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Expand Your Employer of Record Services In Hungary
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Expand Your Employer of Record Services In Hungary
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Hungary At a Glance
Hungary At a Glance
Hungary At a Glance
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Country Information
Easily navigate Hungary Employment Landscape
Easily navigate Hungary Employment Landscape
Easily navigate Hungary Employment Landscape
Everything you need to know about working in Hungary, explained in one place. Explore practical, up-to-date guidance on Hungarian employment rules under Act I of 2012 (Labour Code)—including written employment terms and core employee protections—plus work visa / residence permit for employment routes for non-EU nationals through Hungary’s immigration authority
Weekly Working Hours
National Holidays
Leave
Types of Employment
Employment Costs
IC Class Factors
Labor Leasing
Minimum Wage
Medical Benefits
Probationary Periods
Termination Notice
Severance
Understanding Weekly Working Hours in Hungary
Explore Work hours Employee rights in Hungary
Explore Work hours Employee rights in Hungary
Explore Work hours Employee rights in Hungary
In Hungary, working hours are regulated under the Hungarian Labour Code to protect employees and ensure fair working conditions. The standard working time is 8 hours per day and 40 hours per week for full-time employees.
Work performed beyond normal working hours is classified as overtime and must be properly recorded and compensated. Under Hungarian law:
Overtime is generally paid with a 50% wage supplement, or
100% wage supplement if the overtime is performed on weekly rest days or public holidays, unless compensatory rest time is provided instead
Hungarian law also sets strict limits on overtime, typically capping it at 250 hours per year, with an extended limit of up to 300 hours only where agreed through collective bargaining or individual employee consent (commonly referred to as “voluntary overtime”).
Public Holidays and Employee Leave in Hungary
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
In Hungary, employees are entitled to paid leave on official public holidays, allowing time off to observe national and cultural events. Hungarian labour law also provides a comprehensive statutory leave framework designed to protect employee health, family life, and work–life balance.
Employees are entitled to paid annual leave, which consists of a base entitlement plus additional days that increase with age. The law also guarantees paid sick leave, maternity leave, paternity leave, and extended parental leave, with income support shared between employers and the Hungarian social security system.
In certain situations, employees may also receive special paid or unpaid leave for events such as marriage, bereavement, or personal matters, depending on statutory rules, employer policies, or applicable collective agreements.
Understanding Weekly Working Hours in Hungary
Explore Employment Contracts & Costs in Hungary
Explore Employment Contracts & Costs in Hungary
Explore Employment Contracts & Costs in Hungary
In Hungary, employment relationships are regulated by a clear legal framework that defines employee rights and employer obligations under Hungarian Labour Code. The default form of employment is an open-ended (indefinite-term) contract, and employers must register employees with the Hungarian tax authority (NAV) and the social security system from the start of employment.
Written employment contracts are mandatory and must clearly specify key terms such as job role, salary, working hours, place of work, and notice periods—especially for fixed-term, part-time, or specialised positions.
Types Of Employment
Hungarian labour law recognises several employment arrangements, including:
Permanent (indefinite-term) employees
Fixed-term employees, allowed only under legally defined conditions
Part-time employees
Temporary or seasonal workers
Agency workers, supplied through licensed staffing agencies
Independent contractors, engaged under civil law agreements and not covered by standard labour protections
Correct classification is essential, as misclassification can result in penalties, retroactive taxes, and unpaid social contributions.
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ICC classifications, labor leasing, and wage rules in Hungary
Labor Regulations & Independent Contractor Classification in Hungary
Labor Regulations & Independent Contractor Classification in Hungary
Labor Regulations & Independent Contractor Classification in Hungary
In Hungary, the distinction between an independent contractor (freelancer) and an employee is determined by the actual nature of the working relationship, not the contract title. Authorities assess factors such as subordination, control, working time dependency, use of tools, and economic risk.
Labor Leasing
In Hungary, labour leasing (munkaerő-kölcsönzés) is legal but strictly regulated. Only licensed temporary work agencies may assign workers to third-party companies. These agencies must comply with registration and reporting requirements, and workers are entitled to equal treatment in terms of pay and working conditions compared to comparable permanent staff at the host company.
Both the agency and the user company may face joint liability if labour or social security obligations are breached.
Minimum Wage Requirements
Hungary enforces a statutory national minimum wage, which applies across all sectors. The government sets and updates:
The minimum wage (minimálbér), and
A higher guaranteed minimum wage (garantált bérminimum) for jobs requiring secondary education or vocational qualifications
Employers must comply with the applicable statutory minimums, regardless of contract type. Collective agreements may set higher wage levels, but they cannot fall below the legal minimum.
How pay and health coverage apply during employee illness in Hungary
Medical Benefits in Hungary
Medical Benefits in Hungary
Medical Benefits in Hungary
In Hungary, employee health protection is an integral part of labour law, ensuring income security and job continuity during periods of illness through a combined employer–social security framework.
When an employee is unable to work due to a non-work-related illness or injury, the employer is required to pay sick pay for the first 15 working days per calendar year (táppénzes betegszabadság). During this period, the employee is entitled to 70% of their absence pay, funded directly by the employer.
Once the employer-paid sick leave is exhausted, income support is taken over by the Hungarian social security system, which provides sickness benefits (táppénz). These benefits are paid at a percentage of the employee’s average earnings, subject to statutory caps and medical certification requirements.
For work-related accidents or occupational illnesses, employees are entitled to enhanced protection, with accident-related sick benefits and medical treatment covered under Hungary’s mandatory occupational accident insurance system, financed through employer social contributions.
During certified sick leave, the employment relationship remains in force, and dismissal solely due to illness is restricted, providing employees with job protection while recovering.
Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Hungary
Probationary Periods & Termination Notice in Hungary
Probationary Periods & Termination Notice in Hungary
Probation Period in Hungary
In Hungary, employment contracts may include a probationary period (próbaidő), allowing both the employer and the employee to assess suitability for the role. The probation period must be explicitly agreed in writing and is subject to statutory limits.
Standard probation period: up to 3 months
Extension: may be extended once, but the total probation period cannot exceed 6 months
Applies equally to blue-collar and white-collar employees
During the probation period:
Either party may terminate the employment with immediate effect
No notice period and no severance pay apply
Termination must not be discriminatory or abusive
Termination Notice Periods After Probation in Hungary
Once the probation period ends, statutory notice periods apply and are primarily linked to the employee’s length of service.
Employer Notice Periods
Base notice period: 30 days
The notice period increases by 5 days for every 3 years of service, up to a maximum of 90 additional days
Maximum employer notice period: 6 months
Employee Resignation Notice
Employees must generally give 30 days’ notice
A longer notice period may apply if agreed in the employment contract or collective agreement
How termination compensation and background screening are regulated under Hungary labor law
Severance Pay & Pre-Hire Checks in Hungary
Severance Pay & Pre-Hire Checks in Hungary
Severance Pay & Pre-Hire Checks in Hungary
In Hungary, severance pay is calculated at the time of employment termination, not through ongoing employer contributions. Employees dismissed without lawful cause may be entitled to severance based on their length of service, with payments typically ranging from one to six months of average salary, as defined by the Hungarian Labour Code. In certain cases—such as termination close to retirement age—additional severance may apply. Final settlements also include unused annual leave and outstanding remuneration.
During recruitment, Hungarian employers are permitted to conduct limited background checks, including reviewing publicly available professional information. Any data collected must be directly relevant to the job role and handled in compliance with Hungary’s data protection regulations and the GDPR, ensuring transparency, proportionality, and non-discriminatory use of personal data.
