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.
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.
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.
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 expertHungary
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How EOR in Hungary works: the process through TopSource
Employer Costs in Hungary at a Glance
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.
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:
- Hiring your first one to five people in Hungary
- Hiring developers or shared-service staff fast, without waiting on registrations
- Still validating the market before committing capital to an entity
- Working to a hiring deadline measured in weeks, not months
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.
“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.”
“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.”
“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.”
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
Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
Read more
Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
Read more
Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
Read more
Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
Read more
Key terms in Hungary
The Hungarian employment rules that come up most when you hire through an employer of record, each explained in our glossary.
Written Employment Information
tájékoztatási kötelezettség
The written notice of the main employment terms a Hungarian employer must give a new employee within seven days of the start.
Fixed-Term Employment Limits
határozott idejű munkaviszony
Fixed-term employment in Hungary is capped at five years, counting extensions and new contracts signed within six months.
Simplified Employment
egyszerűsített foglalkoztatás (EFO)
A light form of employment for seasonal and casual work, where the employer pays a flat daily levy instead of the usual payroll taxes.
Overtime Cap
rendkívüli munkaidő
Employers can order up to 250 hours of overtime a year, or up to 400 under a written or collective agreement.
Telework and Home Office Rules
távmunkavégzés
Remote work agreed in the employment contract, with default rules on control, office days and costs.
Additional Leave
pótszabadság
Extra paid leave on top of 20 base days, by age, for children under 16 and on other grounds.
Protected Periods and Dismissal Justification
felmondási tilalom
When an employer cannot dismiss, and why every dismissal needs a real, reasonable written reason.
Termination by Mutual Agreement
közös megegyezés
Ending employment on agreed terms in writing, with no statutory notice, reason or severance.
Non-Compete Agreement
versenytilalmi megállapodás
A written restriction of up to two years after employment, paid at least a third of base wage.
Works Council and Collective Agreements
üzemi tanács, kollektív szerződés
Employee representation above 15 staff, and union agreements that can change many Labour Code rules.
Guest Worker Permit and Single Permit
vendégmunkás, összevont engedély
Work permits for non-EU hires. New guest worker permits stopped on 6 June 2026; other routes remain.
Occupational Safety and Medical Aptitude Exam
munkaköri alkalmassági vizsgálat
Medical exams only where a law or the employer requires them, and safety training from the first day.
KATA and Contractor Misclassification
kisadózó vállalkozók tételes adója
The flat tax for sole traders, closed since 2022 to those who invoice companies, and the risk of misclassification.
Frequently asked questions
Hungary is simple and low-cost: total employer cost is gross salary plus the 13% social contribution tax (SZOCHO), so 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.
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%. The 13% rate has applied since 1 January 2022, when it was cut from 15.5%.
Hungary applies a flat 15% personal income tax to virtually all employment income, with 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.
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.
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 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, using an EOR to enter and an entity once the market is proven, and we transfer the team when the time comes.
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We help you legally employ and pay talent across 164 countries, so you can scale faster.
