The Republic of Hungary is a landlocked European country covering 93,028 square kilometers, making it an attractive destination for companies looking to hire in Hungary. 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—making direct hiring in Hungary and hiring Hungarian employees particularly attractive for global companies.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Hungary.
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The Republic of Hungary is a landlocked European country covering 93,028 square kilometers, making it an attractive destination for companies looking to hire in Hungary. 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—making direct hiring in Hungary and hiring Hungarian employees particularly attractive for global companies.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Hungary.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Hungary planning:
The national holidays mentioned below are valid for the year 2026 and apply equally when you hire employees in Hungary through EOR Hungary, Hungary EOR, or direct hiring in Hungary.
| January 1 | New Year’s Day | |
| March 15 | Revolution Day | |
| April 3 | Good Friday | Movable - Friday before Easter |
| April 6 | Easter Monday | Movable - First Sunday after the first full moon following the northern spring equinox |
| May 1 | Labour Day | |
| May 25 | 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 |
The approximate time for sharing the contract with an employee in Hungary is 2 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, whether onboarding through an Employer of Record service provider in Hungary or direct hiring in Hungary.
Hungary has a number of social security systems to provide for the wellbeing of its people, including:
The social security deductions payable by the employer are 13% of employees’ gross income. The employer does not have to pay a vocational training contribution, whether choosing EOR Hungary or direct hiring in Hungary.
Regular working hours in Hungary 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 no 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 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). These rules apply consistently when hiring Hungarian employees or hiring contractors in Hungary compliantly.
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.
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 Service | Applicable Notice |
| Less than 3 years | 30 days |
| 3 years – less than 5 years | 35 days |
| 5 years – less than 8 years | 45 days |
| 8 years – less than 10 years | 50 days |
| 10 years – less than 15 years | 55 days |
| 15 years – less than 18 years | 60 days |
| 18 years – less than 20 years | 70 days |
| 20 years and above | 90 days |
Regular working hours in Hungary 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 no 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 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). These rules apply consistently when hiring Hungarian employees or hiring contractors in Hungary compliantly.
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.
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 Service | Applicable Notice |
| Less than 3 years | 30 days |
| 3 years – less than 5 years | 35 days |
| 5 years – less than 8 years | 45 days |
| 8 years – less than 10 years | 50 days |
| 10 years – less than 15 years | 55 days |
| 15 years – less than 18 years | 60 days |
| 18 years – less than 20 years | 70 days |
| 20 years and above | 90 days |
Hungary has a number of social security systems to provide for the wellbeing of its people, including:
The social security deductions payable by the employer are 13% of employees’ gross income. The employer does not have to pay a vocational training contribution, whether choosing EOR Hungary or direct hiring in Hungary.
WorkMotion operates through its own entity in Hungary, which means every hire is backed by direct compliance accountability – not a third-party partner arrangement.
Here is how the process works from contract to payroll.
WorkMotion generates an employment contract aligned with Hungary’s Act I of 2012 Labour Code.
The contract is prepared in Hungarian (as required for local compliance), covers the mandatory terms—base wage, job position, working hours, and place of work—and is ready for e-signature on the platform.
Because the contract must specify the personal base wage and position as essential terms under Hungarian labour laws, WorkMotion’s templates are built to include these requirements by default, with no manual drafting required from your team.
Before the employee’s first day, WorkMotion handles the mandatory pre-employment notification to the National Tax and Customs Office (NAV) using form T1041.
This declaration must be submitted no later than the day before employment starts. WorkMotion also manages registration via the Cégkapu (Company Gate), Hungary’s official government portal for statutory filings, and registers with the Hungarian Central Statistical Office (KSH) where required.
Meaning the new hire is legally enrolled from day one.
WorkMotion configures payroll in Hungarian Forints (HUF) and calculates gross-to-net accurately for each employee.
This includes:
All contributions are submitted to NAV by the 12th of the month following the pay period, in line with statutory deadlines.
WorkMotion also applies applicable tax reliefs, including the under-25 personal income tax exemption and family tax allowances, so that payslips are accurate from the first cycle.
WorkMotion enrols each employee in Hungary’s state social security system, covering healthcare, pension, and unemployment insurance.
Mandatory annual leave entitlement starts at 20 days and increases with age. WorkMotion tracks this automatically.
Parental leave entitlements, including maternity leave (24 weeks at 100% via social security) and the GYES/GYED childcare benefit system, are administered in line with the Labour Code.
For employers looking to offer competitive packages, WorkMotion can also support optional benefits such as the SZÉP card, Hungary’s preferential-tax fringe benefit used for hospitality, leisure, and (within current limits) grocery spending.
Each month, WorkMotion processes payroll, issues compliant Hungarian-language payslips, and remits all employer and employee contributions to NAV on schedule.
Monthly Social Security declarations are filed electronically via the Cégkapu portal.
No manual steps are required from your HR or finance team.
Hungary’s Labour Code is amended regularly. Minimum wage rates are renegotiated annually, and changes to parental leave rules, occupational health requirements, and tax thresholds take effect on rolling timescales.
WorkMotion monitors these changes and automatically updates employment terms, contribution rates, and benefit entitlements. As the IEC Gold-certified EOR provider, WorkMotion carries the compliance burden, so your team does not have to track Hungarian regulatory updates internally.
For most companies hiring one to a handful of employees in Hungary, the EOR model removes the overhead and risk of setting up an entity.
Here’s how the two paths compare.
| Factor | WorkMotion EOR | Own Hungary Entity |
|---|---|---|
| Setup cost | No setup cost beyond the per-employee EOR fee | Legal, notarial, and registration fees; minimum share capital of HUF 3,000,000 (~€7,300) for a Kft; plus ongoing accounting and compliance costs |
| Time to first hire | Days. Contract generated and employee registered before their start date | Can be weeks to months. Company registration, bank account opening, NAV registration, and payroll setup are all required before hiring |
| Ongoing legal exposure | WorkMotion carries the employer-of-record liability; your company manages the work | Your company is the legal employer and bears full liability for Labour Code compliance, payroll accuracy, and statutory filings |
| Ongoing admin burden | Monthly payroll, NAV filings, and statutory declarations handled by WorkMotion | Monthly Cégkapu filings, NAV declarations, KSH reporting, and annual financial statements — typically requiring a local accountant |
| Exit flexibility | Wind down a hire without entity dissolution; scale up or down without fixed overhead | Entity dissolution is a formal legal process; fixed costs remain regardless of headcount |
Using an EOR in Hungary is well-suited to companies that need to hire quickly, want to test the market before committing to a permanent structure, or manage a small number of remote employees.
If you’re building a large local team over the long term and want full brand ownership of the employment relationship, WorkMotion’s Direct Hiring solution lets you register as a foreign employer in Hungary while WorkMotion handles payroll and compliance.
Hungary has a clear legal framework for employment, but several rules catch foreign employers off guard. These are the compliance gaps that come up most often.
Every new hire must be reported to the National Tax and Customs Office (NAV) using form T1041 no later than the day before employment starts.
Late registration triggers fines that scale with the delay: 5% for under 15 days, then rising to 30% beyond 30 days.
Employers unfamiliar with the Cégkapu portal often miss this step or file late. WorkMotion handles this notification as part of the standard onboarding process.
In Hungary, a probationary period exists only if it is stated in the employment contract.
If the contract is silent on probation, there is no trial period – and the full notice and justification requirements apply from day one. The maximum probation period is three months.
Companies that assume a default trial period applies, or who add probation clauses verbally, have no legal basis to terminate without notice or reason.
After the probation period, employers in Hungary must justify every dismissal in writing. The reasons must be clear, authentic, and substantial.
Courts in Hungary tend to interpret Labour Code provisions in favour of employees in disputes.
Vague or procedurally defective termination notices expose employers to reinstatement orders and back-pay liability.
Hungary maintains two statutory minimum wage levels:
Employers who apply the lower rate to qualified employees — or who fail to update salaries when the government revises rates annually — are in breach of the Labour Code.
WorkMotion monitors minimum wage changes and automatically applies the correct tier to payroll.
Unsure how much hiring your first Hungarian employee will cost? Check out our Employment Cost Calculator here.
Budapest has established itself as one of Central Europe’s primary tech hubs, with a growing pool of software engineers, product managers, and data specialists.
German and Dutch B2B SaaS and fintech companies – typically 50 to 300 employees – use WorkMotion’s employer of record Hungary service to hire senior developers and technical leads without opening a local subsidiary.
The hire is onboarded in days, paid in HUF, and fully enrolled in Hungarian social security, while the company retains day-to-day management of the work.
Post-Brexit, UK companies expanding into EU markets often need to hire locally in Central Europe to maintain EU-based operations.
Hungary offers:
WorkMotion’s EOR services in Hungary provide UK-headquartered scale-ups with a compliant path to hiring Hungarian employees without the complexity of incorporating a Hungarian Kft or independently navigating NAV registration.
Can you get a Hungarian employee hired compliantly, quickly, and without a six-month entity setup project? With WorkMotion, you can.
WorkMotion operates through its own entity in Hungary, which means locally compliant contracts, accurate HUF payroll, and full statutory enrollment handled from day one.
There’s no manual NAV registration for your team to manage, no Cégkapu portal to navigate, and no risk of missing Hungary’s pre-employment notification deadline.
Turn hiring from months into days. Book a Demo so WorkMotion’s team can walk you through the hiring process in Hungary.
WorkMotion operates through its own entity in Hungary – not a third-party partner arrangement. This means WorkMotion is directly accountable for compliance for every hire.
For companies evaluating EOR services in Hungary, this structure reduces the risk of compliance gaps that can arise when providers subcontract employment obligations to local partners.
Once the employment contract is signed, WorkMotion submits the mandatory pre-employment notification to Hungary’s National Tax and Customs Office (NAV) using form T1041 — which must be filed no later than the day before the employee’s start date.
In practice, WorkMotion can have a compliant Hungarian employment contract generated, signed, and the NAV notification submitted within days of receiving the hire details. Companies that have previously gone through entity setup — which requires company registration, bank account opening, and NAV enrollment before a single hire can begin — typically find the EOR timeline significantly faster.
The primary employer-side cost beyond gross salary is the 13% social contribution tax (szociális hozzájárulási adó), which is remitted monthly to NAV.
Employees contribute 18.5% to Social Security and 15% in personal income tax.
Hungary also maintains two statutory minimum wage tiers – HUF 290,800 per month for standard roles and HUF 348,800 for positions requiring at least secondary-level qualifications – and both thresholds increase annually. Therefore, payroll must be updated each January to remain compliant.
After the probation period (maximum of three months, and only valid if explicitly written into the employment contract), termination in Hungary requires written notice with substantiated justification. Vague or procedurally defective reasons expose employers to reinstatement orders and back-pay liability under the Labour Code.
Notice periods start at 30 days and increase with years of service, up to a maximum of 90 days. WorkMotion’s legal team manages the offboarding process, including notice period calculations, severance entitlements, and the final NAV deregistration filing, so your company does not carry the procedural risk of getting termination documentation wrong.
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