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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Capital :
Budapest
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Currency :
Hungarian Forint (Ft, HUF)
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Languages spoken :
Hungarian
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Population :
9.71 million (2021 est.)
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Minimum wage 2023 :
HUF 296,400 Monthly for Skilled Employees
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Cost of Living index :
$$ (81 of 139 nations)
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Payroll Frequency :
Monthly
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VAT - standard rate :
27%
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GDP - real growth rate :
7.1% (2021 est.)
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The national holidays mentioned below are valid for the year 2024.
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.
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 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).
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 |
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.
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 terms of service. One-third is paid by the employer and the remaining amount is paid by the state.
Parental leave is granted to both father and mother until the child is three years old, if the employment relationship has existed for at least one year. Parental leave is a total of 44 days until the child is three years old (not annually).
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.
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.
Upon the birth of his child, a father is entitled to 10 days of paid extra vacation time which must be granted in two installments at most, at the request of the employee, until the end of the second month after the birth. The employee’s absence fee for the first five working days and the amount of the employer’s public burden will be reimbursed to the employer from the central budget. For the second five working days, 40% of the absence fee is paid by the employer.
Maternity leave is also provided to a woman who has been given custody of a child for the purpose of adoption.
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 absence | Maximum Period of Absence |
| Death of a relative | 2 days |
| Receiving treatment in a healthcare institution related to a human reproduction procedure | Duration of the procedure |
| Mandatory medical examination | Duration of examination |
| Donating blood | Length of time required for donating blood; |
| Nursing mothers | 1 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 parties | For the duration of the training |
| Engaging in fire fighting operations in a voluntary or industrial fire brigade | For the duration of fire fighting |
| Called upon by the court or authority for participation in proceedings in person | Duration of participation in the proceedings |
| Personal or family reasons deserving special consideration, or as justified by unavoidable external reasons | Any duration as justified |
| Exemption from duty by the employer in order to investigate the circumstances of an employee’s breach of obligations | Up to 30 days |
Employees are entitled to unpaid leave at times requested by the employee under the following circumstances:
An employee is exempt from the obligation to work for 5 working days a year if they are caring for a relative who needs care due to serious health reasons, or a person living in the same household as the employee. Except for the first six months of the employment relationship, an employee caring for a relative can also request flexible working conditions (change of place of work and work schedule, telework employment, or part-time employment);
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.
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.
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.
It is provided for employees for whom rehabilitation is possible within an expected time frame. Rehabilitation benefits are paid for under sickness and maternity benefits.
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).
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).
The age limit for a full old-age pension is 65 years.
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.
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, spouse of the parent, adoptive parent, or 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 the 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 a child care fee of up to two years of age for the child (or the age of three in the 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 the case of twins) and under 18 if the adoptive parent is entitled to the Child care fee.
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.
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