Hungary Employment Guide

Hungary Employment Guide

Hungary is in Central Europe, bordering Slovakia (north), Ukraine, Romania (east), Serbia, Croatia (south) and Austria (west). It has ~9.8 million people; Hungarian is official, and Budapest is the capital. Its economy focuses on services and manufacturing, with auto, electronics, IT and pharmaceutical industries playing key roles, while agriculture and tourism also contribute to economic development. Labor laws (per Labour Code of Hungary) protect wages, hours, leave and social security. Standard workweek: 40 hours (overtime needs extra pay or time off). Salaries are usually monthly (avg. HUF 550,000 pre-tax). Laws cover paid leave and protect contract/temp workers, balancing interests for a fair, flexible labor market.

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Currency

Hungarian Forint (HUF)

Capital

Budapest

Official language

Hungarian

Salary Cycle

Monthly

Our Employment Guide in Hungary

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Maternity Leave Policy in Hungary

Employees who have completed at least 365 calendar days of employment within the past two years are entitled to 24 weeks of paid maternity leave. A mandatory four-week period must be taken prior to the expected date of childbirth.

Compensation is provided at 100% of the employee's average monthly salary from the two years preceding childbirth, with payments administered directly by the State Treasury.

This leave period is fixed and cannot be extended under current regulations.

Paternity Leave Entitlements

Fathers meeting the same 365-day employment requirement are eligible for five days of paid paternity leave. Employers are responsible for salary payments during this period but can seek reimbursement from the State Treasury.

Similar to maternity provisions, this leave has a fixed duration without extension possibilities.

Understanding Parental Leave Options

Hungarian legislation does not specifically mandate parental leave beyond maternity and paternity provisions. Employees typically rely on these existing frameworks for child-related leave.

For comprehensive global workforce management, companies like SailGlobal offer integrated solutions that help navigate complex international leave regulations.

Sick Leave Regulations and Compensation

Employees are entitled to up to 15 days of paid sick leave annually, with pro-rated allocations for mid-year hires. Payment structures vary based on leave duration:

Leave PeriodPayment ResponsibilitySpecial Conditions
First 15 daysEmployerStandard illness
Beyond 15 daysState Treasury (70%) + Employer (30%)Standard illness
From day 1State TreasuryHigh-risk pregnancy, workplace injury, occupational disease including COVID-19

Practical Considerations for International Employers

Companies operating in Hungary should establish clear documentation procedures for leave requests. SailGlobal's case studies demonstrate that centralized tracking systems significantly reduce administrative burdens while ensuring compliance.

Notable examples include a German automotive manufacturer that streamlined its Hungarian operations by implementing standardized leave management protocols, resulting in 40% faster processing times.

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