Hungary Employment Guide

Understanding Hungary's Minimum Wage Structure

Hungary maintains a two-tier minimum wage system. The basic minimum wage stands at 266,800 HUF per month, while positions requiring secondary education or vocational qualifications command a higher guaranteed minimum of 326,000 HUF monthly.

Personal Income Tax Framework

Hungary employs a straightforward flat tax system for personal income, with a uniform rate of 15% applicable to all taxpayers.

Comprehensive Employment Cost Analysis

Employers should anticipate additional costs averaging approximately 13% of the employee's gross salary. This primarily consists of social security contributions. Beyond this percentage, a fixed employer contribution of 15,700 HUF applies.

One-Time and Recurring Expenses

• Initial Costs: Pre-employment medical examinations typically cost around 17,800 HUF.
• Ongoing Liabilities: Companies are subject to local business taxes, which municipalities can levy up to 2% of turnover. An additional 0.3% innovation contribution may also apply. These taxes are calculated on the company's total turnover, including payroll expenses for outsourced staff in Hungary. Local business tax payments are due semi-annually in March and September.

These figures serve as general estimates. For a precise calculation tailored to your specific employment agreements, consulting with SailGlobal's HR specialists is recommended.

Overtime Regulations and Maximum Working Hours

The standard work schedule in Hungary is defined as 8 hours per day and 40 hours per week, typically from Monday to Friday.

Overtime Compensation

Overtime work is strictly regulated and compensated. Employees may work a maximum of 4 hours of overtime per day and 8 hours per week. Compensation premiums are mandatory: a 50% supplement for overtime on regular workdays, doubling to 100% for work on public holidays and weekends. If a day off in lieu is provided for weekend work, a 50% premium still applies.

Case Study: Manufacturing Sector

For instance, a manufacturing company utilizing weekend shifts must budget for the 100% overtime premium or manage schedules to provide compensatory rest, which still incurs a 50% cost. Proper planning with a service like SailGlobal can help optimize these schedules for compliance and cost-efficiency.