Hungary Country
Guide 2024

Hungary

Hungary is a landlocked country in Eastern Europe, which has been quickly developing economically since joining the EU, and has stunning architecture, beautiful landscapes and a rich cultural history. Hungary has advanced public transport, a high level of medical care and plenty of career opportunities.

Hungary tends to have a very relaxed working environment, and socialization is a big part of the workday, which results in good relationships between employees. Hungary also has a very low tax rate, and the cost of living is very affordable, which more than makes up for the fact that the minimum wage is not too high in comparison to the rest of Europe.

• Capital: Budapest
• Spoken Languages: Hungarian
• Currency: Hungarian Forint (HUF)
• Minimum monthly wage: HUF 260,000 (Gross)

Entry Visa

Citizens of EU/EFTA Member States and Switzerland can enter Hungary with an identity card or a valid passport; other foreign citizens may enter with a valid Schengen visa.

Work Permit / Residence Permit

Citizens of EU/EFTA Member States and Switzerland can live and work without a work or residence permit in Hungary. However, they must apply for a Registration Card and an Address Card if their stay exceeds 90 days.

Other foreign nationals must obtain a Long-Stay Visa, work permit and residence permit. The work permit application is done firsthand, by the employer – in order to grant the job to a foreign national, the job must first be advertised at the Hungarian labour office for 15 days, and then a work permit requested, providing proof that there are no Hungarian or EU nationals that are eligible for the job.

After getting the work permit, a long-stay visa must be applied for, which acts as a pre-approved residence permit; this is done by the employee at a Hungarian embassy/consulate.  After obtaining the visa, the individual may enter Hungary and stay there for 30 days. During that time, they must visit the regional office of the National Directorate-General for Aliens Policing, where they can apply for and receive a residence permit.

Social Security Registration

Non-EEA nationals need to apply for a Social Insurance Identification Number from the National Health Insurance Fund Administration, as well as a Tax Identification Number from the Tax Authority.

Working Hours

A standard working week in Hungary is 8 hours/day, or 40 hours/week. An employee cannot work more than 12 hours a day and 48 hours a week, and overtime is compensated with an extra 50% on top of the gross salary.

Public Holidays

• New Year’s Day, 01 Jan
• Revolution Day, 15 Mar
• Good Friday, (Not a standard date, usually March/April)
• Easter Monday, (Not a standard date, usually March/April)
• Labour Day, 01 May
• Pentecost Monday, (Not a standard date, 7th Monday after Easter
• Saint Stephen’s Day, 20 Aug
• Republic Day, 23 Oct
• All Saints’ Day, 01 Nov
• Christmas Holiday, 24 Dec
• Christmas Day, 25 Dec
• Second Day of Christmas, 26 Dec

Vacation Allowance

Employees in Hungary are entitled to at least 20 business days off per year, depending on their age; employees over 25 years of age get 21 days, and get an additional day every 3 years up to the age of 31; from 31 to age 45, employees get an additional day every 2 years; employees 45 or older are entitled to 30 business days.

Sick Leave

Employees in Hungary are entitled to 15 paid sick days per year, where they receive 70% of their salary from the employer. After 15 days, the amount varies from 50%-60% depending on the term if service; a third is paid by the employer, while the rest is covered by the state.

Maternity / Paternity leave

Maternity: 24 weeks; must start 4 weeks prior to the estimated delivery date. The employee is entitled to 70% of their average salary during that time.

Paternity: 10 days; must be taken within 2 months of the day of birth.

Termination & Severance

After termination of employment, an individual is entitled to severance pay; the amount is dependent on the length of the employment.

Notice Period

The notice period for both employers and employees must be at least 30 days, and is based on the duration of service.

Social Security

Employee social insurance contributions are deducted automatically from the wage, while employer contributions are paid by the employers themselves.

Pension

Pension in Hungary is covered by part of the social security contributions, and individuals are eligible if they have reached the statutory retirement age and have made at least 20 years’ worth of contributions. A partial pension can also be received after 15 years’ worth of social security contributions.

Taxation in Hungary

The Hungarian fiscal year runs from January 1 to December 31.

Tax Rates

Income tax in Hungary is a flat rate of 15% on all gross taxable income.

Tax Returns

The annual income tax return needs to be filed by the 20^th May of the following year with the local Tax Authority.

Double Taxation

The annual income tax return needs to be filed by the 20^th May of the following year with the local Tax Authority.

Health Insurance

Hungary provides full medical coverage for all citizens, funded by social security contributions and the government. However, individuals may still have to pay for certain things, such as medicine.

Cost of Living

Hungary provides full medical coverage for all citizens, funded by social security contributions and the government. However, individuals may still have to pay for certain things, such as medicine.

How We Can Help

We provide a full set of services in Hungary allowing corporate clients, recruitment agencies and professional contractors to operate in an optimal manner while ensuring that all local employment obligations are taken care of.

Access Financial offers the following solutions in Hungary:

• Employed/EOR Solution
• Limited Company Solution

If you would like to discuss how Access Financial can help in Hungary, please contact us.

Disclaimer

We have prepared this as a guide only; it does not form part of an offer. Please request illustrations based on your specific case from one of our solution managers.