What are the benefits of Working in Hungary?
About the country
- Geographically, Hungary borders Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, and Slovenia, among other nations. The Great Hungarian Plain, sloping hills, rivers (including the Danube), and Lake Balaton, the largest lake in Central Europe, are all part of the diverse landscape.
- Budapest, Hungary's largest city, is located on the banks of the Danube River and serves as the country's capital. Budapest's stunning architecture, thermal spas, exciting nightlife, and cultural attractions are well known.
- Language: Most of the population speaks Hungarian, the official language. German and English are also widely spoken, especially among younger people and in tourist areas.
- Culture: Hungary has a diverse culture because of its history and proximity to other nations. Goulash, stews made with paprika, and mouthwatering pastries are just a few examples of traditional Hungarian fare. In addition, the government has a long history of lively festivals, folk dance, and music.
- History: The Celtic, Roman, and Ottoman empires, as well as the Habsburg era and the Soviet era, all impacted Hungary's complicated past. Over the centuries, the nation underwent significant territorial and political changes.
- Hungary's market economy is diversified and advanced. Manufacturing, the auto industry, agriculture, pharmaceuticals, information technology, and tourism are important sectors.
- Hungary is a popular tourist destination thanks to its historical sites, picturesque scenery, and thermal baths. The Buda Castle, Hungarian Parliament Building, and Chain Bridge are some of Budapest's most well-known landmarks. In addition, the nation has gorgeous national parks, wine regions, and UNESCO World Heritage Sites.
- Hungary's transportation network is highly integrated. Buses, trams, and a metro system are all part of Budapest's effective public transportation system. The nation has an extensive rail system connecting its major cities and connections to other countries. The primary air entry point is Budapest's Ferenc Liszt International Airport.
Hungary
|
Currency |
Forint (HUF) |
|
Employer Taxes |
13.00% |
|
Payroll Frequency |
Monthly |
|
Employee Costs |
18.5% |
|
Capital |
Budapest |
|
Date Format |
yyyy.mm.dd. |
|
Fiscal Year |
1 January - 31 December |
Contributions
The details given are personalised and are subject to change. It would be best to refer to official sources or seek expert advice for the latest and precise information.
- Employers and employees in Hungary are required to make various contributions. Here are some significant contributions made by Hungary:
- Contributions to Social Security: Employers are obligated to make payments to social security programs on behalf of their employees. The rate of social security contributions is 15.5% of the employee's gross pay.
- Contributions to Health Insurance: Both employers and employees make financial contributions to the health insurance system. Based on the employee's gross income, the health insurance contribution rates are 7.0% for employers and 4.0% for employees.
- Pension contributions: On behalf of their employees, employers must contribute to the state pension system. The pension contribution rate is 20% of the employee's gross income.
- Contribution to the Training Fund: Employers must donate to the Training Fund, which supports employee growth and development. The current contribution percentage to the training fund is 1.5% of the employee's gross pay.
Employer
Employer Payroll Contributions
| 13.00% | Total Employment Cost |
| 13.00% | Social Contribution Tax |
Employee
Employee Payroll Contributions
| 18.50% | Total Employee Cost |
| 7.00% | Health Care Contribution |
| 10.00% | Pension Fund |
| 1.50% | Unemployment Fund |
Employee
Employee Income Tax
| 15.00% | Flat rate
*employees under 25 are entitled to a reduction to the taxable amount based on income included in the consolidated tax base. The maximum monthly amount of the discount in 2023 is 499,952.00 HUF. |
Employer Taxes
| Tax Type | Rate |
|---|---|
| Social Security Contribution | 15.5% |
| Health Insurance Contribution | 7.0% |
| Pension Contribution | 20.0% |
| Training Fund Contribution | 1.5% |
So that you know, the rates provided are based on the information available and may be subject to change. It's always recommended to consult official sources or a tax professional for the most up-to-date and accurate information regarding employer taxes in Hungary.
Employee Taxes
| Tax Type | Rate |
|---|---|
| Social Security Contribution | 15.5% |
| Health Insurance Contribution | 4.0% |
| Pension Contribution | - |
| Training Fund Contribution | - |
So that you know, the rates provided are based on the information available and may be subject to change. It's always recommended to consult official sources or a tax professional for the most up-to-date and accurate information regarding employee taxes in Hungary.
Minimum Wage
| Category | Minimum Wage (HUF) |
|---|---|
| Unskilled Labor | 232,000 HUF |
| Skilled Labor | 296,000 HUF |
So that you know, the information provided is based on the last available data and may be subject to change. It's always recommended to consult official sources or labour authorities for the most up-to-date and accurate information regarding minimum wage rates in Hungary.
Payroll Period:
The typical payroll cycle in Hungary is one month. Employees are typically paid on the last day of the month for work completed between the first and final day of the month.
Deadline for Payment:
Employers must ensure that workers receive their pay by the 10th of the following month for work completed between the first and last day of the month by Hungarian labour laws. This indicates that, even though the payment is typically due on the previous day of the month, it must be made by the tenth of the following month to comply with the law.
13th Payscale:
The payment of a 13th-month salary is not required by law in Hungary. However, employers are free to give workers bonuses or other extra compensation if they so choose. This means that the employer's policies or collective bargaining agreements govern the payment of a 13th salary or any additional bonuses.
It's important to remember that different employers and industries may have other specific payroll practices. Please speak with your employer or HR department to get detailed information about payroll cycles, payment due dates, and any additional bonuses or benefits offered at your particular place of employment.
Working Times
The typical working week in Hungary is 40 hours, or 8 hours per day, for a five-day workweek (Monday through Friday).
Overtime:
Any work completed outside the regular working hours is regarded as overtime and is governed by the rules in the employment contract or collective agreements. There is a limit of 72 hours of work per week for employees who must work overtime or on holidays, and minors are subject to different rules.
The standard rate for overtime pay for workweeks with more than 40 hours is 150.00% of the employee's base pay. Weekend and holiday overtime is typically compensated at a rate equal to 200.00% of the employee's base pay.
It's crucial to remember that specific overtime laws and pay rates may change depending on individual employment contracts, collective bargaining agreements and rules particular to a given industry. It would be best if you spoke with your employer or HR to learn about the specific overtime rules and pay scales that apply to your place of employment.
Week at Work:
In Hungary, the typical work week is from Monday to Friday, and during this time, employees are expected to put in a set number of hours per day.
Paid Holidays:
Employees in Hungary are entitled to a certain number of paid vacation days each year. The standard allowance is 20 days of paid vacation per year. However, this entitlement rises with age, with employees over 45 eligible for a maximum of 30 days.
Parental Vacation Time Extension:
Employees who have minor children are entitled to additional vacation days. Based on the number of children, extra vacation days are allocated:
- two days of work for one child
- Four days of work for two kids
- seven days of work for three kids
The additional vacation days are increased by two working days if a child has special needs. Either parent may request this extra vacation time.
Parental Leave
Although they can extend their leave by up to three years and still receive maternity benefits, women have 24 weeks of maternity leave.
Mothers are entitled to Pregnancy and Confinement Benefit (CSED) for the first six months at a rate of seventy per cent of their salary. Mothers are entitled to a Child Care Fee (Gyermekgondozási dj - GYED) at a rate of seventy per cent of their salary, up to a maximum of double the minimum wage, for the subsequent eighteen months until the child turns two.
Parents or grandparents caring for children under three are also eligible for a benefit known as Child Home Care Allowance (Gyermekgondozási segély, or GYES). The National Health Insurance Fund of Hungary (NEAK) pays the benefits.
Anyone who qualifies may receive the family allowance, and the amount received depends on the number of dependents and beneficiary dependents. If one of the beneficiary's dependents is seriously ill or disabled, the allowance will increase starting in 2023.
Father's Day Leave
In the first two months after a child is born, a father is entitled to 10 days of paid paternity leave or 12 days for multiple or complicated births.
Maternity leave
Employees who have worked continuously for at least a year are eligible for 44 working days of parental leave until a child turns three.
Various Leave
Although there are no other statutory holidays in Hungary, many employers give their staff members two days off in case of a family member's passing.
Termination
Finalisation Procedure
The employer may terminate a fixed-term contract due to business, personal, or employee misconduct. It requires notice and a justification for the termination in writing. A warning must be given, and the employee can defend their actions if the reason is misconduct.
The employee must receive the final salary payment by the fifth working day following the termination of the employment relationship after the employment relationship has been terminated by notice.
Warning Period
The notice period in Hungary is 30 days. The 30-day notice period must be increased if the employer terminates the employment by a specific number of days based on the number of years of service:
- Five more days' notice is needed after three years of service.
- After three years of service, five additional days' notice is required.
- After five years of service, ten other days' notice is required.
- After eight years of service, fifteen other days' notice is required.
- After ten years of service, twenty other days' notice is required.
- After fifteen years of service, thirty other days' notice is required.
- After eighteen years of service, forty other days' notice is required.
- After twenty years of service, sixty other days' notice is required.
Termination Pay
Following three years of service, employees are eligible for severance pay. It is necessary and ranges from 1-6 months' salary depending on the worker's age and length of service.
When using a fixed-term contract, severance is not necessary.
Period of Probation
In Hungary, a probationary period can last up to three months. If the agreed-upon probationary period is shorter than three months, the parties may extend it once, but only by three months.
Common Advantages
General
Sports event single or season tickets, holiday gift cards, a meal allowance, a phone allowance, and a car allowance or reimbursement.
Visa
Visa categories
- Long-term residents of Hungary must have a Long Stay Visa (D), which serves as a pre-approved residency permit.
- Working Schengen Visa – This visa category is for temporary employment.
- Schengen Business Visa - For foreigners who are not EEA citizens and wish to enter the Schengen region temporarily. Both single and multiple entries are permitted with this visa. Holders are allowed to stay for 90 days within six months.
- Seasonal Employment Visa: This visa is available to foreign nationals who want to work in the fishing, farming, or animal care industries. This permits the candidate to work for a maximum of 180 days.
- EU Blue Card: Highly skilled non-EU workers who are residents of EU member countries may apply for this card provided they have a valid residence permit. To qualify for this card, the foreign national must demonstrate that they have been residing legally in a member state for 18 months.
A residence permit is good for three years in total. While a visa may be valid for one year, a work permit is only suitable for two years.
VAT
General
The standard rate of sales tax in Hungary is 27.00%.
Version History
April 10, 2022
The minimum wage in Hungary is now 200,000 HUF for unskilled labour and 260,000 HUF for skilled labour.
Tax brackets have been updated.
July 1, 2020
Employer social security: Social contribution tax dropped to 15.5%
February 1, 2021
Minimum wage: rose to 167,400 HUF (basic amount) and 219?000 HUF when the job requires secondary educational and vocational qualifications.
For the Employer
Are you looking to Hire? Let us help you find the perfect candidates!
Step 1: Fill out the employer's questionnaire. Please provide us with the necessary details about your job requirements and company. We'll use this information to customise our services for you. Fill in the form.
Step 2: Choose the best offer. Once we receive your completed questionnaire, we'll prepare a tailored proposal for recruitment, employee leasing, or outsourcing services.
Step 3: Welcome your new employee. We'll utilise our extensive network and resources to find the ideal candidate for your business. Please don't worry; we'll ensure favourable conditions for you and the employee.
Take advantage of exceptional talent for your company. Complete the employer's questionnaire today, and let us handle your hiring needs.
For Job Seeker Registration
If you are looking for Truck Drivers, such as our guest today, we would like you to fill out the application form on our website. After reviewing the details of the completed offer, a representative of AtoZ Serwis Plus will contact you and tell you about all the details. Fill in the form.
Would you like some advice? So that you know, the information I've included here is for you to review. You'll always need to consult with your legal and tax advisor(s) and follow their guidance. AtoZ Serwis Plus cannot assist with legal or tax matters. The information presented is not specific to any particular company or workforce nor reflects how AtoZ Serwis Plus products are distributed in any jurisdiction. Instead, it is general. AtoZ Serwis Plus makes no representations or warranties regarding this information's accuracy, completeness, or timeliness. It shall not be liable for any losses from using or relying on it. It is your responsibility to exercise caution when using this information.
