Country Guides

Hungary

Quick Find

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Capital

Budapest

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Language

Hungarian

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Remote workers

1.5%

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Currency

Ft Hungarian forints/HUF

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Working hours

40-48 hours per week

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Public holidays

11 days per year

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Minimum monthly salary

HUF 322,800 gross for unskilled workers, HUF 373,200 for skilled workers

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Tax year

Jan 1 - Dec 31

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Date format

YYYY/MM/DD

Misclassification penalties

Penalties for misclassification range between HUF 300,000 and HUF 10,000,000.

Fun fact

It is considered rude to clink your beer glasses.

Employer contributions

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    Employer tax: 13%
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    Social Security: 13%

Employee contributions

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    Employee tax: 33.5%
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    Social Security: 18.5%
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    Income tax: 15% (not applicable to employees under 25)

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Employer of Record in Hungary

What is an EOR?

An Employer of Record, which in Hungary requires holding a temporary agency licence, is the legal employer of a worker in Hungary. As such, the temp agency takes care of all Hungary compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

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    Ensuring their employment is compliant with local employment laws
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    Processing local payroll
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    Filing employment related taxes and returns
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    Issuing payslips to the employee
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    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory benefits in Hungary

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    Medical examination of new hires
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    Occupational health & safety training

Common non-mandatory benefits in Hungary

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    Company social & cultural benefits
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    Additional days off
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    Supplementary health insurance

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    Supplementary life insurance
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    Cash bonus
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    Flexible work
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    Sports allowance
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    Telephone costs
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    Meals
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Written employment agreement

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Protection of personal information

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Protection from harassment

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Healthy and safe working conditions

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Equal treatment

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Union membership and other collective agreement rights

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Intellectual property protection

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Compensation for non-compete agreement

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Protection against discrimination and dismissal

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Pay transparency

Paid time off

20 days + public holidays + additional days off determined on age

Sick leave

15 weeks

Maternity leave

24 weeks

Paternity leave

10 working days

Parental leave

44 days until child is 3 years old after 1 year continuous service at 10% of absence fee

Probation

The probation period in Hungary can be up to three months long.

Non-compete

A non-compete agreement must be put in writing. Employees must be compensated for the non-compete agreement, since they cannot work in the field of their expertise during the term of the non-compete agreement. The minimum such compensation is one-third of the employee’s base salary.

Payment frequency

Hourly or monthly

Payday

Salaries must be paid by the 10th day following the month in question. Salaries can be paid in cash or via a bank transfer to an account specified by the employee.

An employment contract concluded for an indefinite term may be terminated in the following ways:

• by mutual agreement (at any time,  the law does not contain any explicit provisions regarding this kind of termination);

• by dismissal notice (by both parties, termination of an indefinite period contract by the employer can be based only on three groups of reasons. Also, there are specific rules for both parties on termination of the employment contracts concluded for a definite period);

• by termination with immediate effect (when the employee significantly breaches his/her obligations, otherwise behaves in a way that makes the continuance of the employment impossible, can be used during the probation period).

There are also guarantees in case of mass redundancy and for employment termination for certain categories of employees. There are various kinds of statutory severance payments but only for those who are employed for more than three years.

Disputes concerning unlawful dismissals are solved in competent courts.

FAQs

Hiring in Hungary typically involves four approaches. You can run payroll from your HQ for short-term cases, engage contractors for project-based work, set up a local entity to hire directly, or partner with a temp agency licence holder. The EOR model isn’t recognised in Hungary, Boundless holds the required temp agency licence to employ staff compliantly without setting up a local entity.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Hungary, employment is the right structure under Hungarian law, covering entitlements like paid annual leave, sick leave, severance, and social security contributions. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Hungary.

HR compliance in Hungary means your policies and procedures respect all applicable Hungarian employment laws and regulations. When you hire in Hungary, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave (15 weeks), severance pay, annual leave (20 days plus age-based extras), minimum wage, tax credits, and working hours. Following these is fundamental for running the business well.

The EOR model isn’t recognised in Hungary, a temp agency licence is required, and Boundless holds one. We are the legal employer of the individual for government, tax, and employment purposes, providing a locally compliant contract, running payroll, filing employment taxes, and administering statutory benefits such as 24 weeks of maternity leave and 20 days of annual leave. You manage day-to-day work and fund payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including Hungary. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

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