
Quick facts

Hungary, located in Central Europe, has a rapidly developing economy primarily driven by manufacturing, especially in sectors like automotive, electronics, and pharmaceuticals. The country has been an attractive location for foreign investment due to its relatively low labor costs and central location. Hungary’s labor laws ensure employee protections, including comprehensive social security and health benefits.
In Hungary, employment contracts must be written and typically apply for indefinite periods. Fixed-term contracts are allowed but are limited to 5 years, including any extensions. A valid reason is required for contract renewal, ensuring it aligns with the employer's economic interests.
Probation periods in Hungary can last up to 3 months, although a 6-month probation period is permitted if outlined in a collective bargaining agreement.
Standard working hours are 8 hours per day and 48 hours per week. Employees must receive at least 11 hours of rest between workdays. For on-call roles, daily hours can extend up to 24 hours, and weekly hours up to 72 hours. Collective bargaining agreements typically set the rules for work hours and rest periods.
Employees are entitled to a minimum of 20 days of paid annual leave, with additional days granted based on age:
Employees in Hungary are entitled to 15 days of paid sick leave per year, during which they receive 70% of their normal salary. If sick leave coincides with a public holiday, payment is only made to hourly or output-based employees.
Wages are typically paid monthly by the 10th of the following month. The minimum wage in 2024 is HUF 266,800 (around EUR 600). Payments may be made via bank transfer or in cash, as stipulated in the employment contract.
Hungary observes 13 public holidays, including:
Employers contribute 15.5% of the employee’s salary toward social security and a 1.5% vocational contribution. These contributions cover health insurance, pensions, and other mandatory benefits.
Employees in Hungary pay the following:
The minimum notice period is 30 days, which may extend up to 90 days depending on the employee’s length of service. Fixed-term contracts may only be terminated if there are external circumstances or performance-related reasons that justify early termination.
Employment may be terminated by mutual agreement or unilaterally by either party. Employers must provide a valid reason for termination, while employees can resign without cause. Severance pay varies with the length of employment; for example, employees with 1-2 years of service are entitled to 1 month's salary as severance if terminated without notice.
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.
Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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