Social Security: 13%
Social Security: 18.5%
Income tax: 15% (not applicable to employees under 25)
Paid time off: 20 days + bank holidays + additional days off determined on age
Paternity leave: 5 days (in some cases 7 days)
Sick leave: 15 weeks
Parental leave: 2-7 days
Maternity leave: 24 weeks
HQ country employment & payroll
Independent contractor agreements
Direct local employer setup
Partnering with an Employer of Record Hungary /Temp agency
Setting up a local company in Hungary can be time-consuming and complicated. That is further complicated by the monthly activities - payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed. Here is an overview of everything you will find yourself needing to do.
As with every other country, there are certain costs associated with employing a worker in Hungary that come on top of the gross salary you are offering. In Hungary that is social security. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
Boundless as the Employer of Record Hungary (temp agency licence holder) files all pertinent taxes and contributions to the National Health Insurance Fund as they relate to the compliant employment of an individual in their home country.
Any new employee that is locally employed through a temp agency in Hungary gets full employment rights and benefits as specified in local law. They get a locally compliant employment contract, statutory maternity leave, annual leave, illness benefits, any relevant tax credit, severance pay and many more.
In Hungary, both employers and employees have to pay taxes. For employers, that includes social security and for employees, they include social security and income tax. To get a clear overview with both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.