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Hiring in Hungary gives employers access to a skilled and cost-effective workforce with strong capabilities in manufacturing, automotive, IT, engineering, and shared services. Hungary is a key talent hub in Central Europe, offering EU-aligned employment standards with competitive labor costs.
Employment in Hungary is regulated by the Hungarian Labour Code, which governs employment contracts, wages, working hours, termination, and employee protections. Employers must comply with national labor regulations and applicable collective agreements. Many companies rely on job portals, recruitment agencies, and AI-driven hiring platforms to manage recruitment efficiently while staying compliant.
Facts & Stats
Key Employment Rules Employers Must Know
Employment relationships in Hungary are governed by the Hungarian Labour Code. Employment contracts must be in writing and specify job role, salary, and working conditions. Probation periods are allowed for up to 3 months unless otherwise agreed.
The standard working week in Hungary is 40 hours, typically spread across five working days. Employers may apply flexible or uneven working schedules within legal limits.
Overtime is regulated and generally capped at 250 hours per year, with an additional allowance under collective agreements. Overtime must be compensated through increased pay or time off in lieu, as defined by law.
Hungary has a nationally regulated minimum wage, updated annually. The current gross monthly minimum wage is HUF 266,800 for full-time employees. Employers must ensure wages meet or exceed this threshold.
Employees are entitled to statutory paid leave and legal protections related to termination, notice periods, and severance pay.
Overview of Employer, Employee, and Individual Taxation in Hungary
Approximately 18.5%
Employees contribute around 18.5% of their gross salary toward social security, which is deducted automatically from wages.
Approximately 13%
Employers contribute approximately 13% of an employee’s gross salary toward social contributions, covering pensions, healthcare, and unemployment insurance.
15%
Hungary applies a flat personal income tax rate of 15% on individual income.
Hungary operates a mandatory public pension system funded through employer and employee contributions. Pension eligibility depends on age and contribution history.
Employment termination in Hungary must comply with the Hungarian Labour Code. Employers must provide valid grounds for termination and follow formal procedures. Notice periods depend on the employee’s length of service and can range from 30 to 90 days. Immediate termination is only permitted in cases of serious misconduct.
In Hungary, the statutory notice period starts at 30 days and increases with the employee’s length of service, up to a maximum of 90 days. The notice period applies to both employers and employees unless otherwise agreed.
Severance pay in Hungary depends on the employee’s length of service and reason for termination. Employees may be entitled to severance pay ranging from one to six months’ salary in cases such as redundancy.
Employees in Hungary are entitled to a minimum of 20 days of paid annual leave per year, with additional days granted based on age and family status. Paid sick leave is available, with compensation shared between the employer and social security. Maternity leave lasts up to 24 weeks and is paid through social insurance, while paternity leave is also available and partially compensated. Employees are entitled to paid bereavement leave, typically ranging from 2 to 5 days depending on circumstances.
January 1
New Year’s Day
March 15
National Day
May 1
Labour Day
August 20
State Foundation Day
October 23
National Day
December 25
Christmas Day
Frequently asked questions
What makes Iris helpful for hiring in Hungary?
Iris helps employers source and evaluate candidates efficiently while supporting compliance with Hungarian labor laws and EU employment standards.
Is it mandatory to hire Hungarian nationals?
No. Employers can hire both Hungarian and foreign nationals. Non-EU employees must have valid work authorization, while EU citizens can work freely in Hungary.
How is severance calculated in Hungary?
Severance is based on the employee’s length of service and the reason for termination, with statutory minimums defined by law.
What are the official working hours in Hungary?
The standard working week in Hungary is 40 hours, typically spread across five days.
Do employees in Hungary receive a pension?
Yes. Employees are covered by a mandatory public pension system funded through employer and employee social security contributions.
