Employee agreements

Employees in Hungary must sign a written employment contract before their start date. Contracts typically include:

• Role and responsibilities
• Compensation details
• Weekly working hours
• Work location
• Contract duration (indefinite or fixed term)

Though not mandatory, it's standard to include probation periods and notice terms.

Probationary periods

Hungarian labor law permits probationary periods of up to three months. During this time, either party may terminate the contract with immediate effect and without justification.

Working hours

A standard full-time workweek in Hungary is 40 hours, typically eight hours per day, Monday through Friday. Annual overtime is capped at 250 hours, unless otherwise agreed in a collective bargaining agreement.

How an employer of record helps you hire in Hungary

Velocity Global’s EOR solution in Hungary handles the legal and HR complexities so companies can:

• Draft and execute compliant employment agreements
• Navigate Hungary’s labor laws
• Onboard supported employees quickly
• Administer benefits and statutory entitlements

Payroll cycles

Payroll in Hungary typically runs on a monthly basis, with salary payments due by the 10th of the following month.

Minimum wage

As of 2025, Hungary's monthly minimum wage is HUF266,800 (about €680) for general roles, and HUF326,000 for roles requiring secondary education, according to Hungary’s government portal.

Bonus payments

Bonuses are not legally required but are widely used to retain top performers. Annual bonuses and 13th-month salaries are standard among Hungarian employers.

How an EOR helps run payroll in Hungary

Velocity Global’s EOR solution ensures:

• Accurate payroll processing and payment
• On-time tax and social security remittance
• Payslip generation and reporting

All while maintaining full compliance with local rules.

Tax due dates

Employers must submit tax declarations and make contributions by the 12th of the month after payment.

Tax thresholds

Hungary uses a flat 15% income tax rate. Employers contribute 13% of wages toward social security, while employees contribute 18.5%.

Health insurance

Hungary’s universal healthcare is funded through social security. Employees gain access once registered in the system.

Pensions

Mandatory pension contributions allocate 10% of employee wages to the national pension fund.

How an EOR helps calculate taxes in Hungary

Velocity Global manages:

• Monthly tax filings
• Employer and employee contributions
• Ongoing tax compliance

So companies stay focused on growth, not tax math.

Annual leave

Employees receive 20 days of paid annual leave, which increases with age and the number of dependents.

Parental leave

Mothers receive 24 weeks of job-protected maternity leave. Fathers are entitled to 10 days of paternity leave, paid by the government.

Sick leave

Employees receive 15 days of paid sick leave annually, which is provided by the employer. The state reimburses additional sick pay.

Public holidays

Hungary observes 11 national holidays, including Jan. 1 (New Year’s Day), March 15 (National Day), and Dec. 25–26 (Christmas). A complete list is available on TimeandDate.com.

How an EOR helps manage leave and PTO

Velocity Global helps companies track and manage all forms of leave in Hungary—from annual leave and sick days to parental leave and public holidays.

Statutory benefits

Employees in Hungary are entitled to:

• Social security
• Pension contributions
• Parental and sick leave
• Unemployment insurance

Supplemental benefits

To stay competitive, many companies offer:

• Private health insurance
• Meal vouchers or cafeteria benefits
• Commuting stipends or home office allowances

How an EOR administers benefits in Hungary

Velocity Global makes it easy to administer both required and optional benefits. Our local expertise ensures employees receive the support they need—and companies remain compliant.

Notice periods

The standard notice period is 30 days, extendable up to 90 days depending on tenure or contract terms.

Severance pay

Employees dismissed due to business-related reasons may receive severance pay ranging from 1 to 3 months, based on their years of service.

How an EOR supports compliant terminations

Velocity Global ensures that every termination meets Hungary’s labor standards, with accurate notice periods, proper documentation, and timely final payments.