Talent Wiki - Hungary
Your quick guide on talent and labor compliance norms in Hungary
Capital
Budapest
Currency
Hungarian Forint (HUF)
Languages
Hungarian
Payroll Frequency
Monthly
GDP per Capita
$18,982.75
Employer Tax
13%
Talent Overview
Hungary is a high-income mixed economy that generates a lot of investment and nurtures a skilled population. The country is one of the largest electronics providers in Central and Eastern Europe and paves the way for the industry’s innovation and fiscal growth.
Major economic hubs:
Budapest, Debrecen, Szeged
Skills in demand:
Project manager, Machine operator, Sales representative
Local Universities
The table below mentions the universities in Hungary with ranks:
Eötvös Loránd Tudományegyetem
Ranking
Local: 1
World: 389
Budapesti Muszaki és Gazdaságtudományi Egyetem
Ranking
Local: 2
World: 490
Közép-Európai Egyetem
Ranking
Local: 3
World: 520
Szegedi Tudományegyetem
Ranking
Local: 4
World: 639
Debreceni Egyetem
Ranking
Local: 5
World: 927
Salary Data
Some common jobs in Hungary with average monthly salary are:
| Job Title | Average Monthly Salary (in HUF) | Average Monthly Salary (in USD) |
| Financial Manager | 957,000 HUF | 2235.92 USD |
| General Manager | 823,000 HUF | 1922.84 USD |
| Business Developer Manager | 700,000 HUF | 1635.47 USD |
| Financial Analyst | 609,000 HUF | 1422.86 USD |
| Business Analyst | 668,000 HUF | 1560.70 USD |
| Project Manager | 524,000 HUF | 1224.26 USD |
Talent Sourcing Tips
Top Local Job Boards
Number of LinkedIn users
1,326,000
Multiplier Recruitment Partner
Employing in Hungary
The Hungarian Labor Code compiles the rules and regulations that every employer in the country must follow. Deviating from the mandated rules can lead to hefty fines and punishments. This section discusses the onboarding regulations that every employer must know before hiring in Hungary.
Employee Contract
As per the Hungarian Labor Code, the employment contracts must be written in local language and include essential information, such as compensation, benefits, working hours and responsibilities.
Probation Period
The probation period in Hungary is three months.
Public and Provincial Holidays 2023
| Date | Name | Type |
| 1 January | New Year’s Day | National holiday |
| 15 March | 1848 Revolution Memorial Day | National holiday |
| 7 April | Good Friday | National holiday |
| 10 April | Easter Monday | National holiday |
| 1 May | Labor Day / May Day | National holiday |
| 29 May | Whit Monday | National holiday |
| 20 August | Hungary National Day | National holiday |
| 23 October | 1956 Revolution Memorial Day | National holiday |
| 1 November | All Saints’ Day | National holiday |
| 25 December | Christmas Day | National holiday |
| 26 December | Second Day of Christmas | National holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual leaves | 20 days | Yes |
| Sick leaves | 15 days | Yes |
| Maternity leaves | 24 weeks | Yes |
Payroll
Payroll Cycle
The payroll cycle in Hungary is monthly.
Minimum Wage
The minimum wage in Hungary is HUF 260,000 for professional workers and HUF 200,000 for others.
Overtime Pay
The working hours in Hungary are capped at 8 hours per day and 40 hours per week. If an employee dedicates any additional time to office hours, they are liable to receive overtime pay at 150% of their regular salary. Overtime hours during public holidays and weekends must be compensated at a rate of 200% of the employee’s regular pay.
Bonus
13th Month Pay
Hungary does not mandate 13th-month pay. However, employers can offer ad hoc or performance bonus to their employees.
Employee Benefits
- Paid time off
- Pension
- Parental leaves
- Eye exams
Taxes
Employer Payroll Tax
| Type of Contribution | Contribution |
| Social contribution tax | 13% |
Employee Payroll Tax
| Type of Contribution | Contribution |
| Social contribution tax | 18.5% |
Employee Income Tax
The personal income tax in Hungary is 15% of the taxable gross income of an employee.
VAT
The standard rate of Value Added Tax in Hungary is 27%. Companies dealing in dairy, cereals, flour and starch products are levied VAT at a reduced rate of 18%. A further reduced VAT of 5% is applicable for new residential property, a few pharmaceutical products, literature books, audiobooks, newspapers, heating services, live performance activities, accommodation services, dining services, internet access, and certain animal products.
Offboarding & Termination
An employee can be terminated on the basis of mutual consent, with or without notice. The termination letter must specify the reason behind the step. The employer must pay the departing employee their wages and other payments by the third day from termination, with the relevant statements and certificates.
The notice period in Hungary is 30 days.
The severance pay for an employee is calculated as per the given table:
| Tenure of employment | Severance pay |
| 3 years | 1 month’s pay |
| 5 years | 2 month’s pay |
| 10 years | 3 month’s pay |
| 15 years | 4 month’s pay |
| 20 years | 5 month’s pay |
| 25 years | 6 month’s pay |
Visa and Immigration
EU citizens can work freely in Hungary with only a registration card and a registered address. However, non-EU citizens must apply for both permits; residence and work permit to stay and work in the country.
Before starting their work, the employee must be integrated in the Hungarian taxation and social security system by the employer.
