Understanding Employment Norms in Hungary: A Comprehensive Guide
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Hiring in Hungary? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Hungary.

Employment Norms in Hungary

Hungary is a central European country with the highest literacy rate. It is geographically a landlocked country. International Labor Laws along with Hungarian labor law oversee the employment norms. International and national labor laws ensure that employees are not ill-treated in the country. It protects them from any kind of discrimination. The constitution of Hungary is the main source of national labor laws. It offers privileges and protections to employees.

General Information:

  • Hungary's currency is Hungarian Forint (HUF).
  • Budapest is the capital of Hungary.
  • Hungarian is the official language of Hungary. Documentation can be in Hungarian. A translation of documents into other languages and vice-versa can be provided.
  • As of 2022, the GDP of Hungary was reported to be 343 billion USD.
The labor laws in Hungary regulate the terms and conditions of employment. It determines working hours, wages, taxes, and other employee benefits. The labor laws are strict on the misclassification of an employee as a contractor.
Hungary map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working Hours and Overtime
  • Leaves
  • Social Security
  • Taxes for Employers
  • Taxes for Employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words


The employment agreements in Hungary are just like any other country. There are two types of employment agreements:
  • 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.
Onboarding Process

Onboarding Process

The onboarding process in Hungary is as follows:
  • The company will collaborate with its HR team if there is a job vacancy. A job description is prepared, which has details about the job.
  • Once the appropriate description is prepared, it is uploaded on the company's official sites and other platforms.
  • The employer may choose to publish the vacancy in local newspapers and magazines.
  • Candidates submit their applications by verifying their eligibility criteria.
  • The HR team shortlists candidates on the given criteria and rounds of assessments.
  • Final shortlisted candidates can negotiate with the employer regarding the job. Once both parties reach an agreement, the candidate is hired.


Hungary has mainly two types of visas:
  • 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.

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Minimum Wage

Minimum Wage

The labor laws in Hungary have a basic minimum wage and a guaranteed minimum wage. The basic minimum wage is given to all employees for any type of work. The guaranteed minimum wage is given to permanent employees.
  • 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.
Payroll Cycle

Payroll Cycle

The payroll cycle in Hungary is paid monthly. There is no legal provision for daily and weekly payroll. However, weekly and bi-weekly payments can be made. It depends on the mutual agreement between the employer and the employee.
Annual Bonus

Annual Bonus

There is no legal provision for an annual bonus in Hungary. However, some employers may give a 13th salary as an annual bonus.
Health Benefits

Health Benefits

  • 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

Working Hours and Overtime

  • 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.


Sick Leave

  • Every employee is entitled to 15 days of paid sick leave in Hungary. Sick leave is paid differently by every employer. The average payment is around 70% of the regular salary. Sick leaves after the initial 15 days are paid by the National Treasury, whereas it is the employer's responsibility to compensate 30% of the sick leave payment to the National Treasury. Sick leaves taken due to high-risk illness is paid by the National Treasury since day one.

Maternity leaves

  • A pregnant female employee who has worked for 365 days in two years is entitled to maternity leave in Hungary. The labor laws grant 24 weeks of maternity leave to such employees.
  • 4 weeks of leave must be taken before the birth of the child. The remaining 20 weeks are granted after childbirth.
  • National Treasury is responsible to pay for maternity leave.

Paternity leaves

  • A male employee gets 10 days of paternity leave in Hungary.
  • This leave must be taken within 2 months of childbirth.
  • An average of 70% salary is paid to the male employee.

Annual leaves

  • An employee is entitled to 20 to 30 days of paid annual leave in Hungary, based on their age.

Public Holidays (for the Calendar year 2023)

  • New Year's Day (1st January)
  • Revolution Day - March 15
  • Good Friday - April 7
  • Easter Monday - April 10
  • Labor Day - May 1
  • Whit Monday - May 29
  • State Foundation Day - August 20
  • Republic Day - October 23
  • All Saints' Day - November 1
  • Christmas Day - December 25
  • Second Day of Christmas - December 26

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Social Security

Social Security

Social security in Hungary is covered under labor laws.
  • 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

Taxes for Employers

Employers have to pay taxes in Hungary like any other country. These taxes include:
  • Social Tax or Social Security - 13%

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Taxes for Employees

Taxes for Employees

Taxes are imposed on employees in Hungary on a flat-rate tax system. These are the taxes an employee has to pay:
  • Income tax - 15%.
  • Pension Contribution - 10%
  • Health Insurance - 7%
  • Unemployment Contribution - 1.5%


The probationary period in Hungary must not exceed 3 months. The labor laws in Hungary are strict about the probationary period. After completing the probation period, an employee is given a full-time employee status and protected by Hungarian labor law. It is still applicable, even if the probationary period is not specified in the employee's contract.

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  • 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

Severance Pay

In case an employee is terminated, the employer must give severance pay. The severance pay depends on the tenure and type of work. An employee may get a salary ranging from 1 month to 9 months as severance pay.
Employees or Contractors

Employees or Contractors

  • 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.
Final Words

Final Words

Hungary is a central European country. Its economy is highly dependent on agriculture, industries, and tourism. The country has a robust educational system with a literacy rate of 99%. The highly educated people and liberal labor laws are favorable for expanding a business in Hungary.

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