouse of the parent, the adoptive parent, or the guardian of a child raised under their roof until the age of three or, in the case of twins, until the end of the first year of compulsory schooling or in the case of a chronically ill or seriously disabled child, until the age of 10.

Child Raising Support (Gyermeknevelési támogatás)

This support is paid to the parent, the spouse of the parent, the adoptive parent or guardian who is raising three or more minor children in their household.

 

Child Care Fee (Gyermekgondozási díj)

The parent considered as entitled under the health insurance scheme – either the mother or the father – may be entitled to a child care fee until the child has reached the age of two (or the age of three in case of twins). If the parent is not entitled under the health insurance scheme, then a so-called degree holder’s child care fee is available starting from the birth of the child, up to the age of two.

As of January 1, 2021, grandparents who are entitled under the health insurance scheme may also apply for the Child care fee up to two years of age of the child (or the age of three in case of twins) as is a foster parent from the day of fostering, up to two years of age of the child.

 

Adoption Fee (Örökbefogadói díj)

The Adoption fee is granted after the domestic adoption of all children over the age of two (age three in case of twins) and under 18 if the adoptive parent would be entitled to the Child care fee.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

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