* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Hungarian Forint (Ft)


CET (GMT +1)

Employment Cost


Annual Leave

20 days

In-demand Specialties*
Project Management, Science And Research, It And Technology

The Ultimate Guide to Hiring Employees in Hungary

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Hungary

Employing in Hungary requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Hungary with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Hungary quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.


Fundamental Aspects of Employment in Hungary

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:

  • Identification of both parties (employer's personal details included)
  • Specific workplace(s)
  • Outline the job position, including duties and responsibilities
  • Clearly state the basic salary and any additional compensation or benefit

Probationary Period in Hungary

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.

Working hours in Hungary

In Hungary, the regular workweek spans 40 hours, usually distributed as 8 hours per day across a five-day schedule.

Overtime in Hungary

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 72 hours. 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.

Navigating Key Aspects of Payroll in Hungary

Hungary has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Hungary

1 January - 31 December is the 12-month accounting period that businesses in Hungary use for financial and tax reporting purposes.

Payroll Cycle in Hungary

The payroll cycle in Hungary is usually monthly, with employees being paid by the 10th of the month..
1,450 HUF p/h

Minimum Wage in Hungary

The minimum wage for employees in Hungary is typically 1,450 HUF per hour, amounting to ~232,000 HUF per month for a typical 40 hour work week.

Minimum wages and salaries in Hungary

The minimum wage in Hungary stands at 1,450 HUF for unskilled labour and 1,850 HUF for skilled labour.

Bonus Payments in Hungary

The provision of a 13th-month salary is not legally required in Hungary, employers have the option to provide bonuses at their own discretion.

Comprehensive Overview of Employment Taxes in Hungary

Understanding the tax obligations for both employers and employees is crucial when operating in Hungary's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Hungary.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 13.00% on top of the employee salary in Hungary.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Hungary, the typical estimation for employee payroll contributions cost is around 18.50%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

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.

Tax Rate Income Bracket

Pension in Hungary

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.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Hungary

When it comes to terminating employment in Hungary, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

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:

  • Redundancy from restructuring or staff reduction
  • Misconduct or unacceptable behavior
  • Poor work performance

Notice Period

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: five additional days’ notice is required
  • After five years of service: 15 additional days’ notice is required
  • After eight years of service: 20 additional days’ notice is required
  • After ten years of service: 25 additional days’ notice is required
  • After fifteen years of service: 30 additional days’ notice is required
  • After eighteen years of service: 40 additional days’ notice is required
  • After twenty years of service: 60 additional days’ notice is required
  • No notice is required whilst on probation.

Severance Pay

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.

  • After three years of service: five additional days’ notice is required
  • After five years of service: 15 additional days’ notice is required
  • After eight years of service: 20 additional days’ notice is required
  • After ten years of service: 25 additional days’ notice is required
  • After fifteen years of service: 30 additional days’ notice is required
  • After eighteen years of service: 40 additional days’ notice is required
  • After twenty years of service: 60 additional days’ notice is required

Annual Leave Entitlements and Company Policies in Hungary

The annual leave entitlement in Hungary is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Hungary

There are 11 officially recognized national holidays in Hungary listed below:

Holiday Date

Paid Time Off in Hungary

Maternity Leave in Hungary

Paternity Leave in Hungary

Sick Leave in Hungary

Bereavement Leave

Parental Leave In Hungary

Hungary's Benefits Built Into Playroll

Competitive benefits package in Hungary

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Hungary's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Hungary

Make your benefits package in Hungary a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Hungary

Playroll allows you to provide localized benefits for employees in Hungary within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Hungary create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Hungary

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Hungary.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!