Hire in Hungary

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.

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A quick overview of Hungary

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Cost of living index

$$ (81 of 139 nations)

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Currency

Hungarian Forint (Ft, HUF)

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Payroll frequency

Monthly

Basic facts

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

Official language/s

Hungarian

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Population

9.58 million (2023 est.)

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VAT - standard rate

27%

The national holidays mentioned below are valid for the year 2025.

January 1New Year’s Day
March 15Revolution Day
April 18Good FridayMovable - Friday before Easter
April 21Easter MondayMovable - First Sunday after the first full moon following the northern spring equinox
May 1Labor Day
June 9Whit MondayMovable - The day after Pentecost
August 20Saint Stephen’s DayAlthough the day is not movable, the holiday may be observed on another day if it falls on a weekend
October 23Republic Day
November 1All Saints Day
December 25Christmas Day
December 26Second 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.

  • Mothers are exempt 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.

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.

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.

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 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

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 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
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 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

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 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

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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.

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.