Country Payroll Guide Hungary

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Key Facts

Capital
Budapest
Date format
yyyy.mm.dd
Currency
Forint (HUF)
VAT
the standard rate is 27%

Contributions

Employers

Social Contribution Tax
Social Contribution Tax - 15.5%
Vocational Training Fund
Vocational Training Fund - 1.5%
Total Employment Cost
Total Employment Cost - 17%

Employees

Health Care Contribution
Health Care Contribution - 7%
Pension Fund
Pension Fund - 10%
Unemployment Fund
Unemployment Fund - 1.5%
Total Employee Cost
Total Employee Cost - 18.5%

Minimum Wage

Minimum Wage
The minimum wage in Hungary is 167400 to 219000 HUF per month.

Payroll

Payroll Cycle
Monthly

Income Tax

Employee Income Tax (1)
Income Tax - 15%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime hours during the week are paid at a rate of 150%. Overtime hours on weekends and bank holidays are paid at a rate of 200%.

Leave

Paid Time Off

All employees are entitled to a minimum of 20 days of paid vacation per year.

Starting at the age of 25, the number of annual vacation days is raised by one day every three years during their twenties, and every two years during their thirties and forties.

Public Holidays

11 public holidays.

Sick Days

Employees are entitled to 15 days of sick leave per year, paid by employer at a rate of 70% of the salary.

From the 16th day, the payment vary between 50%-60% depending on the term of service. 1/3 of the payment is paid by the employer and 2/3 are paid by the National Health Insurance Fund.

Maternity Leave

Women have 24 weeks maternity leave but are allowed to take up to three years off and receive maternity benefits.

For the first six months, mothers are entitled Pregnancy and Confinement Benefit (CSED) at a rate of 70% of the salary.

For the next eighteen months, until the child’s second birthday, mothers are entitled to Child Care Fee (Gyermekgondozási díj – GYED) at a rate of 70% of the salary up to a maximum of double the minimum wage.

Paternity Leave

Following the birth of their child, fathers are entitled to five days of paid leave, which they may take in one or in several parts until the end of the second month after the birth.

Any income and taxes related to this period of supplementary leave are reimbursed to the employer by the Hungarian State Treasury.

Parental Leave

After the maternity leave is over, one parent can take parental leave up until the child reaches the age of 2 years old. This leave is paid at the rate of 70% but is capped at double the minimum daily wage:

  • 2 additional days for 1 child
  • 4 additional days for 2 children
  • 7 additional days for more than 2 children

Termination

Termination Process

Both the employee and employer must provide termination in writing and must contain a justified reason for dismissal.

Notice Period

Termination during probation is effective immediately. Temporary (fixed-term) contract terminates at the end of fixed term.

Termination of a permanent contract requires a notice period of 30-90 days.

Severance Pay

Severance pay varies between one to nine months depending on the length of service and employee’s age.

Probation Period

Probation period is optional and cannot exceed 3 months.

Visa

Employment Visa

All non-EU citizens must have a work visa and work permit to live and work in Hungary.