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Hungarian Forint is the official currency of Hungary. Its currency symbols are Ft, HUF
Estimated at 13% of employees salary
Hungarian is the official language of Hungary
The population of Hungary is 10 Million
Employees are paid monthly
To start growing your team in Hungary you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring in Hungary offers significant advantages, such as access to a skilled and educated workforce, particularly in fields like IT and engineering, and competitive labour costs compared to Western Europe. In addition to this, Hungary’s population has a literacy rate of 99%, backed by a strong education system, resulting in an extremely intelligent workforce. The country’s central location in Europe provides strategic benefits for businesses aiming to operate across the EU. However, challenges include navigating complex labour regulations, which can be time-consuming and require local legal expertise. Additionally, high payroll taxes and social security contributions can increase overall employment costs. Language barriers and bureaucratic hurdles in administrative processes may also pose obstacles, potentially affecting communication and operational efficiency.
However, challenges include navigating complex labour regulations, which can be time-consuming and require local legal expertise. Additionally, high payroll taxes and social security contributions can increase overall employment costs. Language barriers and bureaucratic hurdles in administrative processes may also pose obstacles, potentially affecting communication and operational efficiency.
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| Social Security Contribution Tax | 13% |
Pension contributions
PTO
Health insurance
Parental leave
Car Allowances
Phone allowances
Meal allowances
The probation period in Hungary must not exceed 3 months.
Emerald Technology can onboard employees in Hungary within 48 hours.
In Hungary, restrictive covenants in employment contracts include:
In Hungary, there is a mandatory public healthcare system that provides health insurance for residents, EU citizens and foreigners working in Hungary if they contribute to social security. The healthcare system is funded by social security contributions and is managed by National Health Insurance Fund (NEAK). Both employers and employees contribute to this fund that covers most essential medical services such as, hospitalization and prescriptions.
Social security contributions are mandatory in Hungary and they cover numerous benefits such as, pensions, healthcare and unemployment services. The contributions fund the Hungarian Social Security System. Employers contribute 13% of their employee’s gross salary to cover healthcare, pension insurance and other related benefits. Employees contribute 18.5% of their gross salary to cover pensions, healthcare, sick leave, parental leave, and unemployment benefits.
Female employees are entitled to 24 weeks (168 days) maternity leave which can start 4 weeks before the birth. During maternity leave, employees receive a maternity allowance which typically amounts to 70% of their usual salary. Throughout this period their contracts must not be terminated.
A father is entitled to 10 days paternity leave to be taken within 2 months of the birth of the child.
Both parents are entitled to 44 days (individually) of parental leave, up until the child reaches the age of 3 – provided the employee has worked the company for at least 1 year.
The employee is entitled to 15 days sick leave per year, for which the employer should pay the individual 70% of their usual salary. Beyond this 60% of their salary is covered by the Hungarian social security system.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Length of employment | Notice period |
| 0-3 years | 30 days |
| 3-5 years | 35 days |
| 5-8 years | 45 days |
| 8-10 years | 50 days |
| 10-15 years | 55 days |
| 15-18 years | 60 days |
| 18-20 years | 70 days |
| 20+ years | 90 days |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Length of employment | Severance |
| After three years of service | 5 additional days’ notice is required |
| After five years of service | 15 additional days’ notice is required |
| After eight years of service | 20 additional days’ notice is required |
| After ten years of service | 25 additional days’ notice is required |
| After fifteen years of service | 30 additional days’ notice is required |
| After eighteen years of service | 40 additional days’ notice is required |
| After twenty years of service | 60 additional days’ notice is required |
Employees in Hungary are entitled to a minimum of 20 days PTO per year.
New Year’s Day
Revolution Day
Good Friday
Easter Monday
Labour Day
Whit Monday
Saint Stephen’s Day
Republic Day
All Saints’ Day
Christmas Day
2nd Day of Christmas
1,534 HUF per hour
The average working week is 40 hours (5 days of 8 hours)
Overtime cannot exceed 48 hours per week. Overtime during the week should be paid at 150% of the regular salary, during weekends or public holidays it should be compensated at 200%.
Employees get paid monthly
Not legally required
Income Tax: Hungary applies a flat rate of 15% income tax, regardless of income level.
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