Your Guide to Hiring Employees and
Contractors in Hungary
Capital city
Budapest
Currency
Hungarian forint (Ft, HUF)
Language(s)
Hungarian
Ease of doing business
Very easy
Payroll frequency
Monthly
Employer taxes
13.00%
Payroll
Monthly Payroll
Salaries must be paid on a monthly basis.
Minimum Wage Requirements:
Hungary differentiates between the minimum wage and the guaranteed minimum wage.
The guaranteed minimum wage only applies to full-time employees hired for jobs that require at least a secondary school qualification or secondary vocational qualification
The guaranteed minimum wage is 260,000 HUF gross/month.
Individual Income Tax:
The individual income tax in Hungary is 15%. Income tax is calculated using a flat rate.
Employer Cost:
The employer cost is generally estimated at 13.0% of the employee salary.
Social Contribution Tax – 13.0%
Working Hours
Work Week
Monday to Friday.
Overtime Pay & Maximum Hours
Overtime payment is mandatory. Employees can work a maximum of 4 hours of overtime daily and 8 hours of overtime weekly.
Employment Termination
Employers in Hungary are usually required to provide a reason (in writing) to every employee being terminated.
Notice period:
To terminate an employee in Hungary, the employer must provide advance notice of between 30-90 days.
Probation periods:
In Hungary, the maximum probation period is three months. After the probationary period ends, the employee is considered a full employee and entitled to all the protections of Hungarian labor law.