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.
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.
The statutory minimum is about HUF 266,800 per month in 2024*, with a higher guaranteed minimum for skilled roles, revised annually.
Monthly payroll. There is no statutory 13th salary; bonuses are contractual.
There are around 11 public holidays a year, with rescheduled working Saturdays around some of them.
A written contract is required. Probation is up to three months, with immediate termination allowed during it.
The main employer cost is the social contribution tax of 13% of gross salary, a single levy that replaced the older multi-fund system.
Hungary consolidated employer charges into one social-contribution tax, which keeps the employer side low and predictable.
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.
A base of 20 paid days a year, rising with age, plus extra days for children and certain circumstances.
24 weeks of maternity leave, funded through social insurance.
Parental and childcare leave with state allowances (GYED and GYES) until the child is older.
The employer pays for the first 15 working days of illness, after which social insurance provides sick pay.
Notice runs from 30 up to 90 days by tenure and must state a valid reason for open-ended contracts.
Statutory severance of one to six months' pay applies after three years of service, scaled by tenure.
Up to three months, during which either side can end the contract at once.
A contractor working like an employee can be reclassified, with back contributions and tax.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Hungarian employment contract, payroll, the social contribution tax, and benefits, handled. One invoice, flat $399 per month.