Hungary EOR & PEO

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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 EOR is the quickest and most cost-effective way to enter the Hungarian market. Note, a Hungary Employer of Record is also known as a Hungary Professional Employer Organization (PEO).

Facts & Stats

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

Indefinite

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.

Holiday Schedule in Hungary [2024]

Hungary has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan, 2024	New Year’s Day
15 Mar, 2024	1848 Revolution Memorial Day
29 Mar, 2024	Good Friday
1 Apr, 2024	Easter Monday
1 May, 2024	Labor Day / May Day
20 May, 2024	Whit Monday
20 Aug, 2024	Hungary National Day
23 Oct, 2024	1956 Revolution Memorial Day
1 Nov, 2024	All Saints’ Day
25 Dec, 2024	Christmas Day
26 Dec, 2024	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 HUF 266,800 per month as of 2023.

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.

Hungary Employer Of Record Peo

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Hire in Hungary

Employment Laws

Working hours in Hungary

Compensation & Benefits

Frequently asked questions

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

Frequently asked questions

What is the difference between an Hungary PEO and an Hungary EOR?

Generally speaking, the terms “Hungary PEO” and “Hungary EOR” are used interchangeably.

Can an EOR in Hungary hire both local and foreign nationals to work in Hungary ?

An EOR 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.

How long does Horizons' Hungary EOR service take to hire an employee?

In most cases, Horizons’ Australia EOR 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.

Is it possible to get a work visa in Hungary ?

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.

Hungary EOR & PEO

Start hiring in Hungary

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Hungary

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stay compliant with Hungary labor laws

Employment Laws

Employment contracts in Hungary

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Hungary

Hungary vacation leave

Hungary sick leave

Parental leave in Hungary

Terminations and severance in Hungary

Taxation in Hungary

Health coverage in Hungary

hassle-free Hungary compensation & benefits

Compensation & Benefits

Compensation laws in Hungary

Benefit management in Hungary

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