Employer of Record (EOR) in Hungary: How to Hire, What It Costs, and How to Stay Compliant

An Employer of Record (EOR) in Hungary lets a foreign company hire Hungarian employees legally without opening a local company. The EOR becomes the legal employer — running payroll in forints, withholding tax, and paying contributions — while you keep operational control. Hungary is attractive on cost: employer on-costs are low (only 13% on top of gross, about 113% all-in), income tax is a flat 15%, and generous family and youth exemptions can make many employees’ pay entirely income-tax-free.

Hungary offers a skilled, cost-competitive workforce in the heart of Central Europe. It is an EU member but not in the eurozone, so payroll runs in Hungarian forints. An EOR is a fast, low-risk way to enter the market — handling contracts, payroll, and statutory reporting while you focus on operations.

Key benefits of hiring in Hungary through an EOR

• No need to register a Hungarian company
• Full compliance with Hungarian labour law and payroll rules
• Fast, low-risk market entry
• Centralised HR, payroll, and statutory reporting
• Easy to scale up — or exit the market — if needed

Why choose an EOR in Hungary?

An EOR becomes the legal employer of your local staff while you remain fully in control of their day-to-day tasks and performance. It is ideal for piloting the market, building a local sales or support team, or hiring a first employee in Hungary — without incorporating and taking on Hungarian payroll and compliance directly.

How much does it cost to employ someone in Hungary in 2026?

Hungary has one of the simplest and lowest employer-cost structures in the EU: on top of gross salary, the employer pays just 13% social contribution tax (szocho) — there are no other mandatory employer charges. The employee pays a flat 15% income tax and 18.5% social security. The example below uses HUF 500,000/month gross (≈€1,285).

Hungary at a glance

Employment framework

Employment contracts

Employment is based on a written contract covering the parties, job title and duties, base salary, working time, place of work, duration (fixed-term or open-ended), and any probation. If no duration is stated, the contract is open-ended. Within 15 days of starting, the employer must also give written details of working time, pay elements, payment dates, leave, notice, and any applicable collective agreement.

Probation period

Up to 3 months maximum. A shorter probation can be agreed and extended once, but never beyond 3 months total.

Working hours

Standard full-time is 40 hours per week (usually 5 × 8 hours). The daily maximum is 12 hours and the weekly maximum 48 hours including overtime. Working-time banking over a reference period (for example 16 weeks) is common in services and shift-based work.

13th-month salary

There is no mandatory 13th-month salary in Hungary. Extra bonuses are at the employer’s discretion or set by company policy.

Minimum wage (2026)

From 1 January 2026 there are two statutory minimums: the general minimum wage of HUF 322,800/month (≈€832, up 11%) for jobs without qualification requirements, and the guaranteed minimum of HUF 373,200/month (≈€961, up 7%) for roles that require at least secondary education or a vocational qualification. The higher figure applies based on what the job requires, not simply whether the employee holds a diploma.

Payroll & taxation

Flat income tax & social contributions

Hungary levies a flat 15% personal income tax — the joint-lowest headline rate in the EU. Employees also pay 18.5% social security (pension 10%, health 7%, labour-market 1.5%), and employers pay 13% social contribution tax on top of gross. Corporate income tax is just 9%, the lowest in the EU.

Employee benefits & leave

• Annual leave: a base of 20 days per year, with additional days by age and for employees with children.
• Public holidays: 11 national holidays.
• Sick leave & healthcare: covered within the state social-security system.
• Maternity & parental benefits: Hungary provides extensive support — maternity benefit (CSED), childcare fee (GYED), and childcare allowance (GYES) — administered through the state system.
• Family allowances: depending on the number and status of children.
• Common extras: voluntary pension schemes, private health insurance, and tax-efficient “cafeteria” benefits such as the SZÉP Card (meal, leisure, and accommodation allowances).

Termination & notice periods

Termination is governed by the Labour Code and must always be in writing — by ordinary notice, for cause (extraordinary termination), or by mutual agreement. Statutory notice depends on length of service:

The parties may agree a longer notice period, up to 6 months. Severance generally applies after 3 years of continuous service where the termination is for business reasons (not misconduct), ranging from about 1 to 6 months of average salary depending on seniority. An EOR ensures notice, severance, and timelines comply with the Labour Code.

Work permits & immigration

EU/EEA and Swiss citizens work freely in Hungary. Non-EU nationals generally need a combined residence and work permit; Hungary uses quota and guest-worker frameworks for third-country nationals. An EOR can coordinate permit applications and registration with the Hungarian authorities.

NDA & IP rights

Confidentiality clauses are enforceable where reasonable. Non-competition agreements extending beyond employment require compensation (typically a share of salary for the restricted period). Intellectual property created during employment generally belongs to the employer.

What changed for 2026

• Higher minimum wage: the general minimum rose 11% to HUF 322,800 and the guaranteed minimum 7% to HUF 373,200 from 1 January 2026.
• Family allowance doubled: the second step of the two-stage doubling took effect on 1 January 2026, materially raising net pay for parents of two or more children.
• New mothers’ exemption: mothers under 40 with two children became fully income-tax-exempt from 2026 (following three-child mothers from October 2025), with further age extensions planned through 2029.
• Under-25 threshold up: the youth income-tax exemption now covers earnings up to HUF 693,740/month.
• Employer cost stable: the 13% social contribution tax is unchanged, keeping Hungary among the cheapest EU countries to employ in.

Frequently asked questions