Hiring in Hungary: Complete Guide 2027
Everything you need to know about hiring and managing employees in Hungary
Overview
Hungary is the cheapest place in the EU to carry an employee: the employer pays 13% social contribution tax (szocho) on gross, no ceiling, nothing else. The employee pays more: 18.5% social security plus 15% flat income tax, both withheld monthly. The 2026 minimum wage is HUF 322,800, or HUF 373,200 where the job needs a qualification. The structural point for an EOR buyer: employing staff and placing them with a client is labour leasing under the Labour Code, so the provider needs a registration with the government office. An EOR fee of $400 to 650 a month often weighs more than the 13%.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Hungary
Hungarian payroll runs monthly, and wages are due by the 10th of the following month under the Labour Code. The employer registers with NAV for a tax number and reports each new hire on form T1041 before the first working day; the monthly '08 return carries every employee's tax and contributions by the 12th. Employer cost in 2026 is the 13% social contribution tax (szocho) on gross, no ceiling, and nothing else: the training levy was folded into szocho in 2022. The employee pays 18.5% social security contribution and 15% personal income tax, reduced by the family allowance and the exemption for workers under 25. The minimum wage under decree 426/2025 is HUF 322,800 a month, and the guaranteed minimum for jobs needing at least secondary education or a vocational qualification is HUF 373,200; a three-year wage agreement plans further steps for 2027. An EOR files the T1041, runs the monthly return, pays NAV and issues the payslip.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract required by the Labour Code
- Probation up to 3 months (6 by collective agreement)
- NAV T1041 filing before the first working day
Leave & Time Off
- 20 working days of annual leave, rising with age to 30
- 15 sick days a year at 70%, paid by the employer
- Maternity leave 24 weeks (CSED)
Termination Rules
- Written dismissal with clear reasons (section 66)
- 30 days' notice, up to 90 with tenure
- Severance of 1 to 6 months from 3 years' service
COMPLIANCE
Labour Leasing and Termination Rules in Hungary
An EOR in Hungary is a labour-leasing agency (munkaerő-kölcsönző) under chapter XVI of Act I of 2012, the Labour Code. The agency must be registered with the competent government office (kormányhivatal) under decree 118/2001 and lodge a financial deposit, and a lease to the same client company is capped at five years under section 214. Dismissal is written and must carry clear reasons (section 66). Notice starts at 30 days and grows with tenure to 90 days in total; the parties may agree up to six months. Severance under section 77 begins after three years' service at one month's absence pay and reaches six months at 25 years, with one tier more within five years of retirement age, and none where the dismissal is for conduct.
Key Challenges
- An EOR is a labour-leasing agency under the Labour Code and must be registered with the kormányhivatal
- Every hire reported to NAV on form T1041 before the first working day
- Two minimum wages: HUF 322,800, or HUF 373,200 for jobs needing a secondary or vocational qualification
- Severance from three years' service, up to six months' absence pay
- Non-EU hires need a work-related residence permit under the 2023 immigration act
Country Highlights
Advantages
- Employer on-cost of 13%, the lowest in the EU
- 15% flat income tax, zero for most employees under 25
- Budapest's business-service centres recruit in English and German every day
- Automotive and battery plants in Győr, Kecskemét and Debrecen feed a deep engineering pool
- 30-day base notice and a 3-month probation keep exits short
Popular Industries & Roles
Technology
Avg. Salary: HUF 9M-HUF 18M
Budapest's software teams work for Western European and US clients; senior engineers reach HUF 18 million a year on a 15% flat tax
Shared Services
Avg. Salary: HUF 7M-HUF 13M
Budapest hosts over 100 business-service centres staffed in English, German and French, from finance to IT support
Automotive & Manufacturing
Avg. Salary: HUF 8M-HUF 15M
Audi in Győr, Mercedes in Kecskemét and BMW in Debrecen anchor an engineering and battery supply chain
Top 3 Providers in Hungary
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Tilea Consulting
- Hungary EOR/PEO with forensic tax advisory
- Led by a certified international tax expert
- NAV audit representation, transfer pricing
- No published pricing; single-principal model
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Ranked #1 for compliance on G2
Frequently asked questions
Hiring in Hungary through an EOR, in short.
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How much does an employer pay on top of salary in Hungary?
Employer contributions in Hungary come to 13%; the largest mandatory line is Szocho 13%. With the other statutory benefits and a typical EOR fee, budget ~25–40% on top of gross salary.
What does an EOR charge per employee in Hungary?
Published EOR fees in Hungary run $400–650/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Hungary pay in tax and contributions?
Income tax is 15% flat and employee social contributions are 18.5% (18.5% TB-járulék), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Hungary?
2-5 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Hungary?
Tilea Consulting, Deel and Remote hold the first three places in our ranking for hiring in Hungary. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Hungary.
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