Our Expertise
Managing a global workforce in Hungary
Managing a workforce in Hungary presents unique challenges due to the country's specific labour laws and employment practices. Adherence to the Hungarian Labour Code, social security regulations, and tax obligations under the Personal Income Tax Act is essential for businesses operating in Hungary. TopSource Worldwide, with our extensive experience in global employee management, provides vital support to companies in Hungary, ensuring accurate, compliant, and efficient workforce management.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in Hungary
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Hungary. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Hungary-based employees.
End-to-end Hungary payroll services
Looking to expand into Hungary? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Hungary expansion initiatives.
Global entity management
Venturing into the Hungarian market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in Hungary
Entering the Hungarian market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Hungary.
Hungary Insights
Key insights into Hungary's landscape
VAT rates: Hungary has a standard Value Added Tax (VAT) rate of 27%, with reduced rates of 18% and 5% for specific goods and services.
Ease of Doing Business rank: Hungary ranks 52nd in the World Bank's Ease of Doing Business Index, indicating a moderately favourable business environment.
Consumer Confidence Index: As of 2022, Hungary's Consumer Confidence Index was 69.3, reflecting cautious economic sentiment.
Employee maternity/paternity leave: Maternity leave is 24 weeks, and paternity leave is 5 days, providing support for new parents in the workforce.
Employee termination period: Standard notice for termination varies but is typically 15 to 30 days, depending on employment contract terms and length.
Employee salary pay date: Wages are usually paid monthly, with specific pay dates outlined in employment contracts and subject to labour laws.
Bank holidays: Hungary observes public holidays, including two Revolution Memorial Days, National Day, and Christmas, with a total of around 12 public holidays in a year.
Country guidelines
With the exception of work performed abroad, all wages shall be established and paid in Hungarian forints.
Registration has to be made at the latest on the day the employee starts at the workplace but before the commencement of their work.
In the employment contract, the parties may stipulate a probationary period of not more than three months from the date of commencement of the employment relationship. In the event that a shorter probationary period has been stipulated, the parties may extend the probationary period once. In either case, the duration of the probationary period may not exceed three months (there’s no minimum prescribed in the law).
No extension is permissible after three months have been reached.
During the probationary period, the employer and the employee have the right of termination without notice.
The period of notice is 30 days.
The notice period shall begin at the earliest on the day following the date when dismissal is communicated. However, certain cases such as incapacity to work due to illness may delay the first day of the notice period.
Where employment is terminated by the employer, the 30-day notice period shall be extended:
- by five days after three years
- by 15 days after five years
- by 20 days after eight years
- by 25 days after 10 years
- by 30 days after 15 years
- by 40 days after 18 years
- by 60 days after 20 years of employment with the employer
By agreement of the parties, the notice periods may be extended by up to six months.
Pursuant to the Hungarian Labor Code, ‘daily working time’ shall mean the duration of working time fixed by the parties or specified by employment regulations for:
a) Full-time jobs; or
b) Part-time jobs
The daily working time in full-time jobs is eight hours.
The scheduled daily working time of an employee may not be less than four hours, with the exception of part-time work.
According to the work schedule:
- The daily working time of employees shall not exceed 12 hours
- The weekly working time of employees shall not exceed 48 hours
In a given calendar year, 250 hours of overtime work can be ordered.
In addition to the 250 hours, a maximum of 150 hours of overtime work can be ordered in a given calendar year subject to a written agreement between the employee and the employer.
If the employer requests the employee to perform overtime, then additional compensation is payable.
The parties may agree a salary which is inclusive of the compensation for the overtime. The parties may also stipulate a fixed monthly payment covering regular wages and wage supplements as well. In this case, if one hour overtime is requested, we would still need to pay the proportionate basic salary and the relating supplement.
This means that the overtime still has to be counted and (the proportionate salary) paid.
Employees who are ill are entitled to 15 days’ sick leave per year and receive 70% of their salary met by the employer. After these 15 days, the employee may receive a minimum of 50–60% of the base salary: two-thirds of this will be paid by the government, with the rest falling to the employer.
New mothers receive 24 weeks of maternity leave, at a minimum of 70% of their base salary. They may also take up to three years off and receive maternity benefits. Fathers are entitled to five days of paternity leave, which can be taken in the first two months following the birth.
Our author
Mark Robbins
Global Sales Director
Mark is the Sales Director at Topsource Worldwide. He has been a pioneering figure in the global expansion space since 2013. He is the first salesperson to sell EOR services in Europe, a feat he accomplished in 2013.
Published 2023-11-14 00:00:00
Updated 2023-11-15 00:00:00
Reviewed by:
Adrian Cooney
Fact checked by:
Adrian Cooney
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