Hungary at a glance
Taxes in Hungary
Employer Contributions
| Contribution | Rate |
|---|---|
| Total employer social tax | 13% |
| Social security | 13% |
| Contribution | Rate |
|---|---|
| Total employer social tax | 13% |
| Social security | 13% |
| Contribution | Rate |
|---|---|
| Total employee tax | 33.5% |
| Social security | 18.5% |
| Income tax (flat rate) | 15% |
Note: The 15% income tax rate does not apply to employees under 25 years of age.
Employer of Record in Hungary
How Remote& EOR Works
Standard EOR is not recognized in Hungary — a temporary agency licence is required. Remote& holds this licence, enabling compliant employment of Hungarian workers. We manage payroll, tax filings, statutory benefits, and employment contracts.
| Party | Role |
|---|---|
| Your Company | Directs work, manages performance, allocates tasks |
| Remote& | Holds temp agency licence; runs payroll, files taxes, ensures compliance |
| Employee | Works for your company under a locally compliant Hungarian contract |
Ask Remi:
"Hire a data scientist in Hungary — HUF 800,000/month, starting in two weeks" Remi handles everything: compliant contract, NEAK registration, payroll setup, and benefits enrollment.
Benefits in Hungary
- Medical examinations upon hire and periodically thereafter
- Occupational health and safety training (mandatory, employer-funded)
- Company social and cultural benefits
- Additional days off
- Supplementary health insurance
- Supplementary life insurance
- Cash bonuses
- Flexible and remote working
- Sports allowance
- Phone and internet allowance
- Meal benefits
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 20 days + public holidays + age-based additional days |
| Sick Leave | 15 weeks |
| Maternity Leave | 24 weeks |
| Paternity Leave | 10 working days |
| Parental Leave | 44 days until child is 3 years old (after 1 year continuous service; paid at 10% absence allowance) |
Employment conditions
Probation
Maximum probationary period: 3 months.
Non-Compete
Non-compete agreements must be in writing. Employees must receive compensation of at least one-third of their base salary for the duration of the restriction, since they are prevented from working in their field of expertise.
Employee Rights & Protections
Hungarian workers are entitled to: written employment agreement, personal data protection, harassment protection, safe and healthy working conditions, equal treatment, union membership and collective agreement rights, intellectual property protection, non-compete compensation, and dismissal protection.
Payments
End of employment in Hungary
Indefinite-term contracts may be terminated by:
- Mutual agreement — permitted at any time, no grounds required
- Dismissal notice — employer termination requires specific, documented grounds
- Immediate effect — for significant breach or impossibility of continuation; also usable during probation
Special protections apply for mass redundancies and certain protected employee categories. Statutory severance applies only to employees with more than 3 years of service. Unlawful dismissal disputes are resolved in competent Hungarian courts.
Frequently asked questions
Four approaches: run payroll from HQ; engage contractors for project-based work; establish a local entity for direct employment; or partner with a temporary agency licence holder like Remote&. The EOR model alone is not recognized in Hungary.