Hire employees and manage payroll in Hungary

Our guide to employing in Hungary.

Country facts

Hungary, a member of several international organisations including UN, NATO, WTO, the World Bank, International Investment Bank, the Asian infrastructure Investment Bank, the Council of Europe, and the Visegrád Group.

It is also a full EU member and is part of the Schengen Area. Its nominal GDP in 2021 was 181 billion USD, ranking it as the world’s 53rd economy. Hungary’s Human Development Index is at 0.854, classified as very high, with a global rank of 40.




Hungarian Forint (HUF) 

Languages spoken


Population size (2020)

9,75 million

Ease of doing business (world bank ranking)


Cost of living index(2021)


Payroll frequency


VAT – standard rate


GDP – real growth rate(2020)


Employing in Hungary

Registering a company in Hungary is generally prerequisite for doing business. A local registered attorney must sign the company’s constitutive documents. Incorporation is carried out as a request, which is filed with a Hungarian Court of Registration within 30 days from the conclusion of the constitutive document. The registration procedure is digitized.

In sum, the timeframe to consider for incorporating in Hungary includes: 1 day to prepare registration documents, 1 one to open a bank account, followed by incorporation and the issuance of the certificate of registration from the Trade Register, which usually takes up to 15 days. Finally social insurance registration takes 1 day. A registration certificate is then issued, which the company needs to operate.

In Hungary, a written employment contract is a requirement and an obligation which falls on the employer. As per Hungarian labour law, the contract must stipulate the wage and position of the employee – these terms are essential under. Generally speaking, an employment can either be fixed term (határozott időre szóló munkaszerződés), a contract which cannot exceed a total of 5 years, or indefinite (határozatlan időre szóló munkaszerződés). Probationary periods are possible, but may not last longer than three months.

In Hungary, full time equals 8 hours per day and 40 hours per week. Overtime hours during workdays are to be paid at a rate of 150% and overtime hours on weekends and bank holidays are paid at a rate of 200%.

Employers in Hungary may provide payslips online. Social security contributions are to be paid on the 12th every month and are based on gross salaries. Payroll reports must be kept for at least 7 years.

When hiring a new employee, he/she must be registered with the Tax Department and the National Office for Health Insurance before starting to work. A new employee also has to register with the tax authorities, through the National Tax Authority NAV. The must be completed minimum one day before the starting work.

The following information is required for this registration: Name, Address, Date of birth, Place of birth, Mother’s name, Tax card number, Pension insurance number, ID number, Bank account details, Employer’s name, Gross salary, Starting date, Type of contract, Position, Activity/Job code number (FEOR – Hungarian standard classification of occupations). In addition, leaving documents from any previous employer will be needed, as well as employment certificate, certificate about contributions paid, salary and income tax certificate, certificate for unemployment allowance, social security booklet, certificate of maintenance obligations.

For expats, the following is required: Passport, Tax number, Address card, Employment contract, Work permit (non-EU citizens only), Permanent residence permit, Social Contribution Number, A1 or similar certificate (from EU Citizens).

List of Public Holidays - 2024

DateHoliday Name
1 JanuaryNew Years Day
15 MarsRevolution Day
29 MarsGood Friday
1 AprilEaster Monday
1 MayLabour Day
20 MayWhit Monday
20 AugustSaint Stephen’s Day
23 OctoberRepublic Day
1 NovemberAll Saints Day
25 DecemberChristmas Day
26 December2nd Day of Christmas

Minimum wage

The general minimum wage for unskilled labour is 167,400 HUF / month and for skilled labour 219,000 HUF / month. Collective bargaining agreements can affect these minimum wages.

Salary payouts

Salaries are paid monthly and on the 10th of the following month.

Taxes in Hungary

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Hungary.


Corporate income tax rate: 9% (among the lowest in the EU)

Social Contribution Tax : 15.50%

Vocational Training Fund : 1.50%

Total employer cost : 17.00%


Health Care Contribution : 7.00%

Pension Fund : 10.00%

Unemployment Fund : 1.50%

Long-term care insurance (employees aged 23 or older) : 1.525%

About Internago

Internago offers subsidiary management, HR and international payroll services combined with international payroll software and professional business advisory services.