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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
Hungary is a top choice for outsourcing IT services. There are about 150,000 IT professionals available, and roughly 6,000 graduates enter the country's IT workforce annually.
Hungary's location in Europe gives employers an edge in leveraging the time zone and accessing highly skilled workers at a reasonable cost due to the country's lower wage rates.
Hungary boasts a literacy rate of over 99% and a strong education system, positioning it among the world's most educated nations.
Hungarians are often proficient in multiple languages, with English being commonly spoken. This is advantageous for roles requiring international communication and collaboration.
When hiring in Hungary, an employment contract must be created at the end of the employment agreement. This written document should contain, at a minimum, the following details:
In Hungary, the standard probation period is a maximum of three months. If the agreed probation period is shorter than three months, it can be extended once, but the total probation period cannot exceed three months.
In Hungary, the regular workweek spans 40 hours, usually distributed as 8 hours per day across a five-day schedule. Employees in Hungary are entitled to two rest days in a given week. If the scheduled daily working time exceeds 6 hours the employee shall be entitled to a minimum 20-minute break from work.
Overtime in Hungary is regulated by employment contracts or collective agreements. If an employee is asked to work beyond the regular hours or on weekends/public holidays, the weekly limit is 48 hours or 72 hours if the employee is required to be on call. The maximum limit on overtime is 250 hours per calendar year. Overtime work beyond the standard 40-hour week should be paid at 150% of the basic salary rate. During weekends and public holidays, overtime is compensated at 200% of the basic salary rate.
The minimum wage in Hungary stands at 1,534 HUF per hour / 266,800 HUF per month for unskilled labour and 1,874 HUF per hour/ 326,000 HUF per month for skilled labour (jobs requiring secondary education or professional qualifications).
The provision of a 13th-month salary is not legally required in Hungary, employers have the option to provide bonuses at their own discretion.
Hungary applies a 15% flat rate for individual income tax. For employees under 25, a reduction to the taxable amount is applicable based on their earnings within the consolidated tax base, capped at a maximum monthly discount of 499,952 HUF.
The pension system in Hungary encompasses both state and private pension schemes. The state pension system relies on contributions from employees, employers, and the government. The retirement age typically stands at 62 for both genders, although it can vary based on factors like the number of years of pension contributions. It's essential to recognize that pension systems undergo adjustments over time, subject to factors such as government policies and economic conditions.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Hungary tailored to your needs.
In Hungary, either party can terminate employment by providing written notice and - if initiated by the employer - reasoning must also be provided. The notice becomes effective upon communication to the concerned party. Employment may be terminated for the following reasons:
In Hungary, the standard notice period is 30 days. In cases where the employer initiates the termination of employment, the initial 30-day notice period must be extended by a specific number of days, determined by the employee's years of service:
After three years of service, employees get severance pay based on service length and age, ranging from 1-6 months’ salary. Fixed-term contracts don’t require severance pay.
There are 11 officially recognized national holidays in Hungary listed below:
Hungary operates various social security systems aimed at supporting its citizens. Social security is funded through employer and employee contributions. The benefits include:
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