Minimum Wage

General

The minimum wage in Hungary is 200,000 HUF for unskilled labor and 260,000 HUF for skilled labor. Minimum wages may also be set within collective bargaining agreements.

Payroll

Payroll Cycle

In Hungary, the payroll frequency is monthly. Work between the first and last day of the month is typically paid on the last day of the month but must be paid for by the 10th of the following month.

13th Salary

In Hungary, a 13th-month salary is not mandatory. However, an employer can pay bonuses at the employer’s discretion.

Working Hours

General

The standard working week in Hungary consists of 40 hours a week, typically 8 hours a day for a five-day working week.

Overtime

All work above the standard working hours is paid as overtime and regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there is a limit of 72 hours a week; there are also different maximum working hours for minors.

Overtime hours of more than 40 hours a week are paid at 150.00% of the employee’s basic salary rate.   Overtime hours worked on weekends and public holidays are paid at 200.00% of the employee’s basic salary rate.

Working Week

Monday-Friday

Leave

Paid Time Off

All employees are entitled to a paid vacation of 20 days every year, which increases according to the employee’s age to a maximum of 30 days for employees over 45 years of age.

In addition, employees with children under 16 years of age are entitled to extra vacation time as follows:

• Two working days for one child
• Four working days for two children
• Seven working days for three children

In case the child is with disabilities, extra vacation days must be increased by two working days.

Both parents may request this extra vacation time.

Upon the birth of his child, a father shall be entitled to five extra vacation days, or seven days in the case of twins, until the end of the second month from the date of birth.

Public Holidays

There are 11 public holidays in Hungary but its custom to grant additional days e.g. 2nd St Stephen’s day  in order to have a long weekend

Sick Days

Employees are entitled to 15 days of paid sick leave, paid by the employer. They receive 70.00% of their salary rate based on the average salary across the previous six months.

Should the sickness continue past the 15th day, the employee is entitled to further time off up to 1 year (or in the event of a work accident for an unlimited period).  The sick payment is paid at a rate of one-third of the payment made by the employer and two-thirds paid by the National Health Insurance Fund.

Maternity Leave

Women have 24 weeks of maternity leave but can take up to three years of leave and receive maternity benefits.

For the first six months, mothers are entitled Pregnancy and Confinement Benefit (CSED) at a rate of 70.00% of the salary.  For the next eighteen months, until the child’s second birthday, mothers are entitled to a Child Care Fee (Gyermekgondozási díj – GYED) at a rate of 70.00% of the salary up to a maximum of double the minimum wage.

A benefit called Child Home Care Allowance (Gyermekgondozási segély – GYES) is also available for parents or grandparents taking care of a child up to the age of three.  The benefits are paid by the National Health Insurance Fund of Hungary (NEAK).

Paternity Leave

A father is entitled to 5 days paid paternity leave, seven days for multiple/complicated birth, taken within the two-months following birth.

Parental Leave

After the maternity leave period, one parent can take parental leave until the child reaches the age of 2 years old. This leave is paid at 70.00% but is capped at double the minimum daily wage.

Employees with children under 16 years of age are entitled to extra vacation time as follows:

• Two working days for one child
• Four working days for two children
• Seven working days for three children

Other Leave

There is no other statutory leave in Hungary, however, many companies do allow employees two days’ leave in the event of a death of a family member.

Termination

Termination Process

Employers can terminate a fixed-term contract for the following reasons – business, personal, or workers misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain actions.

Upon termination of the employment relationship by notice, the employee must receive the final salary payment no later than the fifth working day after the termination of the employment relationship.

Notice Period

In Hungary, the notice period is 30 days. If the employer terminates the employment, the 30-day notice period must be extended by a set number of days based on the years of service:

• After three years of service, five additional days’ notice is required.
• After five years of service, 15 additional days’ notice is required.
• After eight years of service, 20 additional days’ notice is required.
• After ten years of service, 25 additional days’ notice is required.
• After fifteen years of service, 30 additional days’ notice is required.
• After eighteen years of service, 40 additional days’ notice is required.
• After twenty years of service, 60 additional days’ notice is required.

By agreement of the parties, the notice period may be extended by up to six months.

Severance Pay

Employees are entitled to a severance payment if the employer terminates employment for operational reasons. The amount of severance pay is a minimum of 1 month’s salary and a maximum of six months, dependent on the stipulation in the employment contract.

Probation Period

The statutory length of probation in Hungary is no more than three months.  Should the contracted probation period be less than three months the parties may extend the duration once, but for no longer than three months in its entirety.

Common Benefits

General

Individual or season tickets for sports events, holiday gift cards, a meals allowance, mobile phone allowance, and car allowance/reimbursement.

VISA

VISA

For foreign nationals to enter Hungary to work, they need to apply for one of the following work permits:

• Individual work permit – For foreign nationals who want to work in Hungary for not more than 90 days over 180 days.
• Joint work permit – For foreign nationals who wish to work in Hungary for more than 90 days within 180 days.
• Residence permits – permits residency in Hungary for up to 90 days.
• Single application procedure – Non-EEA nationals who wish to reside in Hungary for more than 90 days within 180 days. An employee can only apply for this permit type through an employment relationship with a Hungarian employer.

Types of Visas

• Long Stay Visa (D) – Those who wish to stay in Hungary long-term act as a pre-approved residency permit.
• Working Schengen Visa – This visa type is used for short-term employment opportunities.
• Schengen Business Visa – For foreign, non-EEA nationals who wish to travel to a Schengen area temporarily. This visa can be used for single or multiple entries. It allows holders to stay for 90 days within six months.
• Seasonal Employment Visa – foreign nationals who wish to work in agriculture, animal husbandry, or fishing are eligible for this visa. This allows the applicant to work for no more than 180 days.
• EU Blue Card – a highly-skilled non-EU worker, residing in an EU-member country can apply for this card as long as a residence permit is acquired. The foreign national will need to prove 18 months of lawful stay in a member state to be eligible for this card.

A residence permit is valid for up to 3 years. A work permit is valid for two years, while a visa can be valid for a year.

VAT

General

The standard rate of sales tax in Hungary is 27.00%.