--- title: "Hungary" id: "15199" type: "employer-of-record" slug: "hungary" published_at: "2025-08-12T11:17:40+00:00" modified_at: "2026-09-23T15:41:48+00:00" url: "https://topsourceworldwide.com/employer-of-record/hungary/" markdown_url: "https://topsourceworldwide.com/employer-of-record/hungary.md" taxonomy_continent: - "Europe" --- # Employer of Record in Hungary Employ in Hungary without an entity — the 13% social contribution tax, flat 15% income tax and compliant payroll handled by local specialists. [Get Started](https://topsourceworldwide.com/contact-us/) ## Why hire in Hungary through an EOR Hungary is one of the EU’s simplest and most affordable markets to employ in: a single 13% employer social contribution tax (SZOCHO) on top of gross, a flat 15% personal income tax, and no stacked contribution lines. The nuances sit in dismissal rules and generous tax reliefs. Through an EOR, all of it is already running. ### No entity required Employ staff in Hungary, one of 164 countries we cover, without registering a Hungarian Kft. and maintaining a local company. ### One employer tax: 13% SZOCHO The employer’s only standard contribution is the 13% social contribution tax (SZOCHO) on gross salary — one clean figure, no stacked lines. Total employer cost is simply gross plus 13%. ### Flat 15% income tax, handled Hungary applies a flat 15% personal income tax and an 18.5% employee social contribution, both withheld at source. We calculate gross-to-net correctly, including the generous tax reliefs. ### Tax reliefs applied correctly Under-25s pay no income tax up to the average wage; the family allowance doubled in 2026. We apply every relief the employee qualifies for so their net pay is right. ### Working in days, not months We register the employment before day one — your hire can be working in Hungary in days, while an entity setup would still be weeks away. ## Hire in Hungary without setting up an entity Hungary is one of the most cost-effective and administratively simple places to employ in the EU. The employer pays a single 13% social contribution tax (SZOCHO) on top of gross salary — one figure, not a stack of separate contribution lines — and personal income tax is a flat 15%. Total employer cost is essentially gross plus 13%, which makes budgeting refreshingly predictable. The complexity is elsewhere: Hungary is not an at-will jurisdiction (dismissal needs a valid, stated reason with notice and severance scaling by tenure), and the tax system carries generous reliefs that must be applied correctly — under-25s pay no income tax up to the average wage, and the family allowance doubled in January 2026. An Employer of Record removes the setup and the risk: TopSource employs your Hungarian hires with SZOCHO and the flat tax calculated correctly, every eligible relief applied, and dismissals run by people who know the Labour Code. Hire into Hungary fast and cost-effectively. [Talk to our Hungary team](https://topsourceworldwide.com/contact-us/) ## Calculate Your Employee Costs in Hungary Enter a gross salary to see the full monthly cost of a hire in Hungary — the 13% employer SZOCHO and the employee’s flat-tax gross-to-net in one view. ##### Employment Cost Calculator *Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/) ##### Hungary Annually Monthly | | British Pound | Hungary | | --- | --- | --- | | Base Salary (per month) | | | | Employer Contributions | | | | Total Cost (Annual) | | | | Total Cost (Monthly) | | | Employer of Record services in [Learn more](#) Payroll Outsourcing in [Learn more](#) ## How EOR in Hungary works: the process through TopSource Step 1 ### Confirm the role and structure We agree the position, salary and benefits with you — quoted in gross — and confirm which tax reliefs the employee qualifies for (under-25, family allowance and others). Step 2 ### Issue a compliant contract Your new hire receives a written employment contract in Hungarian under the Labour Code, with probation, notice, leave and the correct minimum or guaranteed minimum wage clearly set out. Step 3 ### Register the employment We register the employee with the tax authority (NAV) before work begins — the pre-employment report is a strict requirement — and set up monthly declarations. Step 4 ### Run payroll We calculate salary, the 13% employer SZOCHO, the employee’s 18.5% social contribution and 15% flat income tax, apply eligible reliefs, and can administer SZÉP Card and other tax-efficient benefits. Step 5 ### Support the relationship day to day Your account manager and the employee both have a direct line for contract questions, leave, benefits and — when needed — a termination run correctly under the Labour Code, costed before you decide. ## Know your Hungary hiring costs before you commit Tell us the role and salary — we’ll send back the full Hungarian employment cost, SZOCHO and gross-to-net included, within one business day. [Get a Custom Employment Quote](https://topsourceworldwide.com/contact-us/) ## Employer Costs in Hungary at a Glance 13% Employer social contribution tax (SZOCHO) — the only standard employer cost HUF 322,800 Monthly minimum wage from 1 January 2026 15% Flat personal income tax rate ## Employer Costs in Hungary Explained Hungary keeps employer costs simple: the employer pays a single 13% social contribution tax (SZOCHO) on top of gross salary, with no separate contribution lines — total employer cost is roughly 113% of gross. Employees pay a flat 15% personal income tax and an 18.5% social contribution, both withheld at source. The minimum wage is HUF 322,800 per month from January 2026 (HUF 373,200 guaranteed minimum for skilled roles). Here’s the breakdown. #### The one employer tax: 13% SZOCHO Hungary’s headline simplicity is real: the employer’s only standard contribution is the social contribution tax (SZOCHO) at 13% of gross salary, paid entirely by the employer on top of gross. There are no separate pension, health or unemployment lines on the employer side — they’re bundled into the one figure. So total employer cost is simply gross plus 13% (about 113% of gross). For ordinary employment income there is effectively no cap that changes this for most salaries, which makes cost projections unusually clean. This replaced the old 22% employer rate, materially lowering the cost of hiring in Hungary. #### Employee taxes: the flat 15% and 18.5% On the employee side, Hungary applies a flat 15% personal income tax to virtually all employment income, plus an 18.5% social security contribution (TB) — both withheld at source through payroll. The combined employee burden is around 33.5% of gross before reliefs, leaving roughly two-thirds as net pay. The flat structure, with no progressive brackets, makes net-pay calculations simple and predictable, and is a genuine selling point when presenting offers to Hungarian candidates used to the system. #### Generous tax reliefs (under-25, family allowance) Hungary’s reliefs are among Europe’s most generous and materially change net pay. Employees under 25 pay zero personal income tax on income up to the national average wage — a powerful advantage when hiring early-career talent. The family allowance, which reduces the income-tax base (and unused amounts can offset social contributions), was doubled from January 2026: the monthly deduction is HUF 133,340 for one child, HUF 266,660 for two, and HUF 440,000 per child for three or more. Applying every relief the employee qualifies for is part of running Hungarian payroll correctly, and we do it as standard. #### Dismissal, notice and severance Hungary is not an at-will jurisdiction. Terminating an employee requires a valid, stated reason under the Labour Code, with statutory notice of at least 30 days that lengthens with tenure, and severance payable from three years of service, also scaling with length of service. Getting the grounds and procedure right matters — as does the calculation. Benefits like the SZÉP Card (a tax-efficient cafeteria benefit with a concessional effective rate within an annual ceiling) are widely expected and worth structuring into packages. We handle the reliefs, the benefits and any exit correctly. ## EOR or entity setup: which one fits your Hungary plan? Registering a Hungarian Kft. is achievable, but it creates NAV registration, monthly declarations, Hungarian-language documentation and a formal dismissal regime that don’t disappear when plans change. An EOR makes sense while you’re testing the market or building a first team; your own entity usually makes sense once Hungarian headcount and permanence justify running that machinery yourself. ### Consider an EOR if you’re: 1. Hiring your first one to five people in Hungary 2. Hiring developers or shared-service staff fast, without waiting on registrations 3. Still validating the market before committing capital to an entity 4. Working to a hiring deadline measured in weeks, not months [Get a cost comparison](https://topsourceworldwide.com/contact-us/) ## Why TopSource for Employing in Hungary TopSource for Employer of Record, global payroll or any other of our services represent a simpler, more reliable and transparent option. We don’t hide fees or sneak price increases. We don’t lock you in for employees you don’t use. But we do give you a dedicated point of contact, available on the phone so you get answers fast — including on the questions Hungary raises, from applying the under-25 and family reliefs to what a compliant dismissal actually requires. We blend HR advisory with in-market expertise, and we stay flexible around the needs of your business. [EOR Services](https://topsourceworldwide.com/employer-of-record/) [Hungary Payroll](https://topsourceworldwide.com/global-payroll/hungary/) > “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.” Director of Research Operations, > “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.” Chief Human Resources Officer, > “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.” Senior Manager, Human Resources , ## More than an Employer of Record. Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets. ##### Market Selection Advisory Compare available talent, compensation, additional costs and regulations across different countries [Read more](https://topsourceworldwide.com/hr-advisory/market-selection-advisory/) ##### Salary Benchmarking Identify and prioritize markets for growth based on talent, cost & regulations [Read more](https://topsourceworldwide.com/hr-advisory/salary-benchmarking/) ##### Global Skills Analysis Map skill availability by region to align talent strategies with business goals.. [Read more](https://topsourceworldwide.com/hr-advisory/global-skills-analysis/) ##### Talent Acquisition Find, hire & onboard the highly skilled team members you need in each locality. [Read more](https://topsourceworldwide.com/talent-acquisition/) ##### Talent Strategy Optimization Optimize your talent strategy to enable your organization to achieve it’s global ambitions. [Read more](https://topsourceworldwide.com/hr-advisory/talent-strategy-optimization/) ##### Global Benefits Review Benchmark your global benefits to boost employee retention. [Read more](https://topsourceworldwide.com/hr-advisory/global-benefits-review/) ## Frequently asked questions ### What does an employee in Hungary actually cost? Hungary is simple and low-cost: total employer cost is gross salary plus the 13% social contribution tax (SZOCHO) — roughly 113% of gross, with no separate contribution lines. The employee’s 15% flat income tax and 18.5% social contribution are withheld from gross. We quote the exact all-in figure per hire before you commit. ### What is SZOCHO? SZOCHO is Hungary’s social contribution tax — the employer’s single standard contribution, charged at 13% of gross salary and paid entirely by the employer on top of gross. It bundles what other countries split into pension, health and unemployment lines, so total employer cost is simply gross plus 13%. It replaced the older 22% rate, making Hungary notably cheaper to hire in. ### Why is Hungary’s income tax so simple? Hungary applies a flat 15% personal income tax to virtually all employment income — no progressive brackets — plus an 18.5% employee social contribution, both withheld at source. The combined employee burden is about 33.5% of gross before reliefs. The flat structure makes net-pay calculations predictable, which candidates appreciate. ### What tax reliefs should we know about when hiring in Hungary? Two stand out. Employees under 25 pay no personal income tax on income up to the national average wage — a strong advantage for early-career hires. And the family allowance, which reduces the tax base, doubled from January 2026 (HUF 133,340 for one child, up to HUF 440,000 for three or more). We apply every relief the employee qualifies for so their net pay is correct. ### How does termination work in Hungary? Hungary is not at-will. Dismissal requires a valid, stated reason under the Labour Code, with statutory notice of at least 30 days that increases with tenure, and severance payable from three years of service, scaling with length of service. Because grounds and procedure both matter, we run every termination through the correct steps and cost it before you decide. ### EOR or our own Hungarian entity — which should we choose? EOR wins on speed and simplicity: employees working in days, NAV registration and monthly declarations handled, reliefs applied, exits run correctly. Your own Kft. wins on scale once Hungarian headcount and permanence are certain. Many clients run both in sequence — EOR to enter, entity once proven — and we transfer the team when the time comes. [Couldn’t find what you were looking for?](/contact-us/) ## Hire Anywhere with Our EOR Services We help you legally employ and pay talent across 164 countries—so you can scale faster. 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[Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/employer-of-record/solomon-island/) [South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/employer-of-record/south-korea/) [South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/employer-of-record/south-sudan/) [Sri Lanka Capital: Colombo Currency: Rupee](https://topsourceworldwide.com/employer-of-record/sri-lanka/) [St-Maarten Capital: Philipsburg Currency: Caribbean Guilder](https://topsourceworldwide.com/employer-of-record/st-maarten/) [Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/employer-of-record/sudan/) [Suriname Capital: Paramaribo Currency: Surinamese Dollar](https://topsourceworldwide.com/employer-of-record/suriname/) [Sweden Capital: Stockholm Currency: Swedish Krona](https://topsourceworldwide.com/employer-of-record/sweden/) [Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/employer-of-record/taiwan/) [Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/employer-of-record/thailand/) [Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago Dollar](https://topsourceworldwide.com/employer-of-record/trinidad-tobago/) [Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/employer-of-record/tunisia/) [Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/employer-of-record/uganda/) [United Kingdom Capital: London Currency: Pound Sterling](https://topsourceworldwide.com/employer-of-record/united-kingdom/) [US Virgin Island Capital: Charlotte Amalie Currency: United States Dollar](https://topsourceworldwide.com/employer-of-record/us-virgin-island/) [Venezuela Capital: Caracas Currency: Venezuelan Bolívar](https://topsourceworldwide.com/employer-of-record/venezuela/) [Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/employer-of-record/zambia/) [Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/employer-of-record/zimbabwe/) Load more