Country Information

Hungary is a central European country and member of the European Union. The official language spoken is Hungarian. Hungary hosts an impressive high-income mixed economy. Exports are a staple of the Hungarian market economy with increasing focus on foreign trade. Hungary’s exports include pharmaceuticals, machinery and equipment, food products, raw materials along with fuels and electricity.

Employment Contracts

An employment contract must be in writing. The contract must contain the employee’s base wage, job function, place of employment and term if the contract is intended to be for a fixed term. Any probation period must be stated in the contract. Employment contracts can be either indefinite or fixed-term contracts with a maximum term of five years. The term of a fixed-term contract may also be the completion of a specific task, rather than a set amount of time .A probationary period may not last longer than three months, including any extensions.

Working Hours

The standard workweek in Hungary is 40 hours or eight hours a day over five days per week.

Sick Leave

Employees receive 15 sick days per year, during which the employee is paid percentage of their wages by their employer. If the employee is sick for 16 days in one year, in most cases they can claim a social security benefit. The employee should provide a medical certificate from a doctor as soon as possible.

Maternity/Paternity Leave

Female employees receive 24 weeks of maternity leave, which begins four weeks before the birth. Eligible women are entitled to a maternity benefit equal to percentage of her average daily pay over the previous year. Most mothers will also be eligible for a birth grant, which is a one-time lump sum payment. In most cases, the child’s primary caretaker is eligible for another monthly social security payment, until the child turns two. Male employees receive five days of paternity leave (seven in the event of twins), which must be taken within two months of his child’s birth. Either parent may take unpaid leave upon request until their child reaches three years old. Employees adopting a child are entitled to the same allowances and benefits as biological parents.

Compensation

Bonuses are not required but employers may choose to include bonuses into employees’ compensation package. Employers who opt to pay employees a bonus, typically pay out the bonus at the end of the year.

Vacation Leave

Employees in Hungary receive 20 days of paid annual leave and between one and 10 additional days based on their age. Parents with children under the age of 16 receive two additional days of leave per child per year, up to a maximum of an additional seven days for parents with more than two children. Disabled employees and those who work in certain dangerous conditions are also entitled to additional leave.

Public Holidays

The following public holidays are observed in Hungary:

  • New Year’s Day
  • Revolution Day
  • Good Friday
  • Easter Monday
  • Labor Day
  • Whit Monday
  • Saint Stephen’s Day
  • Republic Day
  • All Saints’ Day
  • Christmas Day
  • Second day of Christmas
Health Insurance Benefits

Hungary has both public and private healthcare options. Employers may provide health insurance.

Employment / Termination / Severance

Either the employer or the employee may terminate an employment relationship with notice. The notice period starts at 30 days and increases based on years of service. The employer and the employee may, by agreement, extend the notice period by a maximum of six months. Once notified, an employee must be excused from work for a minimum of half the notice period, while receiving their regular pay. Severance is between one and six months depending on the employee’s length of service with the employer. Special procedures apply for collective redundancies.

Local Laws & Regulations

We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

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