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Labor Laws in Hungary

  • Annual Leave: Minimum 20 days
  • Maternity Leave: 24 weeks
  • Public Holidays: 11
  • Workweek: 40 hours per week.

Income Tax in Hungary

Income Tax in Hungary is a flat rate of 15%.

Value Added Tax (VAT) in Hungary

Hungary has a standard VAT rate of 27%.

Social Security in Hungary

The social security contributions for employers and employees are as follows:

Employer's social security contributions:

  • 13% social contribution tax
  • 1.5% education contribution
  • Total employer social security contribution rate: 14.5%

Employee's social security contributions:

  • 7% health care contribution
  • 10% pension insurance contribution
  • 1.5% labor market contribution
  • Total employee social security contribution rate: 18.5%

Work Visas Hungary

The work visas available to legally work in Hungary include:

EU Blue Card:

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, severance pay and 13th month pay
  • Mandatory benefits also include social security benefits.

Work Permit:

  • Required for non-EU/EEA nationals to work in Hungary
  • Employer must apply and obtain the work permit before the employee can start work
  • Valid for the duration of the employment contract, up to 2 years
  • Can be extended if the employment continues

Intra-Corporate Transfer (ICT) Permit:

  • For employees of multinational companies being transferred to Hungary
  • Requires the employee to have been employed by the company for at least 3-12 months before the transfer
  • The initial validity of 1-3 years, renewable

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Setting up a company in Hungary can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

Our Hungary Employer of Record (EOR) solution lets you focus on your business growth.

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