Employer of Record in Hungary: Hire, Manage, and Pay Talent Seamlessly

Agreements in Hungary

• Indefinite or open-ended contract -A contract with no fixed end date is called an indefinite contract. It is mutually agreed upon and can be terminated by both parties. An employee can terminate the contract without stating a specific reason. The employer has to say a valid reason for termination. This type of contract hires permanent employees and full-time workers.
• Definite or fixed-term contract - A contract that ends on a fixed date is called a fixed-term contract. It is agreed upon for specific types of work and a fixed time. The term of a definite contract must not exceed 5 years in Hungary. It can be renewed for another 6 months on the mutual agreement of both parties. A new contract can be made within 6 months of the ending of the previous contract.

Visa in Hungary

• Short-term visa - It is known as the Hungary Schengen visa. It is issued for a shorter duration of up to 90 days. This type of visa is mainly given for tourism, medical care, business invites, and other short stays.
• Long-term visa -It is also known as a Hungary D visa. It is granted for stays that are longer than 90 days. A residential visa is issued for 1 year. It is mainly for students, foreign workers, and others who intend to stay for a year.

Minimum Wage in Hungary

• The guaranteed minimum wage for professional workers is HUF 260,000.
• The minimum wage in Hungary for non-professionals or other types of workers is around HUF 200,000.

Annual Bonus in Hungary

Health Benefits in Hungary

• Every employee is entitled to health benefits in Hungary. The employer is responsible for providing healthy working conditions.
• The employee must declare health conditions

Working Hours and Overtime in Hungary

• Work hours:The daily work hours in Hungary are fixed at 8 hours per day. It makes 40 hours of regular work per week. The standard working week is from Monday to Friday.
• Break: An employee is entitled to 20 minutes of unpaid break for 6 hours of work. If the work time exceeds 6 hours, the employee must get 25 minutes break. Every employee is given 2 days of continuous break per week.
• Overtime: The overtime in Hungary must not exceed 4 hours per day. The total overtime must be lower than 8 hours per week. The employer is obliged to pay 50% of the salary for overtime on weekdays. 100% salary is paid for overtime on weekends and holidays.

Leaves in Hungary

Social Security in Hungary

• An employer contributes 13% to the social security fund. This tax is calculated on a flat-tax rate system.
• An employee has to contribute 18.5% of the salary to the social security fund. It is split into three different security funds.

Taxes for Employers in Hungary

• Social Tax or Social Security - 13%

Probation in Hungary

Termination in Hungary

• The labor laws protect employees from unreasonable terminations in Hungary.
• An employer must provide a valid reason for the termination of an employee.
• An employer can not terminate any employee on sick leave, maternity or paternity leave, or any other valid absence.
• The employer must provide written notice 30 days before termination. The valid reason for termination must be in the notice.

Severance Pay in Hungary

Employees or Contractors in Hungary

• A person who works for a company and gets paid is called an employee.
• An organization or company that hires employees is the employer.
• There are two types of recognized employment in Hungary - employees and self-employed.
• A penalty is imposed if an employer is found guilty of an employee's misclassification.
• The employer has to pay all legal benefits to such a misclassified employee.
• The employer has to pay all taxes and other contributions on behalf of the employee.