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Hungary
Hungary is a landlocked country, situated in the Carpathian Basin. Its two longest rivers called Danube andTisza divide Hungary into three parts: Transdanubia (to the west of the Danube), the plain between the Rivers Danube and Tisza, and the Trans-Tisza region (to the east of the Tisza). Two-thirds of Hungary’s geographic area is less than 200 meters above sea level.
POPULATION
9,6 millions inhabitants
CURRENCY
Hungarian forint (HUF)
GDP
$ 262.92 billion
MINIMUM MONTHLY WAGE:
HUF 322,8
TIME ZONE
UTC +1
Hungary is a high-income EU country with a very high Human Development Index and a skilled labour force. According to the latest forecasts from the European Commission, economic growth is expected to gradually recover in 2026 after a period of weak performance, while inflation continues to ease.
The labour market remains stable, with unemployment around 4–5%, and wages have been rising in recent years. Hungary provides statutory employment protections, including paid annual leave, maternity benefits and sick pay. Overall, the country offers stable working conditions and improving income levels, although moderate growth and fiscal pressures remain part of the current economic environment.
✓ full-time and part-time contracts,
✓ fixed-term contracts,
✓ self-employment,
✓ agency staff.
The maximum number of hours that employees can work in an average working week is 40 hours, but it cannot exceed 48 hours,including overtime or 72 hours in the case of stand-by jobs if so agreed by the parties.
Students are allowed to work eight hours a day, or 40 hours a week. They are not allowed to work night shifts, and there must be atleast 12 hours between consecutive shifts.
According to Labor Code, employee shall be entitled to break time if the scheduled daily working time or the duration of overtimework performed exceeds 6 hours.
The length of the break-time is 20 minutes of break-time shall be provided. If working time exceeds 9 hours, and additional 25minutes of break-time shall be provided.
The break should not be at the end of the working day.
Over a seven-day period, the employee may work a maximum of 48 hours on average. Employers can demand overtime of up to 150 hours in a calendar year, while an additional 250 hours of overtime (in total 400 hours) can be ordered based on the parties’ agreement, similarly to the new Hungarian overtime regime. Working overtime shall be in writing, if requestedby the employee.
Overtime work shall mean work performed:
outside regular working hours;
over and above the hours covered within the framework of working time banking;
over and above the weekly working time covered by the payroll period, where applicable; and the duration of on-call duty.
Employees in Hungary are entitled to at least 20 days off per year. The amount increases based on the age of the employeeas follows:
- Up to the Age of 25: 20 business days
- From the Age of 25: 21 business days
- Up to the Age of 31: an additional business day every 3 years
- Up to the Age of 45: an additional business day every 2 years
- From the Age of 45: 30 business days
The amount of vested vacation time shall be twenty working days. Workers shall be entitled to extra vacation time from 1 to 10 days depending on the age of the employee according to the Labor Code. Parents are also entitled to vacation after children (2days after one, 4 days after two children, 7 days as a maximum per calendar year).
Hungary Public Holidays
1 January New Year’s Day
15 March National Day
3 April Good Friday
6 April Easter Monday
1 May Labor Day
25 May Whit Monday
20 August State Foundation Day/ Saint
Stephen’s Day
23 October National Day
1 November All Saints Day
25 December Christmas Day
26 December Second Day of Christmas
Typically, if a public holiday in Hungary falls on a Tuesday or a Thursday, the day before the public holiday (Monday) or the day after that (Friday) will be designated as a day off. This way we can have a so-called long weekend. In return, a Saturday (usually oneweek before or after the public holiday) will be designated as a working day.
Employees are entitled to 15 days of paid sick leave paid by the employer. They receive 70.00% of their salary ratebased 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 one 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 madeby the employer and two-thirds paid by the National Health Insurance Fund.
If an employee is unable to work due to a work-related accident or occupational illness for 4 days or more but less than 3 months, the employer must pay the injured employee at a rate of pay of at least 75% from the first day of injuryuntil the employee returns to work.
If the employee is unable to work for a period longer than 3 months, the employee must claim compensation from theCompensation Fund.
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 to 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).The family allowance is available to entitled individuals and the rate of the allowance is dependent upon the number of dependents and beneficiary dependents. This allowance has been increased from 2023 if one of the beneficiary dependentsis seriously disabled or permanently ill.
Paternity Leave
A father is entitled to 10 days of paid paternity leave or 12 days for multiple/complicated births taken within the two monthsfollowing birth.
Parental Leave
A father is entitled to 10 days of paid paternity leave or 12 days for multiple/complicated births taken within the two months following birth.
Pension: State retirement benefits are provided through pension insurance, administered by the Hungarian State Treasury. The basic pension is called the First Pillar and additional, mandatory, benefits, based upon differing contributions is the Second Pillar(only for the existing members). The Third Pillar relates to voluntary contributions for extra benefits. The Forth Pillar concerns contributions into specific accounts.
Medical, life and accident insurance: In Hungary, employees are entitled to health insurance, and have a choice of public private healthcare. Public healthcare is delivered through a state system which entitles citizens to free or low- cost healthcare and is fundedby compulsory monthly social security payments.
Most common additional benefits are: individual or season tickets for sports events, holiday gift cards, a meals allowance, mobilephone allowance, and car allowance/reimbursement.
European nationals can apply for jobs in the same way as Hungarian nationals, and having an EU passport will also ensure that you donot need a work permit in Hungary.
Non-EU citizens will have to apply for jobs with employers that are willing to support their work permits. The process of applying forwork permits can take up to nine months and usually needs to be accompanied by other relevant documentation such as proof of residence and a health insurance certificate, which are generally organized by the employer sponsoring the permit.
Before applying for your permit, you will need a valid job offer from the employer after the position has been advertised for 15 days togive Hungarian citizens an opportunity to apply. This forms part of the application expats has to make for a work-based combined residence permit.
The consolidated permit application needs to be applied for in your home-country consulate, or if you entered the country on a visitor’s visa, you would have to apply at the Hungary Immigration
Authority.Types of Permits and Visas
Individual work permit – For foreign nationals who want to work in Hungary for not more than 90 days over a 180-day period.Joint work permit – For foreign nationals who wish to work in Hungary for more than 90 days within a 180-day period.
Residence permits – permits residency in Hungary for up to 90 days.
Single application procedure – For non-EEA nationals who wish to reside in Hungary for more than 90 days within a 180-day period.This permit type can only be applied for through an employment relationship with a Hungarian employer.
Long Stay Visa (D) – For those who wish to stay in Hungary long-term, and also acts 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 for temporary purposes. This visa canbe used for single or multiple entries. It allows holders to stay for 90 days within six months.
Seasonal Employment Visa – for foreign nationals who wish to work in agriculture, animal husbandry, or fishing are eligible for thisvisa. 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 permitis also acquired. To be eligible for this card, the foreign national will need to prove 18 months of lawful stay in a member state.
Employers can terminate a fixed-term contract for the following reasons – business, personal, or worker misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, andthe employee gets a chance to explain their actions.
Upon termination of the employment relationship by notice, the employee must receive the final salary payment no laterthan 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 beextended 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.
- No notice is required whilst on probation.
Employers must justify their dismissals in writing. The reasons must be clearly specified, authentic and substantial. Reasonsof termination by notice may be in connection with the employer’s behavior in relation to the employment relationship, with the employee’s ability or in connection with the employer’s operations.
The employer shall be permitted to terminate a fixed-term employment relationship by notice:
- ifundergoingliquidationorbankruptcyproceedings;or
- forreasonsrelatedtotheemployee’sability;or
- ifmaintainingtheemploymentrelationshipisnolongerpossibleduetounavoidableexternalreasons.
The period of notice for the termination of a fixed-term employment relationship by notice may not go beyond the fixed term. In the event of dismissal, the employer shall excuse the employee concerned from work duty for at least half of thenotice period. The exemption from work duty shall be allocated in not more than two parts, at the employee’s discretion.
Termination by mutual consent
The termination by mutual consent is not regulated by expressed Hungarian Labor Code provisions. Termination by mutualconsent allows the employer and employee to agree freely but in agreement with each other on the conditions of termination.
Dismissal without notice
Employer or employee may terminate an employment relationship without notice if the other party:
- willfullyorbygrossnegligencecommitsagraveviolationofanysubstantiveobligationsarisingfromthe employmentrelationship; or
- otherwiseengagesinconductthatwouldrendertheemploymentrelationshipimpossible.
The right of termination without notice may be exercised within a period of fifteen days of gaining knowledge of the groundstherefor, in any case within not more than one year of the occurrence of such grounds, or in the event of a criminal offense up to the statute of limitation for criminal liability.
In case of termination without notice, the justification is obligatory for the employer or the employee as well. The right of termination without notice may be exercised, without giving reasons:
- by either party during the probationary period;
- by the employer in connection with fixed-term employment relationships.
Employees are entitled to severance pay after completing 3 years of service. It is required and varies between 1-6 months’ salary depending on the length of service and age of the worker.
Severance is not required when using a fixed-term contract.
Probation Period
The statutory length of probation in Hungary is no more than three months. Should the contracted probation period be lessthan three months, the parties may extend the duration once, but for no longer than three months in its entirety.
An employee shall be entitled to severance pay if his/her employment relationship is terminated:
by the employer;
upon the dissolution of the employer without succession; or
if during a transformation as a legal succession or a business transfer, the transferee employer is not covered by the labor code.
The entitlement to severance pay shall only apply upon the existence of an employment relationship with the employer forcertain time lengths (specified below) at the time when the notice of dismissal is delivered or when the employer is terminated without having a legal successor.
The regulation foresees that, in terms of entitlement for severance pay, any period of at least 30 consecutive days for whichthe employee did not receive any wages shall not be taken into consideration, with the exception of:
maternity leave and any leave of absence without pay for nursing or caring for a child; and
any leave of absence without pay taken for the purpose of actual reserve military service for a period of no morethan three months.
Severance pay shall be:
one month salary, for up to three years of service; two months’ salary, for up to five years of service; three months’ salary, for up to 10 years of service; four months’ salary, for up to 15 years of service; five months’ salary, for up to 20 years of service; and six months’ salary, for up to 25 years of service.
The amount of severance pay shall be increased by 1-3 months’ absentee pay (as detailed in the labor code) if the employment relationship is terminated within the five-year period before the date when the employee reaches the age limitfor old-age pension. There are slight differences to this timeline if the worker is employed in the public sector.
The employee shall not be entitled to receive severance pay if:
he/she is a pensioner at the time when the notice of dismissal is delivered or if the employer terminated withoutsuccession;
he/she is dismissed for reasons connected with his/her behavior in relation to the employment relationship or ongrounds other than health reasons;
he/she is employed on a fixed-term contract.
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