GLOBAL EMPLOYER OF RECORD IN HUNGARY
Employer of Record in Hungary
Put the right people in place in Hungary while keeping market entry flexible. Acumen International acts as your Employer of Record, allowing you to hire now, test the opportunity and commit to a local company only when the scale of the business justifies it.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employer of Record in Hungary explained
With an Employer of Record, Acumen International is the legal employer of the people who work for your business in Hungary. Acumen signs the employment contract under the Hungarian Labour Code, registers the employee with the tax and social security authorities, pays salary and carries the employer’s legal obligations. You decide who to hire, what they work on and how their performance is judged.
Ways to engage people in Hungary
| Arrangement | How it works | The catch |
|---|---|---|
| Employment contract (munkaszerződés) | Employment under the Labour Code, with tax and contributions withheld through payroll | Needs a Hungarian employer, which Acumen International provides |
| Self-employed contractor (egyéni vállalkozó) | The person invoices for services and pays their own tax | If the relationship works like employment, the tax authority can treat the contract as a sham and reclassify it |
| Simplified employment | Registration-based work for casual, seasonal agricultural or tourism jobs | Limited to short periods, so it does not fit an ongoing professional role |
What an Employer of Record changes for your business
- You can employ people in Hungary before forming a Kft., which needs a registered seat, a managing director, at least HUF 3 million in share capital, and accounting and payroll arrangements.
- The people who work for you have proper employment status, so the relationship is not exposed to reclassification as a disguised contract.
- Your managers lead the work, while Acumen International handles the employer’s side of the relationship, from the written contract to dealings with labour inspectors.
- Where a permit route is open to the candidate, a specialist from outside the EU can join your team with Acumen as the employer named in the application.
- When your Hungarian operation grows enough to justify a Kft., the team can transfer to it and keep their service and terms.
Agency work in Hungary: the legal basis and its limits
In Hungary, an Employer of Record works through agency work (munkaerő-kölcsönzés), regulated by the Labour Code. The employer assigning staff to a client must be registered as a temporary work agency with the labour authority. The arrangement is fully lawful, but it comes with limits that shape how long and in which roles it can be used:
- An employee can be assigned to the same client for no more than five years in total, and assignments that follow each other within six months count together, even through a different agency.
- From the 184th day of an assignment, the employee must receive pay and benefits on the same terms as the client’s own comparable employees.
- Assigned employees cannot be used to replace staff who are on strike.
- The agency and the client cannot be connected through shareholdings, directly or through a third company.
- Assignment is not allowed to jobs that the law closes to certain groups of employees, and collective agreements can add further limits.
- Hungary has sharply reduced the permits available to workers from outside the EU, and hiring through an agency is affected too. The section on foreign hires below sets out what remains open.
For most professional roles these limits are manageable, especially when an Employer of Record is used to start an operation and the team later moves to your own Kft.
Hungarian minimum pay and salary rules for 2026
Hungary has two statutory floors. The minimum wage is HUF 322,800 a month, and the guaranteed wage minimum, which applies to roles requiring at least secondary education or a vocational qualification, is HUF 373,200. Most professional roles fall under the higher floor, and salaries are agreed as a gross monthly figure. Pay for each month is due by the 10th of the following month.
| Work | Statutory supplement |
|---|---|
| Overtime | 50%, or equivalent time off |
| Work on a scheduled rest day | 100%, or 50% with a replacement rest day |
| Work on a public holiday | 100% |
| Night work, between 10 pm and 6 am | 15% |
| Shift work between 6 pm and 6 am | 30% |
For employees working from home, the employer can pay a flat monthly cost allowance of up to 10% of the minimum wage without tax or contributions.
Probation, fixed terms and working time under the Hungarian Labour Code
| Topic | The rule |
|---|---|
| Written contract | Signed before work starts, stating at least the base wage, the job and the start date, with further terms confirmed in writing within 7 days |
| Probation | Up to 3 months, or up to 6 months under a collective agreement |
| Fixed-term contracts | Up to 5 years, including extensions and contracts concluded within six months of each other |
| Working time | 8 hours a day and 40 hours a week, which can be averaged over a working-time banking period |
| Overtime | Up to 250 hours a year, or 300 under a collective agreement, plus up to 150 further hours agreed in writing with the employee |
| Daily and weekly maximum | 12 hours a day and 48 hours a week, overtime included |
| Non-compete | Up to 2 years after employment, with compensation of at least one third of base wage for the restricted period |
Ending employment in Hungary: notice, severance and protection
An employer can terminate an open-ended contract only for a reason connected with the employee’s conduct, their ability, or the employer’s operations, and the reason must be true, clear and set out in writing. Notice is barred during pregnancy, maternity leave, certain childcare leave and fertility treatment.
Notice starts at 30 days and grows with service when the employer terminates. During notice, the employer must release the employee from work for at least half the period, on full pay. After three years of service, severance is due whenever the employer gives notice for a reason other than the employee’s conduct or a lack of ability unrelated to health.
| Service with the employer | Extra notice on top of 30 days | Severance |
|---|---|---|
| 3 years | 5 days | 1 month’s absence fee |
| 5 years | 15 days | 2 months |
| 8 years | 20 days | 2 months |
| 10 years | 25 days | 3 months |
| 15 years | 30 days | 4 months |
| 18 years | 40 days | 4 months |
| 20 years | 60 days | 5 months |
| 25 years | 60 days | 6 months |
Severance rises by up to three months for employees within five years of retirement age. An employee has 30 days to challenge a dismissal in the labour court, which can award compensation of up to 12 months’ absence fee for an unlawful termination.
Employment risks in Hungary and how Acumen International mitigates them
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | The tax authority treats a contractor arrangement that works like employment as a sham contract and claims tax, contributions and penalties | Your Hungarian team is employed by Acumen International under the Labour Code |
| IP ownership | Rights in work created as a job duty pass to the employer on delivery, and the employee can claim remuneration when those rights are passed to a third party | Contracts transfer the rights to your business and settle remuneration in advance |
| Supplier status | Agency work requires a registered temporary work agency, and an agreement between an agency and a client linked by ownership is invalid | Assignment runs through a registered agency with no ownership link to your business |
| Equal pay for assigned staff | From the 184th day of an assignment, pay and benefits must match your comparable employees | Pay is reviewed against your Hungarian staff before day 184 |
| Permanent establishment | A Hungarian employee who concludes contracts in your name can give your company a taxable presence | Contract approval stays with your company and is written into the role |
| Exit cost | Notice of 30 to 90 days with half of it released from work, severance after three years of service, and up to 12 months’ compensation for an unlawful dismissal | Exit routes and costs are set out at proposal stage |
| Sponsor obligations | Permits for non-EU nationals depend on the employer meeting the conditions of a narrowing set of routes | Acumen International checks the route before the offer and carries the employer’s duties once a permit is granted |
| Pay transparency | The EU Pay Transparency Directive was due for national transposition by June 2026 | Pay structures and job advertisements prepared for the new requirements |
Hiring non-EU nationals in Hungary through Acumen International
Hungary has closed or tightened several routes for workers from outside the EU. Since 6 June 2026, no new guest worker residence permits are issued, and the government has ordered a further review of the rules for third-country nationals, so more changes are expected. The residence permit for employment purposes remains available, but only to nationals of designated countries, currently Georgia, Armenia and the Philippines, and to people already working in Hungary on a valid permit since the end of 2024. Separate routes for highly qualified specialists, such as the EU Blue Card, and transfers within your own group follow their own conditions.
In this environment, the value of Acumen International lies in getting the route right before anyone commits. Acumen checks the candidate’s nationality, qualifications and current status against the routes that are open, confirms whether the role can be filled with Acumen as the employer, and only then moves to an offer. Where a route is available, Acumen acts as the employer the application needs, signs the contract and keeps the permit and the employment terms aligned for as long as the person works for you. Where no route is open, you find out before the candidate resigns from their current job, and the role can be filled from Hungary or another EU country instead.
Employer costs and payroll tax in Hungary
Hungary’s payroll structure is simple. The employer pays a 13% social contribution tax on top of gross salary. The employee pays an 18.5% social security contribution and 15% flat-rate personal income tax, both withheld from gross pay. None of these has an upper earnings cap.
| Employer | Employee | |
|---|---|---|
| Social contribution tax | 13% | None |
| Social security contribution | None | 18.5% |
| Personal income tax | None | 15% |
HUF 1,000,000 a month in practice
A gross monthly salary of HUF 1,000,000 costs the employer HUF 1,130,000. The employee pays HUF 185,000 in social security and HUF 150,000 in income tax, which leaves HUF 665,000 net before any allowances.
Allowances that raise net pay
Employees under 25 are exempt from income tax on earnings up to a cap linked to the national average wage. Mothers of three or more children have been exempt since October 2025, and from 2026 the exemption extends to mothers of two children who are under 40. The family tax base allowance rises to HUF 133,340 a month per child for families with one or two children, so net pay for parents can be considerably higher than the example.
The Global Payroll Calculator shows the employer cost of any Hungarian salary at the 13% rate, so you can compare offers quickly.
Industries hiring in Hungary through an Employer of Record
- Car manufacturing is anchored by Audi in Győr, Mercedes-Benz in Kecskemét, BMW in Debrecen and Suzuki in Esztergom. Suppliers place quality, launch and logistics engineers near these plants, often before setting up a Hungarian company.
- Battery manufacturers have built or are building plants around Göd, Komárom and Debrecen, creating demand for process engineers, chemists and project managers.
- Budapest hosts finance, IT and service centres for international groups, and companies without a centre of their own add developers, analysts and accountants alongside them.
- Pharmaceutical companies run research and production in Hungary and recruit regulatory, quality and medical specialists.
- Electronics and engineering firms hire design and test engineers to support customers in the region.
Each of these starts the same way: a few people are needed close to a customer, a supplier or a project, well before a Kft. is worth forming.
Hungarian hiring cases and how they are handled
| Case | What Hungarian rules add | How it is handled |
|---|---|---|
| A sole trader who has invoiced you for years joins as an employee | Employment brings 33.5% in employee deductions, so the gross figure has to be set with the person’s current net income in mind | The offer is modelled in net terms, and the past contract is reviewed with your adviser |
| A senior candidate is bound by a non-compete with their current employer | A Hungarian non-compete can run for two years and is enforceable when the former employer pays compensation | The restriction is checked before the offer, and the role or start date is adjusted where needed |
| Your project needs longer hours during a peak | Hours can be averaged over a working-time banking period, but the schedule must be communicated in writing in advance | A banking period and schedule are agreed with you before the peak begins |
| A new hire commutes from another town by train or bus | Employers must reimburse at least 86% of the season ticket for commuting from another settlement | The reimbursement is added to monthly payroll from the first day, and the cost is included in your quote |
Benefits and payroll administration in Hungary
Hungary’s SZÉP card is an employer-funded benefits card for accommodation, catering and leisure. Employer contributions of up to HUF 450,000 a year carry a combined tax and contribution cost of 28%, lower than the cost of the same amount paid as salary. Private health insurance and voluntary pension fund contributions are also common in professional packages, and are taxed as employee income.
Payroll deadlines
| Deadline | What happens |
|---|---|
| Before the first working day | The employee is registered with the tax authority |
| By the 10th of the following month | Salary is paid |
| By the 12th of the following month | Payroll taxes and contributions are declared and paid |
| By 31 January | Employees receive a certificate of the previous year’s income and deductions for their tax return |
Annual leave, sick pay and family leave in Hungary
The basic annual leave is 20 working days. It rises with age, from one extra day at 25 to ten extra days at 45, and parents receive two extra days for one child under 16, four for two children and seven for three or more.
| Leave | Entitlement | Paid by |
|---|---|---|
| Public holidays | 11 a year | Employer |
| Sick leave | 15 days a year of sick pay at 70% of salary, then sickness benefit | Employer, then social security, with the employer covering one third of the benefit |
| Maternity leave | 24 weeks | Social security, at 100% of the daily average |
| Paternity leave | 10 working days within two months of the birth | Employer, reimbursed by the state |
| Parental leave | 44 working days until the child turns three | Employer, at 10% of the absence fee |
| Unpaid childcare leave | Until the child turns three | Unpaid, with state childcare benefits |
Sources
- Changes to the minimum wage and guaranteed wage minimum in 2026
- This is how Hungarians will pay taxes in 2026
- Hungary stops guest worker residence permits: what does this mean for employers?
- Important changes in the rules governing the employment of guest workers
- Hungary: restrictions on use of temporary staff agency workers
- Employment law in Hungary
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
How can we build a competitive benefits package for an employee in Hungary?
Acumen can combine the mandatory employment benefits in Hungary with supplementary benefits selected for the role, seniority and talent market. This is particularly useful for senior, specialist or hard-to-hire positions where a statutory-only package would not be competitive.
What happens if we later open our own entity in Hungary?
The EOR arrangement can be a bridge rather than a permanent commitment. When your entity in Hungary is ready and direct employment becomes the preferred model, Acumen can coordinate the transition subject to the employment-transfer requirements that apply at that point.
Can Acumen manage Hungary together with our other EOR markets?
Yes. The value of a multi-country EOR programme is common oversight without pretending every market is the same. Acumen can manage the Hungary employment alongside other countries while localising contracts, payroll, benefits and employment processes where required.