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Global Expansion Guide

Hungary

Manage and pay your employees easily with BIPO in Hungary and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Hungarian Forint (HUF)

employment guide_language

Language

Hungarian

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Capital

Budapest

Employer of Record Hungary

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Hungary

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  • Global Hiring Guide
  • Hungary

Employer of Record Hungary

Embark on your business expansion in Hungary with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Hungarian market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Fixed-term Contract

Typically used for seasonal or project-based work. The maximum duration shall not exceed 5 years.

Open-ended Contract

This type of contract remains in effect until terminated by either party with proper notice and is the most common form in Hungary.

Temporary Agency Work Contract

Hungarian labor law provides specific rights and protections for temporary agency workers, enabling companies to meet temporary labor needs.

Content of Contract:

  • Name and details of the employee;
  • Basic salary of the employee;
  • The position of such employee;
  • Usually include workplace, working hours, probationary period, and other relevant details.

Statutory Contributions

Category Details Employer’s Contribution Employee’s Contribution
Social Security Pension insurance, health insurance, unemployment insurance, occupational accident insurance – 18.50%
Social Contribution Tax 13% –
Total Approx. 13% Approx. 18.5%

As of 1st Jan 2025, any dependent person who has reached the age of 18 and is not otherwise covered by social security shall be required to pay a monthly health service contribution of 11,800 HUF (Approx. 390 HUF per day) to remain entitled to public healthcare services.

Minimum Wage

As at 1st Jan 2025, the statutory minimum wage levels in Hungary shall be as follows:

  • General minimum wage (applicable to employees without professional qualifications): 290,800 HUF per month;
  • Guaranteed minimum wage (applicable to employees with at least a secondary education or vocational qualification): 348,800 HUF per month.

Public Holidays

In 2025, the national public holidays are shown below. The specific observance of holidays shall be subject to the regulations of the Hungarian government or local authorities.

Holiday NameDate
New Year’s Day1 January 2025
Revolution Day15 March 2025
Good Friday18 April 2025
Easter Monday21 April 2025
Labour Day1 May 2025
Whit Monday9 June 2025
Saint Stephen’s Day20 August 2025
Republic Day23 October 2025
All Saint’s Day1 November 2025
Christmas Eve24 December 2025
Christmas Day25 December 2025
2nd Day of Christmas26 December 2025

Working Hours

Normal Working Hours

The standard working hours are normally 8 hours per day and not more than 40 hours per week.

The maximum working hours are 12 hours per day, with an average of no more than 48 hours per week.

Rest Time

  • Breaks during work:

    • Employees working 6 hours are entitled to a 20-minute break.
    • Employees working 9 hours are entitled to a 45-minute break.

  • Daily rest:

    • The minimum continuous rest period between two working days shall be 11 hours.

  • Weekly rest:

    • Employees shall be entitled to at least 48 consecutive hours of rest per week, and at least one Sunday off per month.

Night Work

Working hours between 10:00 p.m. and 6:00 a.m. are considered night work.

For shift employees whose daily schedule frequently varies, and who work between 6:00 p.m. and 6:00 a.m., the employer shall pay a night shift allowance of 30% of the standard wage.

If an employee works during night hours for more than one hour but is not eligible for the shift allowance, the employer shall pay a night work allowance of 15% of the standard wage.

Overtime

  • Overtime Limits:

    Employees may work up to 250 hours of overtime per year, which may be increased to 300 hours under collective agreement. If the employee signs a voluntary overtime agreement, an additional 150 hours may be worked for a total maximum of 400 hours per year.

  • Overtime Pay:

    • On working days: Employees shall receive an overtime supplement of 50% in addition to the regular wage; if compensated by time off, the employee’s consent is required, and rest time equal to the overtime hours must be provided.
    • On rest days: Employees shall receive 200% of their wage, which is base salary plus 100% of supplement, or equivalent time off, with an additional 50% overtime supplement. When time off is provided, a minimum of 48 consecutive hours of rest must be guaranteed.
    • On public holidays: Employees shall receive 200% of their wage, which is base salary plus 100% of supplement, or equivalent time off, with an additional 100% overtime supplement.

Other Regulations

The employer shall keep records of the employee’s start and end times for standard work or overtime, on-call/rest periods, and leave time, and update such records daily.

Probationary Period

The employment contract may provide for a probationary period of up to three (3) months from the commencement of employment. The probationary period may be extended once, and the extended period shall not exceed three (3) months, unless otherwise permitted under a collective agreement, in which case the total probationary period may be up to six (6) months.

Leave

Statutory leaves in Hungary include:

Type Applicable to Duration
Paid Annual Leave All Employees 20-30 days
Paid Sick Leave All Employees For the first 15 working days of continuous sick leave, the Employer shall pay 70% of the employee’s daily wage; Beyond the first 15 working days, payment shall be made by the social security system.
Maternity Leave Female Employees 24 weeks
Paternity Leave Male Employees Up to 10 workdays
Parental Leave Employees who have completed one year of continuous service and have children under the age of three Up to 44 workdays

Termination and Compensation

Notice Period

The standard notice period is 30 days.

Additional notice periods increase with years of service, ranging from 5 to 60 days. By mutual agreement, the maximum notice period may be extended up to 6 months:

Years of Service (years) Notice Period (days)
3-5 35
5-8 45
8-10 50
10-15 55
15-18 60
18-20 70
Over 20 90

Severance Pay

  • Severance pays shall not be available to any employee dismissed on the grounds of non-performance of duties or disciplinary misconduct.
  • Severance pays shall be calculated based on the employee’s most recent total wages. An employee who has completed at least three (3) years of service shall be entitled to severance pay equal to one (1) month of total wages. The amount of severance pay increases with the length of service, as follows:
Years of Service (years) Severance Pays (equivalent to [x] months of wages)
3-4 1
5-9 2
10-14 3
15-19 4
20-24 5
Over 25 6
  • An additional absence compensation shall be provided by the employer, if the employment relationship is terminated within five (5) years prior to the employee reaching statutory retirement age (65 years old). The amount of such compensation shall be one (1) to three (3) months’ wages.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Hungarian regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with Hungary’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Hungary’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Hungary’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Hungary

Unlock your growth potential with BIPO’s Employer of Record service in Hungary. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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