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Talent Wiki – Hungary

Your quick guide on talent and labor compliance norms in Hungary

Capital

Budapest

Currency

Hungarian Forint (HUF)

Languages

Hungarian

Payroll Frequency

Monthly

GDP per Capita

$16,288.99

Employer Tax

13%

Talent Overview

Hungary is a high-income mixed economy that generates a lot of investment and nurtures a skilled population. The country is one of the largest electronics providers in Central and Eastern Europe and paves the way for the industry’s innovation and fiscal growth.

Major economic hubs:

Budapest, Debrecen, Szeged

Skills in demand:

Project manager, Machine operator, Sales representative

Map 50

Local Universities

The top local universities in Hungary are as follows:

Uni1 75

Eötvös Loránd Tudományegyetem

Ranking

Local: 1

World: 389

Uni2 63

Budapesti Muszaki és Gazdaságtudományi Egyetem

Ranking

Local: 2

World: 490

Uni3 54

Közép-Európai Egyetem

Ranking

Local: 3

World: 520

Uni4 52

Szegedi Tudományegyetem

Ranking

Local: 4

World: 639

Uni5 48

Debreceni Egyetem

Ranking

Local: 5

World: 927

Salary Data

Some common jobs in Hungary with average monthly salary are:

Job Title Average Monthly Salary (in HUF) Average Monthly Salary (in USD)
Financial Manager 957,000 HUF 2235.92 USD
General Manager 823,000 HUF 1922.84 USD
Business Developer Manager 700,000 HUF 1635.47 USD
Financial Analyst 609,000 HUF 1422.86 USD
Business Analyst 668,000 HUF 1560.70 USD
Project Manager 524,000 HUF 1224.26 USD
Talentsource3

Talent Sourcing Tips

Top Local Job Boards

Profession, CVonline, Jobline

Number of LinkedIn users

1,326,000

Multiplier Recruitment Partner

iXceed

Employing in Hungary

The Hungarian Labor Code compiles the rules and regulations that every employer in the country must follow. Deviating from the mandated rules can lead to hefty fines and punishments. This section discusses the onboarding regulations that every employer must know before hiring in Hungary.

Employee Contract

As per the Hungarian Labor Code, the employment contracts must be written in local language and include essential information, such as compensation, benefits, working hours and responsibilities.

Probation Period

The probation period in Hungary is three months.

Public and Provincial Holidays 2023

Date Name Type
1 January New Year’s Day National holiday
15 March 1848 Revolution Memorial Day National holiday
7 April Good Friday National holiday
10 April Easter Monday National holiday
1 May Labor Day / May Day National holiday
29 May Whit Monday National holiday
20 August Hungary National Day National holiday
23 October 1956 Revolution Memorial Day National holiday
1 November All Saints’ Day National holiday
25 December Christmas Day National holiday
26 December Second Day of Christmas National holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual leaves 20 days Yes
Sick leaves 15 days Yes
Maternity leaves 24 weeks Yes

Payroll

Payroll 1

Payroll Cycle

The payroll cycle in Hungary is monthly.

Payroll 2

Minimum Wage

The minimum wage in Hungary is  HUF 232,000.

Payroll 3

Overtime Pay

The working hours in Hungary are capped at 8 hours per day and 40 hours per week. If an employee dedicates any additional time to office hours, they are liable to receive overtime pay at 150% of their regular salary. Overtime hours during public holidays and weekends must be compensated at a rate of 200% of the employee’s regular pay.

Bonus

13th Month Pay

Hungary does not mandate 13th-month pay. However, employers can offer ad hoc or performance bonus to their employees.

Employee Benefits

  • Paid time off
  • Pension
  • Parental leaves
  • Eye exams

Taxes

Employer Payroll Tax

Type of Contribution Contribution
Social contribution tax 13%

Employee Payroll Tax

Type of Contribution Contribution
Social contribution tax 18.5%

Employee Income Tax

The personal income tax in Hungary is 15% of the taxable gross income of an employee.

VAT

The standard rate of Value Added Tax in Hungary is 27%. Companies dealing in dairy, cereals, flour and starch products are levied VAT at a reduced rate of 18%. A further reduced VAT of 5% is applicable for new residential property, a few pharmaceutical products, literature books, audiobooks, newspapers, heating services, live performance activities, accommodation services, dining services, internet access, and certain animal products.

Offboarding & Termination

An employee can be terminated on the basis of mutual consent, with or without notice. The termination letter must specify the reason behind the step. The employer must pay the departing employee their wages and other payments by the third day from termination, with the relevant statements and certificates.

The notice period in Hungary is 30 days.

The severance pay for an employee is calculated as per the given table:

Tenure of employment Severance pay
3 years 1 month’s pay
5 years 2 month’s pay
10 years 3 month’s pay
15 years 4 month’s pay
20 years 5 month’s pay
25 years 6 month’s pay

Visa and Immigration

EU citizens can work freely in Hungary with only a registration card and a registered address. However, non-EU citizens must apply for both permits; residence and work permit to stay and work in the country.
Before starting their work, the employee must be integrated in the Hungarian taxation and social security system by the employer.

Visa 70
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Payroll

Minimum Wage

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Visa & Immigration