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Country hiring guide

Hiring in Hungary ๐Ÿ‡ญ๐Ÿ‡บ

Hungary offers a skilled, cost-competitive Central European workforce and a simple, low employer contribution. All-in employer cost runs around 1.13x the gross salary. Here is what to know before your first Hungarian hire.

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Capital cityBudapest
CurrencyHungarian forint (HUF)
LanguagesHungarian
Population~9.6 million
Payroll frequencyMonthly
VAT standard rate27%
Employer burden*~13% of gross
TGTC flat EOR fee$399/mo ยท Tier A
Overview

Employing in Hungary

Employment runs under the Labour Code, with written contracts and mandatory registration. Since reforms, the employer side is dominated by a single social-contribution tax rather than multiple funds.

Minimum wage

  • HUF 290,800 unskilled / 348,800 skilled (2025)
  • Monthly gross

Payroll cycle & extra pay

  • Monthly payroll
  • No statutory 13th salary

Public holidays

  • 11 public holidays
  • Paid days off

Onboarding & probation

  • Probation max 3 months
  • Up to 6 months by collective agreement
Employer costs

What you pay on top of salary

The main employer cost is the social contribution tax of 13% of gross salary, a single levy that replaced the older multi-fund system.

Employer contribution*Rate
Social contribution tax (SZOCHO)13%

Simplicity

Hungary consolidated employer charges into one social-contribution tax, which keeps the employer side low and predictable.

Employee-side taxes

Employees pay a flat 15% personal income tax plus their own social-security contributions, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.

Types of leave

Statutory leave in Hungary

Annual leave

  • 20 days base, rising with age up to 30

Maternity & parental leave

  • 24 weeks maternity (CSED ~70%); GYED parental benefit after

Sick leave

  • 15 days/year employer-paid at 70%, then social insurance

Other leave

  • Paternity 10 working days; extra leave per number of children
Employment termination

Ending employment in Hungary

Notice

  • 30 days minimum, rising with tenure up to 90 days

Severance

  • After 3 years: 1-6 months pay by length of service

Probation

  • Max 3 months; no notice or reason needed during

Contractor risk

  • Misclassification reclassifies; back SZOCHO & bogus self-employment penalties

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Employ in Hungary without opening a Kft.

Compliant Hungarian employment contract, payroll, the social contribution tax, and benefits, handled. One invoice, flat $399 per month.

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