Global coverage
Employer of Record Hungary
Hire staff and expand your business in Hungary with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Hungary designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Hungary. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Hungary takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Hungary
A Brief Guide to Hungary
Hungary, a Central European nation, is renowned for its rich history, diverse cultural heritage, and breathtaking architecture. With a thriving automotive manufacturing, pharmaceutical, information technology, and food processing sectors, Hungary boasts a market-oriented mixed economy. The country is governed by a parliamentary republic and is an active member of numerous international organizations.
Category | Information |
Location | Central Europe |
Capital | Budapest |
Official Language | Hungarian |
Area | 93,030 square kilometers |
Population | Approximately 9.7 million |
Currency | Hungarian Forint (HUF) |
Major Areas | Budapest, Debrecen, Szeged, Pécs |
GDP (2021) | $168.6 billion USD |
Major Industries | Automotive, pharmaceuticals, IT, food processing, renewable energy |
Business Culture
Business Culture in Hungary
In Hungary, business culture values formality, professionalism, and a respect for hierarchy. Promptness, modest attire, and straightforward communication are appreciated. Decision-making typically falls to senior management, and personal relationships and trust are vital in business dealings.
Hungarians respect expertise and well-prepared individuals for meetings. Observance of proper business etiquette, such as exchanging business cards and using formal titles, is expected. To succeed in Hungarian business culture, one should demonstrate adaptability, respect, and relationship-building skills.
Payroll and Taxes
Payroll and Taxes in Hungary
There is no statutory requirement to pay a 13/14th month in Hungary.
Employee Taxation
Income tax rates in Hungary are flat:
| Taxable Income | Rate (%) |
All Income | 18.5% |
Employer Taxation
Employer costs in Hungary are relatively simple. Employers are responsible for:
| Employer Costs in Hungary | Approximate % of Gross Salary |
Social Security Contributions | 13% |
Employment Law
Employment Law in Hungary
Employment Contracts: Hungarian employment contracts must be written and should detail essential information such as duration of employment, working hours, salary, and termination notice periods.
Working Hours: Hungary’s standard maximum working time is 40 hours per week, or 8 hours per day. Overtime work is regulated, with compensation for additional hours.
Leave: Employees in Hungary are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime:
According to the Hungarian Labor Code, the maximum amount of overtime an employee can work is:
- 250 hours per year, or
- 300 hours per year, if agreed upon in a collective agreement.
Employers must compensate employees for overtime work. Overtime pay must be at least 50% higher than the employee’s regular hourly rate. Alternatively, employers can provide compensatory time off instead of monetary compensation. However, this time off must be granted within a specific period, usually within the next three months following the worked overtime.
It is essential to note that employees have the right to refuse overtime work, and they cannot be discriminated against for exercising this right. However, in exceptional cases, such as a natural disaster or other emergencies, employees might be required to work overtime.
Termination: Employers must provide a clear, legitimate reason for dismissal. This reason should be related to the employee’s ability, behavior, or the employer’s operational requirements. Unfair dismissals can lead to claims for damages or reinstatement.
Employees Rights: Hungarian employees have numerous rights, such as equal treatment, protection against discrimination, and freedom of association. Regulations address working conditions, workplace safety, and employee representation.
Public Holidays
Hungary Public Holidays
Holiday Name | Date |
New Year’s Day | 1st January |
National Day | 15th March |
Easter Monday | Varies |
Labor Day | 1st May |
Pentecost Monday | Varies |
State Foundation Day | 20th August |
Republic Day | 23rd October |
All Saints’ Day | 1st November |
Christmas Day | 25th December |
St. Stephen’s Day (Boxing Day) | 26th December |
Pension and Healthcare
Hungary Pensions
In Hungary, a mandatory state pension system exists, funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
• Employees: 18.5% for pension and disability insurance
• Employers: 10% for pension and disability insurance
Healthcare in Hugary
Hungary has a public healthcare system that provides essential medical services to its residents. The system is funded through social health insurance contributions from employees and employers, as well as government subsidies and general tax revenues.
IMMIGRATION
Work Permits in Hungary
The immigration process in Hungary is well-organized and systematic, similar to most countries worldwide. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
For those seeking employment opportunities in Hungary, a work visa is typically necessary, and obtaining one requires a job offer from a local employer. On the other hand, student visas hinge on enrollment in a recognized academic institution within the country. Individuals with family members already residing in Hungary may be eligible for family reunification visas.
To secure a residency permit, applicants must fulfill certain criteria, including demonstrating sufficient financial means, holding valid health insurance, and successfully passing a background check. Since Hungarian is the official language, proficiency in the language can be advantageous for newcomers in terms of both navigating the immigration process and integrating into the local community.
After being granted a residency permit, it’s important to renew it as required and abide by any conditions associated with the permit. Those who aspire to become permanent residents or even citizens of Hungary must undertake additional steps and fulfill specific requirements, such as residing in the country for a predetermined duration.
Wondering if expanding
in Hungary is right for you?
Read on or speak to a member of our team now
The Benefits
Hungary Employer of Record Benefits
When you choose Agility EOR to expand in Hungary, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Hungary so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Hungarian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Hungary payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.