Personal income tax in Hungary is levied at a flat rate of 15% on taxable gross income.
There are no local taxes on employment income in Hungary.
| Contribution Rate | |
|---|---|
| Employer's Social Tax | 13% |
| Contribution Rate | |
|---|---|
| Employee's Social Tax | 18.5% |
Any wages due to the employee must be paid at least once a month, and by the 10th of the month after the payment becomes due.
Effective January 1, 2024, the minimum wage is Hungary is set at HUF 266,800 per month, and the guaranteed minimum wage for professional workers in jobs requiring at least secondary level qualifications or vocational training is HUF 326,000 per month.
There are no statutory bonus requirements in Hungary.
Employers in Hungary are generally not required to justify ordinary dismissals (felmondás), though they do need to observe the prescribed notice periods. However, despite not being required to justify ordinary dismissals, employees have the right to request for such explanation in writing.
Some valid reasons for dismissal include reasons relating to the employee's misconduct or incompetence, or other reasons related to the employer's operational needs. Employees who are dismissed for disciplinary reasons must generally be given the opportunity to defend themselves before any final decisions are made.
The parties can determine the consequences for any infringement of obligations, provided that the disciplinary sanctions are consistent with the gravity of the infringement.
Employers should gather and assess the specific evidence before imposing any disciplinary sanction, and they shall not violate the employee's dignity and rights as a person. In any case, disciplinary sanctions shall be imposed no later than a year after the breach.
In the event of a termination, the terminating party must observe a 30-day notice period. In the case of dismissals, additional notice period is due depending on the their length of service, as follows:
| Length of service | Additional notice period |
|---|---|
| 3–5 years | 5 days |
| 5–8 years | 15 days |
| 8–10 years | 20 days |
| 10–15 years | 25 days |
| 15–18 years | 30 days |
| 18–20 years | 40 days |
| After 20 years | 60 days |
Employees being dismissed with notice are entitled to take half the period off work without any reduction in wages.
Employers can dismiss employees with immediate effect only in the event of significant breaches of any substantial obligations, gross negligence and other reasons that make the continuance of the employment impossible. Such termination may be exercised within 15 days of gaining knowledge of the grounds therefor, in any case within no more than a year of the occurrence of such grounds or, in the event of a criminal offense, up to the statute of limitation for criminal liability.
Employees who have at least 3 years of service are entitled to receive the following severance:
| Length of service | Severance |
|---|---|
| 3–4 years | 1 month's pay |
| 5–9 years | 2 months' pay |
| 10–14 years | 3 months' pay |
| 15–19 years | 4 months' pay |
| 20–24 years | 5 months' pay |
| 25 years and over | 6 months' pay |
In addition to the above, employees who are terminated within 5 years of reaching the retirement age shall be entitled to the following:
| Length of service | Additional severance |
|---|---|
| 3–9 years | 1 month's pay |
| 10–19 years | 2 months' pay |
| 20 years and over | 3 months' pay |
Parties to an employment contract may include in it a probationary period of up to 3 months. This period can be extended only once, provided that the total duration of the probation does not exceed 3 months.
Either party can immediately terminate the employment contract during the probationary period.
Standard working hours in Hungary is subject to a maximum of 8 hours per day. Moreover, no employees shall work more than 48 hours per week, inclusive of overtime.
Employees working over 6 consecutive hours are entitled to a minimum of 20 uninterrupted minutes of unpaid break from work. If the duration of work exceeds 9 hours, an additional 25 minutes of unpaid break must be given to the employee.
Employees can be provided with a break period after 3 hours of work, but before the completion of 6 hours of work.
Moreover, a nursing employee shall be entitled to the following breastfeeding breaks:
| Duration of break | Period of validity | |
|---|---|---|
| Single births | 1 hour, twice a day | First 6 months of breastfeeding |
| Multiple births | 2 hour, twice a day | First 9 months of breastfeeding |
Employers may require employees to work up to 250 hours of overtime per year (+150 hours there is a written agreement to this effect).
In any case, no employees shall be required to work more than 12 hours per day or 48 hours per week, inclusive of overtime.
Employees are entitled to a 50% premium over their regular rate of pay for overtime work, and employers can take up to 36 months to settle payments of accrued overtime.
Employees are entitled to 2 rest days per week or at least an average of 48 hours of weekly rest. One of the rest days shall include a Sunday, except for part-time employees who work on Saturdays and Sundays only.
Employees required to work on a Sunday shall be entitled to a 50% premium over their regular rate of pay. For overtime work performed on weekly rest days, an employee shall be entitled to a 100% premium over their regular rate of pay or a 50% premium, plus a compensatory rest day.
Compensatory rest day shall be provided at the latest in the following month from when the overtime work was performed.
Employees may be required to work on public holidays only if they are employed seasonally, the employer operates on a continuous basis or the nature of the business makes it necessary. There are 11 days of public holidays in Hungary for 2024.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Revolution Day | March 15 |
| Good Friday | March 29 |
| Easter Monday | April 1 |
| Labor Day | May 1 |
| Whit Monday | May 20 |
| Saint Stephen's Day | August 20 |
| Republic Day | October 23 |
| All Saints' Day | November 1 |
| Christmas Day | December 25 |
| Boxing Day | December 26 |
Employees who perform work on a holiday must be entitled to a 100% premium over their regular rate of pay. For overtime work performed on a public holiday, an employee shall be entitled to a 100% premium over their regular rate of pay or a 50% premium, plus a compensatory rest day.
The basic annual leave entitlement is 20 working days, with additional annual leave being granted according to the employee's age.
| Employee's age | Additional leave |
|---|---|
| 25 | 1 day |
| 28 | 2 days |
| 31 | 3 days |
| 33 | 4 days |
| 35 | 5 days |
| 37 | 6 days |
| 39 | 7 days |
| 41 | 8 days |
| 43 | 9 days |
| 45 | 10 days |
Furthermore, depending on the employee's circumstances, they may be entitled to more leave days, as follows:
| Circumstance | Additional leave |
|---|---|
| Employees under 18 year old | 5 days |
| Employees with children under 16 years old or disabled | 2, 4 or 7 days, depending on the number of children |
| Employees permanently working underground or spending at least 3 hours a day on a job exposed to ionizing radiation | 5 days |
| Employees receiving disabled or blind benefits and employees with at least 50 percent disability | 5 days |
With the exception of the first 3 months of service, employers shall allocate 7 working days of the annual leave in not more than 2 parts, at the time requested by the employee. The employee shall notify the employer of such request at least 15 days in advance.
Annual leave shall be granted in the year in which it is due, though if this is not possible due to reasons beyond the employer's control, it must be taken within 60 days after the cause is remedied.
Note: Unless otherwise agreed, annual leave shall be allocated to contain at least 14 consecutive days once in a calendar year, where the employee is exempted from the requirement of availability and from work duty.
An employee is entitled to 15 working days of sick leave per year for times when they are incapable of working due to illness or due to endangered pregnancy. They shall receive 70% of their wages from their employers during their leave.
A pregnant employee is entitled to 24 weeks of unpaid maternity leave, of which the employee is obliged to take 2 weeks, commencing 4 weeks prior to childbirth.
| Termination of maternity leave | Transfer of maternity leave to the other parent |
|---|---|
| If the child is stillborn | Maternity leave shall be granted to a parent who cares for a child on the basis of an enforceable court judgment or an enforceable guardianship decision due to the mother's state of health or death. |
| On the 15th day after the child's death, provided that the child dies during maternity leave | |
| The day following the day when the child is transferred to a welfare institution for over 30 days |
In the event that maternity leave is terminated for the reasons above, the duration of the maternity leave cannot be less than 6 weeks following the birth.
Note: If the child is cared for in an institution for premature infants, the unused part of the maternity leave may be taken within up to a year after the birth of the child.
Employees are entitled to up to 10 working days of paid paternity leave to care for a child, which can also be taken if his child is stillborn or dies.
This leave can be taken no later than the end of the second month following the birth of the child or, in the case of adoption, no later than the end of the second month following the decision authorizing the adoption to become final.
The employee on paternity leave is entitled to be paid as follows:
| Paternity leave pay | |
|---|---|
| Days 1–5 | 100% of regular wage |
| Days 6–10 | 40% of regular wage |
Employees with at least a year of service are entitled to take up to 44 working days of parental leave for each child until they reach 3 years old. Both parents are entitled to this leave.
The employee can decide when they want to avail their leaves and must submit a request at least 15 days before the intended start date to their employer.
During their parental leave period, the employee shall be entitled to receive pay at a rate of 10% of their regular salary.
Employees are exempt from their obligations to make themselves available for work for the following reasons:
| Reason for absence | Duration | Note |
|---|---|---|
| Blood donation | At least 4 hours | - |
| Justified personal, family or unavoidable reasons that deserve special considerations | As required | - |
| Mandatory medical examination | As required | - |
| Preparation for adopting a child | 10 working days per year |
This is granted within 90 days of the issuance of a certificate from the adoption facilitating organization. Employees must notify their employers of their intended absence 5 days in advance. |
| Provide firefighting services | As required | - |
| Provide personal care to sick relatives or dependents | 5 working days per year | Can be taken in 2 installments at most |
| Summoned by a court or authority, or for personal participation, in legal proceedings | As required | - |
| The continuation of primary school studies or training | As required | - |
| The death of a relative | 2 working days | - |
For the purpose of determining an employee's entitlement to the leaves above, a "relative" may include the employee's spouse or life partner, consanguineous relatives, adopted child, stepchild and foster child; stepparent and foster parent, sibling, consanguineous relative's spouse, spouse's consanguineous relatives and sibling, and brother's spouse.
Aside from the above, employees may also be entitled to the following leaves without pay, provided that they make a written request to their employers at least 15 days in advance:
| Reason for absence | Duration |
|---|---|
| Taking care of a child until the child is 3 years old | - |
| Taking care of a child over 3 years of age | Shall remain valid until the child reaches 10 years of age, under the term of childcare allowance |
| Taking care of an adopted child | 3 years from the initial date of placement of the child under care, or 6 months if the child is over 3 years old |
| Receiving child-care benefits | For the duration of the benefit |
| Volunteer reservist military service | For the effective period of service |
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