Good to know
Local Currency: Hungarian Forint (HUF)
Minimum Salary: HUF 266,800 per month.
Salary Calculation: gross to net
Legal Working Hours: the working hours are 40-48 hours/week for full-time employees..
Paid Leave:full-time employees are entitled to 20 days of paid time off every year, this goes for part-time employees too.
About Hungary
Hungary is a landlocked country in central Europe. The capital is Budapest.
Hungary’s economic freedom score is 66.9, making its economy the 48th freest in the 2022 Index. Hungary is ranked 29th among 45 countries in the Europe region, and its overall score is below the regional average but above the world average.
Hungary is an excellent place to invest for a variety of reasons, including its strategic location as the gateway to Central Europe, high-quality infrastructure, and one of Europe’s fastest-growing economies.
Fun fact: No building in Hungary is taller than 143 Meters. The MOL Campus – The Skyscraper Center, the tallest building in the capital.
Are you looking to settle in Hungary? Do you need help with payroll or human resources management? Our Hungarian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
Ready to Benefit from Hungary HR & Payroll Experts?
The Hungary social security system
The Hungarian social security system provides coverage for sickness, maternity, old age, invalidity, occupational diseases and injuries, workplace accidents, survivorship, children’s education, and unemployment.
Social security contributions are paid monthly to the Tax and Customs Administration and the National Health Insurance Fund (NEAK) through contributions by the employee (18.5%) and the employer (13%).
In Hungary, there are five major types of social security:
- Health Services (also, classified as social insurance).
- Pension Services (classified as social insurance)
- Unemployment insurance.
- The family support system insurance.
- The social assistance system.
Administrative Organisation
The National Health Insurance Fund (NEAK) ( Nemzeti Egészségbiztosítási Alapkezelő )
The National Health Insurance Fund operates all the health insurance funds under the supervision of the Hungarian Minister of Human Resources.
Capital & Country Government Office, Hungarian State Treasury Pension Disbursement Board and Central body of the Hungarian State Treasury
They manage the pension insurance system.
The Ministry for National Economy (Nemzetgazdasági Minisztérium)
Is responsible for the unemployment insurance system.
The Hungarian State Treasury (Magyar Államkincstár)
The Hungarian state treasury and the National Health Insurance Fund are responsible for administering the family support system, and both are supervised by the Ministry of Human Resources.
The National Taxes and Customs Administration (NAV) (Nemzeti Adó- és Vámhivatal)
The NAV is in charge of administering and handling both the tax income and social security contributions.
Social contributions in Hungary
Contributions |
|||||
| Risks | By employer (% of wage) | By employee (% of wage) | |||
| Health Care Contributions | – | 7 | |||
| Pension Fund | – | 10 | |||
| Unemployment Fund | – | 1.5 | |||
| Social Contributions Tax “szocho” | 13 | – | |||
(1) Everyone who works in Hungary is required to get social insurance. Workers and their employers both contribute to social security contributions.
(2)The total employee social security contribution is 18.5% (7% + 10% + 1.5%), while the employer social security contribution (szocho) is 13%.
Individual Income Tax
Residents and non-residents are both taxed on their income; residents are taxed on their worldwide income, while non-residents are only taxed on income earned in Hungary.
Resident tax rates
Hungary has a Personal Income Tax (PIT) rate of 15% of the tax base. The tax basis for resident taxpayers is their total income, whereas the tax basis for non-resident taxpayers is their locally taxable income.
Non resident tax rates
Hungary treats non-residents in a similar way to residents on Personal Income Tax (PIT), and they can benefit from tax allowances.
Collection
Employers are obligated to withhold income taxes and social security contributions and pay them to the National Taxes and Customs Administration (NAV) by the 12 the day of the following month.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Hungary.
Our Payroll and HR services in Hungary
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Hungary
HR & Payroll in Hungary
Good to know
Local Currency: Hungarian Forint (HUF)
Minimum Salary: Minimum Wage is HUF 1,339 per hour or HUF232,000 per month.
Salary Calculation: gross to net
Legal Working Hours:the working hours are 40-48 hours/week for full-time employees.
Paid Leave: full-time employees are entitled to 20 days of paid time off every year, this goes for part-time employees too.
Ready to Benefit from Hungary HR & Payroll Experts?
About Hungary
Hungary is a landlocked country in central Europe. The capital is Budapest.
Hungary’s economic freedom score is 66.9, making its economy the 48th freest in the 2022 Index. Hungary is ranked 29th among 45 countries in the Europe region, and its overall score is below the regional average but above the world average.
Hungary is an excellent place to invest for a variety of reasons, including its strategic location as the gateway to Central Europe, high-quality infrastructure, and one of Europe’s fastest-growing economies.
Fun fact: No building in Hungary is taller than 143 Meters. The MOL Campus – The Skyscraper Center, the tallest building in the capital.
Are you looking to settle in Hungary? Do you need help with payroll or human resources management? Our Hungarian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Hungary social security system
The Hungarian social security system provides coverage for sickness, maternity, old age, invalidity, occupational diseases and injuries, workplace accidents, survivorship, children’s education, and unemployment.
Social security contributions are paid monthly to the Tax and Customs Administration and the National Health Insurance Fund (NEAK) through contributions by the employee (18.5%) and the employer (13%).
In Hungary, there are five major types of social security:
- Health Services (also, classified as social insurance).
- Pension Services (classified as social insurance)
- Unemployment insurance.
- The family support system insurance.
- The social assistance system.
Administrative Organisation
The National Health Insurance Fund (NEAK) ( Nemzeti Egészségbiztosítási Alapkezelő )
The National Health Insurance Fund operates all the health insurance funds under the supervision of the Hungarian Minister of Human Resources.
Capital & Country Government Office, Hungarian State Treasury Pension Disbursement Board and Central body of the Hungarian State Treasury
They manage the pension insurance system.
The Ministry for National Economy (Nemzetgazdasági Minisztérium)
Is responsible for the unemployment insurance system.
The Hungarian State Treasury (Magyar Államkincstár)
The Hungarian state treasury and the National Health Insurance Fund are responsible for administering the family support system, and both are supervised by the Ministry of Human Resources.
The National Taxes and Customs Administration (NAV) (Nemzeti Adó- és Vámhivatal)
The NAV is in charge of administering and handling both the tax income and social security contributions.
Social contributions in Hungary
Contributions as of 1 Jan 2023 |
|||||
| Risks | By employer (% of wage) | By employee (% of wage) | |||
| Health Care Contributions | – | 7 | |||
| Pension Fund | – | 10 | |||
| Unemployment Fund | – | 1.5 | |||
| Social Contributions Tax “szocho” | 13 | – | |||
(1) Everyone who works in Hungary is required to get social insurance. Workers and their employers both contribute to social security contributions.
(2) The total employee social security contribution is 18.5% (7% + 10% + 1.5%), while the employer social security contribution (szocho) is 13%.
Individual Income Tax
Residents and non-residents are both taxed on their income; residents are taxed on their worldwide income, while non-residents are only taxed on income earned in Hungary.
Resident tax rates
Hungary has a Personal Income Tax (PIT) rate of 15% of the tax base. The tax basis for resident taxpayers is their total income, whereas the tax basis for non-resident taxpayers is their locally taxable income.
Non resident tax rates
Hungary treats non-residents in a similar way to residents on Personal Income Tax (PIT), and they can benefit from tax allowances.
Collection
Employers are obligated to withhold income taxes and social security contributions and pay them to the National Taxes and Customs Administration (NAV) by the 12 the day of the following month.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Hungary.
Our Payroll and HR services in Hungary
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Hungarian Forint (HUF)
Minimum Salary: minimum Wage is HUF 1,339 per hour or HUF232,000 per month.
Salary Calculation: gross to net.
Legal Working Hours:the working hours are 40-48 hours/week for full-time employees.
Paid Leave: full-time employees are entitled to 20 days of paid time off every year, this goes for part-time employees too.
Ready to Benefit from Hungary HR & Payroll Experts?
About Hungary
Hungary is a landlocked country in central Europe. The capital is Budapest.
Hungary’s economic freedom score is 66.9, making its economy the 48th freest in the 2022 Index. Hungary is ranked 29th among 45 countries in the Europe region, and its overall score is below the regional average but above the world average.
Hungary is an excellent place to invest for a variety of reasons, including its strategic location as the gateway to Central Europe, high-quality infrastructure, and one of Europe’s fastest-growing economies.
Fun fact: No building in Hungary is taller than 143 Meters. The MOL Campus – The Skyscraper Center, the tallest building in the capital.
Are you looking to settle in Hungary? Do you need help with payroll or human resources management? Our Hungarian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Hungary social security system
The Hungarian social security system provides coverage for sickness, maternity, old age, invalidity, occupational diseases and injuries, workplace accidents, survivorship, children’s education, and unemployment.
Social security contributions are paid monthly to the Tax and Customs Administration and the National Health Insurance Fund (NEAK) through contributions by the employee (18.5%) and the employer (13%).
In Hungary, there are five major types of social security:
- Health Services (also, classified as social insurance).
- Pension Services (classified as social insurance)
- Unemployment insurance.
- The family support system insurance.
- The social assistance system.
Administrative Organisation
The National Health Insurance Fund (NEAK) (Nemzeti Egészségbiztosítási Alapkezelő)
The National Health Insurance Fund operates all the health insurance funds under the supervision of the Hungarian Minister of Human Resources.
Capital & Country Government Office, Hungarian State Treasury Pension Disbursement Board and Central body of the Hungarian State Treasury
They manage the pension insurance system.
The Ministry for National Economy (Nemzetgazdasági Minisztérium)
Is responsible for the unemployment insurance system.
The Hungarian State Treasury (Magyar Államkincstár)
The Hungarian state treasury and the National Health Insurance Fund are responsible for administering the family support system, and both are supervised by the Ministry of Human Resources.
The National Taxes and Customs Administration (NAV) (Nemzeti Adó- és Vámhivatal)
The NAV is in charge of administering and handling both the tax income and social security contributions.
Social contributions in Hungary
Contributions as of 1 Jan 2023 |
|||||
| Risks | By employer (% of wage) | By employee (% of wage) | |||
| Health Care Contributions | – | 7 | |||
| Pension Fund | – | 10 | |||
| Unemployment Fund | – | 1.5 | |||
| Social Contributions Tax “szocho” | 13 | – | |||
(1) Everyone who works in Hungary is required to get social insurance. Workers and their employers both contribute to social security contributions.
(2) The total employee social security contribution is 18.5% (7% + 10% + 1.5%), while the employer social security contribution (szocho) is 13%.
Individual Income Tax
Residents and non-residents are both taxed on their income; residents are taxed on their worldwide income, while non-residents are only taxed on income earned in Hungary.
Resident tax rates
Hungary has a Personal Income Tax (PIT) rate of 15% of the tax base. The tax basis for resident taxpayers is their total income, whereas the tax basis for non-resident taxpayers is their locally taxable income.
Non resident tax rates
Hungary treats non-residents in a similar way to residents on Personal Income Tax (PIT), and they can benefit from tax allowances.
Collection
Employers are obligated to withhold income taxes and social security contributions and pay them to the National Taxes and Customs Administration (NAV) by the 12 the day of the following month.
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Hungary.
Our Payroll and HR services in Hungary
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure