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Hungary is a central European country and member of the European Union. The official language 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, fuels, and electricity.

An employment contract in Hungary 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 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.

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

Employees receive 15 days of sick leave in Hungary, during which the employer pays a percentage of their wages. 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.

Female employees receive 24 weeks of maternity leave In Hungary, 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 caregiver 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.

Hungary has a minimum wage. 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 it at the end of the year.

Employees receive 20 days of paid annual leave in Hungary 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.

In Hungary, the public holidays are:

  • New Year's Day

  • 1848 Revolution Memorial Day

  • Good Friday

  • Easter Monday

  • Labor Day / May Day

  • Whit Monday

  • Hungary National Day

  • 1956 Revolution Memorial Day

  • All Saints' Day

  • Christmas Day

  • Second Day of Christmas

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

Either the employer or the employee may terminate an employment contract in Hungary. 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.

  • Partner with atlas logo

    Partnering with Atlas when expanding into Hungary can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.

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