TL;DR, Hiring in Hungary
- Fully-loaded employer cost: 13% flat (szociális hozzájárulási adó), no cap, no brackets
- Vocational training contribution absorbed into the 13% rate from 2022
- Strict Labour Code (Act I of 2012) — termination requires written justification
- 9% flat personal income tax + 18.5% employee social — among lowest gross-to-net wedges in EU
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Statutory employer costs in Hungary
In Hungary, the employer's only statutory contribution is the szociális hozzájárulási adó (social contribution tax) at a flat 13% of gross salary, with no cap and no brackets. The vocational training contribution was absorbed into this rate in 2022. Severance under the Labour Code is tenure-stepped (1–6 months) and applies only to employer-initiated dismissal of indefinite-term contracts.
| Contribution | Employer rate | Notes |
|---|---|---|
| Szociális hozzájárulási adó (social contribution tax) | 13.0% | Flat, no cap, no brackets. Covers pension, health, unemployment, and family-support funds in a single combined levy since 2019. |
Mandatory employee benefits
Beyond statutory contributions, Hungary law requires the following benefits the employer must fund.
- Annual leave
- Base 20 days, rising by age: +1 day at 25, scaling to +10 days at 45+ (so 30 days total at age 45+). Plus additional days for parents (+2 for one child, +4 for two, +7 for three+).
- Public holidays
- 11 statutory days. If a holiday falls on Tuesday/Thursday, government may decree bridging Saturday work-day swaps.
- Sick pay
- Days 1–15: employer pays 70% of absent-day base salary. From day 16: state covers 60% (or 50% if hospitalised) up to 1 year per illness.
- Cafeteria benefit (SZÉP card)
- Tax-advantaged employer benefit up to HUF 450k/year (2025) loaded onto SZÉP card (split across hospitality, accommodation, recreation sub-accounts). Near-universal in white-collar offers.
Termination, notice and severance
Probation
Maximum 3 months (extendable to 6 months by collective bargaining agreement). Either party may terminate without reason during probation.
Notice period
Minimum 30 days, extended by tenure under Labour Code §69: +5 days at 3 years, +15 at 5, +20 at 8, +25 at 10, +30 at 15, +40 at 18, +60 at 20 years. So a 20-year veteran requires 90 days' notice.
Severance
Statutory severance under §77 applies only to employer-initiated dismissal of indefinite contracts after 3+ years tenure: 1 month at 3 years, 2 at 5, 3 at 10, 4 at 15, 5 at 20, 6 at 25 years. Doubled if employee is within 5 years of retirement age. No severance for employee resignation or termination by mutual agreement.
Common compliance pitfalls
- Labour Code §66 requires that any termination of an indefinite contract include a clear, written justification (real, reasonable, demonstrable). Vague reasons like 'restructuring' without supporting documentation are routinely overturned by Munkaügyi Bíróság (labour court).
- Hungary has unusually long tenure-based notice periods. A 20-year hire requires 3 months' notice plus 6 months' severance — 9 months of total wages on exit. EOR users should model this for senior hires.
- SZÉP card cafeteria benefit is not statutory but baked into market expectations. Offers without it lose to direct hires from competitors.
- Foreign-currency salaries: contracts denominated in EUR or USD are legal but social-security contributions must still be calculated and remitted in HUF using the MNB official rate on the payday. FX volatility creates contribution-base drift that EORs sometimes mis-handle.
Frequently asked questions
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.