Employer of Record in Hungary

Brain Source International helps you save time and reduce costs by allowing you to hire in Hungary without establishing an entity. Our Employer of Record (EOR) solution handles onboarding, payroll, immigration, and benefits so you can hire your employees faster and grow your business compliantly.

What is an Employer of Record in Hungary?

An Employer of Record (EOR) in Hungary is a strategic partner that acts as the legal employer for your employees residing in Hungary. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Hungary without the need to establish a local entity or navigate complex labor laws.

Employer of Record (EOR) in Hungary: Key Aspects of the Hungarian Labour Code

General Information

• Currency: Forint (HUF)
• Payroll Frequency: Monthly
• Capital: Budapest
• Fiscal Year: 1 January – 31 December

Minimum Wage

General: The monthly minimum wage in Hungary is 266,800 HUF for unskilled labor and 326,000 HUF for skilled labor, which includes jobs requiring secondary education or professional qualifications. Minimum wages may also be determined through Collective Bargaining Agreements.

Payroll

Payroll Cycle: In Hungary, payroll is processed on a monthly basis. Work performed between the first and last day of the month is generally paid on the last day of the month but must be completed by the 10th of the following month.

13th Salary

In Hungary, a 13th-month salary is not required by law. However, employers may choose to provide bonuses at their discretion.

Taxation in Hungary

Would you like to know the approximate cost of employment in Hungary?

Working Hours

General: In Hungary, the standard working week is 40 hours, usually consisting of 8 hours per day over a five-day workweek.

Overtime: All work beyond the standard working hours is considered overtime and is regulated by employment contracts or collective agreements. Employees may work a maximum of 72 hours per week, including overtime or holiday work. Different maximum working hours apply for minors.

Overtime exceeding 40 hours per week is paid at 150% of the employee’s basic salary rate. Overtime performed on weekends and public holidays is paid at 200% of the employee’s basic salary rate.

Leave

Annual Leave (Vacation):

All employees are entitled to 20 days of paid vacation per year, which increases with age, reaching up to 30 days for employees over 45 years old.

Additionally, employees with children under 16 years old are eligible for extra vacation time:

• Two working days for one child
• Four working days for two children
• Seven working days for three children

If a child has a disability, the additional vacation days are increased by two working days. Both parents can request this extra vacation time.

Fathers are entitled to five extra vacation days upon the birth of their child, or seven days for twins, to be used within the two months following the birth.

Public Holidays

Public holidays that fall on the weekend are usually lost.

Sick Days

Employees are entitled to 15 days of paid sick leave, during which they receive 70% of their salary based on the average salary over the previous six months.

If the sickness extends beyond the 15 days, the employee can take additional leave for up to one year (or indefinitely in the case of a work-related accident). For this extended sick leave, the payment is divided with one-third covered by the employer and two-thirds by the National Health Insurance Fund.

Maternity Leave

Women are entitled to 24 weeks of maternity leave but can extend their leave up to three years while receiving maternity benefits.

For the first six months, mothers receive the Pregnancy and Confinement Benefit (CSED) at 70% of their salary. For the subsequent eighteen months, until the child’s second birthday, they are eligible for the Child Care Fee (Gyermekgondozási díj – GYED) at 70% of their salary, up to twice the minimum wage.

Additionally, the Child Home Care Allowance (Gyermekgondozási segély – GYES) is available for parents or grandparents caring for a child up to three years old. These benefits are provided by the National Health Insurance Fund of Hungary (NEAK).

A family allowance is also available, with the amount depending on the number of dependents and beneficiary dependents. Since 2023, the allowance has been increased for families with seriously disabled or permanently ill dependents.

Paternity Leave

A father is entitled to 10 days of paid paternity leave or 12 days for multiple/complicated births taken within the two months following birth.

Parental Leave

Fathers and mothers are each entitled to 44 working days of parental leave until their child reaches 3 years of age, provided that the employee has completed at least one continuous year of employment.

Other Leave

There is no statutory leave in Hungary beyond what is outlined, but many companies offer employees two days of leave in the event of a family member’s death.