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Benefits in Hungary

Mandatory Employee Benefits in Hungary

Medical examination of new hires

Before employment begins, new hires must undergo a medical examination and each year after that. A doctor may determine a more regular cadence. Employers cover the expenses for the examinations.

Occupational safety and health training

The employer must conduct health and safety training at work, and all employees must participate. Such training has to happen during working hours at the employer’s expense and should be described and organized in written form.

The following are the types of routine training:

  • Initial training for new hires, temporary work agency employees, transferred employees, and seconded employees
  • Periodic training:
    • quarterly for employees working in high-risk environments
    • yearly for everyone else

Situations when extraordinary training is conducted:

  • Occupational accidents/illnesses, fires, industrial accidents, or natural disasters
  • Gross negligence and infringement on health and safety rules
  • By order of supervisory authority or administrative body
  • To employees who have been absent for more than 45 days, upon returning to the workplace
  • If the employer deems it necessary when doing renovation and construction with the participation of employees; when projects require special health and safety training
  • Change in work processes (e.g., new machinery and production methods)

Training should be done by either the direct supervisors in the company or qualified specialists.

All documentation regarding health and safety at work is kept on record for a minimum of five years.

Employers who fail to comply with health and safety regulations are fined in the range of HUF 50,000 (around EUR 123) to HUF 10,000,000 (around EUR 24,640).

Non-Mandatory Employee Benefits in Hungary

Company’s social and other benefits

The employer funds social, welfare, and cultural services to benefit employees and their families.

The funding can be used for the following, which is decided at the general meeting:

  • Transport to the workplace, provided by either the employer or the contracted passenger carrier
  • Supply of work clothing and uniforms
  • Organizing meal time through the establishment of canteens, buffets, etc.
  • Establishing holiday resorts
  • Other social or cultural benefits such as library cards, computer clubs, etc.

Additional days off

Some companies give their employees three–seven additional paid days off (which can be conditional on the length of service with the same employer).

Supplementary health insurance

Many employers offer their employees additional health insurance and access to medical facilities and specialist examinations.

Supplementary life insurance

Some companies offer life insurance plans to their employees.

Cash bonus

Companies commonly use cash bonuses to encourage employees.

Flexibility

Some companies offer flexible working hours. Now, it’s common for many tech/IT/outsourcing companies to offer a home office option.

Telephone costs

Some companies reimburse telephone costs and/or offer mobile phones for their employees.

Hardware

Depending on the type of employer, employees may be provided with company hardware, such as a laptop, computers, and accessories.

Wellness allowance

Multisports cards are a very common benefit for employees.

Meals

Meals and drinks can be offered at the cost of the employer.

Referral program

Referral programs are a common way to encourage employees by means of giving out cash bonuses.

Stock Options

Hungary has no specific legal regulations for employee stock options; therefore, the general rules of the Civil Code are applicable. However, some companies offer shares (call option regarding shares), and the terms and conditions for such stock options are usually regulated in a stock option agreement.

If the stock option program does not result in the issuance of actual shares (i.e., phantom share program), a cash settlement is carried out, with no regulatory filing required in respect of the award. Conversely, regulatory filing may be required if actual shares are issued in a stock option program.

Taxation-related aspect of stock options should be evaluated on a case-by-case basis due to the lack of a specific regulation.

This page was last updated on 
22 September, 2022,
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