How to hire remote employees in

Hungary

Want to hire someone in Hungary? You’re in the right place. Hiring remotely is a confusing topic—and there’s a good chance you’ve been handed misinformation at some point or another. We’re here to clear all that up. By the end of this page, you’ll know everything you need to know to start hiring remote talent in Hungary.

Country snapshot

CURRENCY
Forint (HUF)
EMPLOYER TAXES
17.00%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Hungarian

What to know before you hire in 

Hungary

Hiring in Hungary can be notoriously difficult—but not when you know what you’re doing. If you want to hire remote talent in Hungary, you have two options: Hire people as contractors, or hire them as employees.

If you want to successfully hire in 

Hungary

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Hungary

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Hungary

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Hungary

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Hungary

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Hungary

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Hungary

?

If you’re hiring contractors in 

Hungary

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Hungary

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Hungary

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Hungary than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Hungary.

Taxes in 

Hungary

Employer tax

Employer Contributions

  • 17.00%

Individual tax

Leave

Paid Time Off (PTO)

All employees are entitled to a minimum of 20 days of paid vacation per year. Starting at the age of 25, the number of annual vacation days is raised by 1 day every 3 years during their twenties, and every 2 years during their thirties and forties.

Public Holidays

There are 11 public holidays in Hungary but its custom to grant additional days e.g. 2nd St Stephen’s day  in order to have a long weekend.

Sick Days

Employees are entitled to 15 days of sick leave per year, paid by the employer at a rate of 70% of the salary.

From the 16 days, the payment varies between 50%-60% depending on the term of service. 1/3 of the payment is paid by the employer and 2/3 are paid by the National Health Insurance Fund.

Maternity Leave

Women have 24 weeks of maternity leave but are allowed to take up to three years off and receive maternity benefits. For the first six months, mothers are entitled Pregnancy and Confinement Benefit (CSED) at a rate of 70% of the salary.

For the next eighteen months, until the child’s second birthday, mothers are entitled to Child Care Fee (Gyermekgondozási díj – GYED) at a rate of 70% of the salary up to a maximum of double the minimum wage.

A benefit called Child Home Care Allowance (Gyermekgondozási segély – GYES) is available for parents or grandparents taking care of a child up to the age of three.

The benefits are paid by National Health Insurance Fund of Hungary (NEAK).

Paternity Leave

Following the birth of their child, fathers are entitled to five days of paid leave, which they may take in one or in several parts until the end of the second month after the birth. Any income and taxes related to this period of supplementary leave are reimbursed to the employer by the Hungarian State Treasury.

Parental Leave

After the maternity leave is over, one parent can take parental leave up until the child reaches the age of 2 years old. This leave is paid at the rate of 70% but is capped at double the minimum daily wage.

In addition, one parent is entitled to additional paid time off:

2 additional days for 1 child
4 additional days for 2 children
7 additional days for more than 2 children

This additional leave is granted up until the child reaches the age of 16 years old.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

Both the employee and employer must provide termination in writing and must contain a justified reason for dismissal.

Notice Period

Termination during probation is effective immediately.

Temporary (fixed-term) contract terminates at the end of fixed term.

Termination of a permanent contract requires a notice period of 30-90 days

Severance Pay

Severance pay varies between 1-9 months depending on the length of service and age.

An employee will be entitled to severance pay in the following termination scenarios:

  • by the employer
  • upon the dissolution of the employer without succession
  • if during a transformation as a legal succession or a business transfer, the transferee employer is not covered by the labor code.

Probation Period

The probation period is optional and cannot exceed 3 months.

Employee requirements in 

Hungary

Working Hours

Full-time employment is considered 8 hours per day and 40 hours per week.

Overtime

Overtime hours during the week are paid at a rate of 150%. Overtime hours on weekends and bank holidays are paid at a rate of 200%.

Want to hire contractors, anywhere? Start with Panther today for $0.

Start for $0
No credit card required