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hire in Hungary

Hungary PEO &
Employer of Record

SALARY PAYMENT IN Hungarian Forint (HUF, Ft)

CONTRACT LANGUAGES Hungarian / English

PAYROLL TAX 13.00%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Hire and pay talents
with Horizons in
180+ countries

SIMPLE, COMPLIANT HIRING WITH HORIZONS PEO

Hire in Hungary

Horizons provides compliance solutions to ensure your business in Hungary operates in line with Hungarian labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Hungary in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an Hungary Employer of Record, absorb all local employer liabilities. Partnering with our Hungary PEO is the quickest and most cost-effective way to enter the Hungarian market. 

Facts & Stats

PEO Platform

Hire in Hungary, and pay employees through our platform or app.

PEO Cost

Our Hungary PEO solution is the most affordable on the market.

Time-to-hire

Fast onboarding in Hungary, hire in as little as 24 hours.

Contracts

We draft labor contracts compliant with Hungarian labor law.

Local Benefits

We administer all mandatory benefits and contributions in Hungary.

180+ Countries

It doesn’t stop with Hungary — we are an international PEO

stay compliant with Hungary labor laws

Employment Laws

Employment contracts in Hungary

Employers in Hungary are required to provide their employees with a written contract of employment. Most contracts are, and will be expected to be, indefinite-term in duration.

Every contract should be written in the local language of Hungarian, use the local currency of the Hungarian forint, and include all relevant employment terms such as salary/wage, vacation leave allowance, and so on.

Fixed-term
Probationary period0 – 3 months
Termination notice period30 days standard, 90 days maximum
Severance

1 month minimum

1 – 6 months’ salary if terminated due to operational reasons

Indefinite
Probationary period0 – 3 months
Termination notice period30 days standard, 90 days maximum
Severance

1 month minimum

1 – 6 months’ salary if terminated due to operational reasons

Working hours in Hungary

A normal working week for Hungarian employees is 40 hours, with eight hours per day for five days. Any time worked above this should be paid at an overtime rate of at least 150% of normal salary, and workers cannot work more than 250 hours of overtime in a year.

Hire compliantly in Hungary without a local entity.

Quick, compliant hiring in 24 hours—no subsidiary required.

Public holidays in Hungary

Hungary has a range of national public holidays that are celebrated annually. In 2023 these holidays are:
Date Holiday name
1 Jan, 2023 New Year’s Day
15 Mar, 2023 1848 Revolution Memorial Day
7 Apr, 2023 Good Friday
10 Apr, 2023 Easter Monday
1 May, 2023 Labor Day / May Day
29 May, 2023 Whit Monday
20 Aug, 2023 Hungary National Day
23 Oct, 2023 1956 Revolution Memorial Day
1 Nov, 2023 All Saints’ Day
25 Dec, 2023 Christmas Day
26 Dec, 2023 Second Day of Christmas

Hungary vacation leave

Workers in Hungary are entitled to a minimum of 20 days of paid vacation leave per year. This increased with the age of the employee:

  • Under the age of 25 = 20 days of vacation leave
  • 25 years old = 21 days
  • 25-30 = One extra day every three years
  • 31-45 = One extra day every two years
  • 45+ = 30 days

Hungary sick leave

Any employee registered with the country’s social security program can take at least 15 days of sick leave. During this period of absence, they can receive 70% of normal pay, covered by their employer. Beyond the initial 15-day period, the compensation is reduced to around 50-60% (the amount varies depending on specific employment terms and length of service). The employer must cover one-third of this and the government covers the remaining amount.

Parental leave in Hungary

Female workers in Hungary are entitled to 24 weeks of paid maternity leave at 70% of average salary. Male employees are entitled to five days of paternity leave, which must be used in the two months following the child’s birth.

Terminations and severance in Hungary

There is no legally mandated limit to probation periods in Hungary, but periods are almost always kept at a reasonable length i.e. a few months at maximum.

Employees must be provided with a minimum of 30 days of notice upon termination. This minimum period is increased depending on the length of service:

  • Three years of employment = Five days extra
  • Five years of employment = 15 days extra
  • Eight years of employment = 20 days extra
  • Ten years of employment = 25 days extra
  • 15 years of employment = 30 days extra
  • 18 years of employment = 40 days extra
  • 20 years of employment = 60 days extra

Employees are also entitled to severance pay if they are terminated in certain circumstances, ranging from one month to six months depending on the length of service, and an added three months if the employee is within five years of retirement.

Taxation in Hungary

Employers in Hungary must contribute around 27% of salaries toward the mandatory social security fund. Employees need to contribute 9.5% and 7.5% for social security and health insurance respectively. 

The income tax rate in Hungary is 15%.

Health coverage in Hungary

Hungary has national healthcare, so employees are covered, so employers are not expected to provide private health insurance as a benefit.

hassle-free Hungary compensation & benefits

Compensation & Benefits

Compensation laws in Hungary

The minimum wage in Hungary is €487.10 per month as of mid-2020.

Minimum Wage Country Comparison Chart (Per month in USD)
Switzerland (Geneva) $4,000
Italy $2,255
Australia $1996
Algeria $156
Uzbekistan $22
Benefit management in Hungary

Employees in Hungary often expect benefits packages as part of their employment agreements, so you may need to set up a benefits management system when hiring in the country. But setting up and managing a benefits system in Hungary can be complicated, particularly if you are unfamiliar with the country’s unique regulations and procedures.

Horizons can help to significantly simplify this step of your Hungary expansion by providing benefit management outsourcing. Our team can advise you and handle the setup of your benefits scheme, enabling you to focus on expanding your organization in Hungary.

Hire in Hungary in 24h
without a local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

An Australia PEO and an Australia EOR are two types of companies which specialize in providing human resources services to businesses in Australia.

The main difference between an Australia PEO and an Australia EOR is in the scope of their services.

Australia PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an Australia PEO is essentially outsourcing your HR duties in Australia.

Australia EORs actually take over as the legal employer of your employees based abroad. Australia EORs become responsible for labor compliance for your employees in Australia.

At Horizons, we offer both PEO and EOR services in Australia. Get in touch now and let us know what service you are seeking.

A PEO in Australia can feasibly hire both local and foreign nationals to work in Australia.

However, the ability of Horizons to sponsor your foreign national employee in Australia may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Australia PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Australia.

It is possible to get a work visa in Australia. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Australia are limited, however—get started today to secure your employees’ visa spot.