Hungary

Hungary is a Central European nation with a highly skilled, multilingual workforce, strong infrastructure, and cost-effective labor compared to Western Europe. As an EU member, it offers access to the single market and a favorable location for international business. However, employers must carefully navigate Hungary’s payroll, tax obligations, and labor regulations to stay compliant.
Contractor Management
Payroll
Currency
Hungarian forint (HUF)
Payroll Frequency
Monthly
Employer Taxes
17.00%

Overview

Population
~9.5 million
Language
Hungarian
Capital
Budapest
Currency
Hungarian forint (HUF)
Country code
+36
Min wage
296,400 HUF/month
Working hours
8 hours per day
Weekdays
Monday through Friday
Work hours per week
40 hours

Payroll

Salaried Employees
Time-Based Employees

Monthly (typically by the 10th of the following month)

13th Salary

Not legally required, though common in public sector and large companies

Avg employer tax

17%

Tax Breakdown

Employer Contributions: ~13%

Social Contribution Tax
13% on gross salary

Employee Contributions: ~18.5%

Pension Contribution
10%
Health Insurance Contribution
7%
Labor Market Contribution
1.5%

Personal Income Tax:

Flat rate
15% on all income

VAT

VAT

The general VAT rate is 27%.

Tax Calculation for Hungary
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HU
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Hungary typically includes the following steps to ensure a smooth transition for new hires:

Written Employment Contract

  • Must be signed before the employee starts work
  • Must include: salary, job title, place of work, working hours, probation, benefits, leave, notice terms
  • Must be in Hungarian (bilingual optional but Hungarian prevails in disputes)

Registration with Authorities

  • Submit employee data to the Hungarian Tax Authority (NAV) before the first working day
  • Employer must also register for social security

Required Documents

  • Personal ID, tax number, TAJ (social security) number, bank details
  • Proof of address and residency (for non-Hungarians)

Payslip Requirements

  • Monthly payslips must show gross salary, deductions, net pay, and leave balances
  • Employers must issue payslips and keep records for 5 years

Compliance Policies

  • Provide workplace safety guidelines, data protection policies (GDPR), and internal regulations
  • Remote work setup must be documented if applicable

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Hungary
When drafting an employment contract for employees in Hungary, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • First 15 days: Paid at 70% of salary by the employer
  • From day 16: Paid by the Social Security Office, at 60% of salary (if hospitalized, 50%)
  • Medical certificate required
Maternity leave
  • 24 weeks, must start 4 weeks before due date
  • Paid at 70% of average gross earnings, funded by social security
  • Following maternity leave, parents may take parental leave (GYES/GYED)

Paternity leave
  • 10 working days, taken within 2 months of birth
  • Paid at 100% of salary, funded by social insurance

Parental Leave:

  • Either parent may take unpaid leave until the child turns 3
  • Childcare benefits (GYED, GYES) are paid based on prior earnings and status
Annual Leave
  • Base entitlement: 20 working days/year
  • Increases with age:
    • +1 day from age 25
    • Up to 30 days/year after age 45
  • Additional leave for parents (1–7 days depending on number/age of children)
10 Public holidays in Hungary

Note: Employees are entitled to paid leave on public holidays. If worked, premium pay or time off in lieu is required.

1st
New Year's Day
15th
National Day
31st
Easter
1st
Labor Day
20th
Whit Monday
20th
Saint Stephen’s Day
23rd
1956 Revolution Day
1st
All Saints’ Day
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 15 Mar: 1848 Revolution Memorial Day
  • 2 Apr: Good Friday
  • 5 Apr: Easter Monday
  • 1 May: Labor Day / May Day
  • 24 May: Whit Monday
  • 20 Aug: Hungary National Day
  • 23 Oct: 1956 Revolution Memorial Day
  • 1 Nov: All Saints' Day
  • 25 Dec: Christmas Day
  • 26 Dec: Second Day of Christmas

Termination Process

Termination Grounds

  • Mutual agreement
  • Business reasons (redundancy)
  • Performance issues
  • Disciplinary dismissal
  • All terminations must be in writing with justification

Notice Period

  • Minimum: 30 days
  • Increases with tenure:
    • +5 to +60 extra days based on years of service
  • Payment in lieu of notice is allowed

Severance Pay

  • Required for employees terminated due to redundancy (not misconduct):
    • 3–5 years: 1 month
    • 5–10 years: 2 months
    • 10–15 years: 3 months
    • 15–20 years: 4 months
    • 20–25 years: 5 months
    • 25+ years: 6 months

Probation Period

Clarify the work schedule, paid leave entitlements, and sick leave policies.

Compensation

  • Up to 3 months
  • Termination during probation requires no notice or reason

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

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Grow Your Team in Hungary
with RemotePass

Hungary offers access to highly educated, cost-effective professionals across IT, engineering, and customer service. But hiring comes with strict contract, tax, and reporting requirements. With RemotePass, you can easily hire employees or contractors in Hungary—without setting up a local entity. We handle contracts, onboarding, payroll, and ongoing compliance, so you can scale your team with confidence.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Hungary.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hungary

Hungary is a Central European nation with a highly skilled, multilingual workforce, strong infrastructure, and cost-effective labor compared to Western Europe. As an EU member, it offers access to the single market and a favorable location for international business. However, employers must carefully navigate Hungary’s payroll, tax obligations, and labor regulations to stay compliant.
Contractor Management
Payroll
العملة
Hungarian forint (HUF)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
17.00%

نظرة عامة

التركيبة السكانية
~9.5 million
اللغة
Hungarian
العاصمة
Budapest
العملة
Hungarian forint (HUF)
رمز الاتصال الدولي
+36
الحد الأدنى للأجور
296,400 HUF/month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday through Friday
ساعات العمل اسبوعيا
40 hours

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني

Monthly (typically by the 10th of the following month)

13th Salary

Not legally required, though common in public sector and large companies

متوسط ​​ضريبة صاحب العمل

17%

تحصيل الضرائب

Employer Contributions: ~13%

Social Contribution Tax
13% on gross salary

Employee Contributions: ~18.5%

Pension Contribution
10%
Health Insurance Contribution
7%
Labor Market Contribution
1.5%

Personal Income Tax:

Flat rate
15% on all income

ضريبة القيمة المضافة

ضريبة القيمة المضافة

The general VAT rate is 27%.

حساب الضريبة في Hungary
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HU
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Hungary عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Written Employment Contract

  • Must be signed before the employee starts work
  • Must include: salary, job title, place of work, working hours, probation, benefits, leave, notice terms
  • Must be in Hungarian (bilingual optional but Hungarian prevails in disputes)

Registration with Authorities

  • Submit employee data to the Hungarian Tax Authority (NAV) before the first working day
  • Employer must also register for social security

Required Documents

  • Personal ID, tax number, TAJ (social security) number, bank details
  • Proof of address and residency (for non-Hungarians)

Payslip Requirements

  • Monthly payslips must show gross salary, deductions, net pay, and leave balances
  • Employers must issue payslips and keep records for 5 years

Compliance Policies

  • Provide workplace safety guidelines, data protection policies (GDPR), and internal regulations
  • Remote work setup must be documented if applicable

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Hungary
عند إعداد عقد عمل للموظفين في Hungary يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • First 15 days: Paid at 70% of salary by the employer
  • From day 16: Paid by the Social Security Office, at 60% of salary (if hospitalized, 50%)
  • Medical certificate required
إجازة الأمومة
  • 24 weeks, must start 4 weeks before due date
  • Paid at 70% of average gross earnings, funded by social security
  • Following maternity leave, parents may take parental leave (GYES/GYED)

إجازة الأبوة
  • 10 working days, taken within 2 months of birth
  • Paid at 100% of salary, funded by social insurance

Parental Leave:

  • Either parent may take unpaid leave until the child turns 3
  • Childcare benefits (GYED, GYES) are paid based on prior earnings and status
Annual Leave
  • Base entitlement: 20 working days/year
  • Increases with age:
    • +1 day from age 25
    • Up to 30 days/year after age 45
  • Additional leave for parents (1–7 days depending on number/age of children)
10 عطلات رسمية في Hungary

Note: Employees are entitled to paid leave on public holidays. If worked, premium pay or time off in lieu is required.

1st
New Year's Day
15th
National Day
31st
Easter
1st
Labor Day
20th
Whit Monday
20th
Saint Stephen’s Day
23rd
1956 Revolution Day
1st
All Saints’ Day
25th
Christmas Day
26th
Boxing Day
  • 1 Jan: New Year's Day
  • 15 Mar: 1848 Revolution Memorial Day
  • 2 Apr: Good Friday
  • 5 Apr: Easter Monday
  • 1 May: Labor Day / May Day
  • 24 May: Whit Monday
  • 20 Aug: Hungary National Day
  • 23 Oct: 1956 Revolution Memorial Day
  • 1 Nov: All Saints' Day
  • 25 Dec: Christmas Day
  • 26 Dec: Second Day of Christmas

عملية إنهاء العقود

Termination Grounds

  • Mutual agreement
  • Business reasons (redundancy)
  • Performance issues
  • Disciplinary dismissal
  • All terminations must be in writing with justification

Notice Period

  • Minimum: 30 days
  • Increases with tenure:
    • +5 to +60 extra days based on years of service
  • Payment in lieu of notice is allowed

Severance Pay

  • Required for employees terminated due to redundancy (not misconduct):
    • 3–5 years: 1 month
    • 5–10 years: 2 months
    • 10–15 years: 3 months
    • 15–20 years: 4 months
    • 20–25 years: 5 months
    • 25+ years: 6 months

Probation Period

Clarify the work schedule, paid leave entitlements, and sick leave policies.

Compensation

  • Up to 3 months
  • Termination during probation requires no notice or reason

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Hungary
مع ريموت باس

Hungary offers access to highly educated, cost-effective professionals across IT, engineering, and customer service. But hiring comes with strict contract, tax, and reporting requirements. With RemotePass, you can easily hire employees or contractors in Hungary—without setting up a local entity. We handle contracts, onboarding, payroll, and ongoing compliance, so you can scale your team with confidence.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Hungary.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

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