Hungary

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Hungary. See a sample of popular sections below.

Termination of Employment

In Hungary, employment relationships can be terminated by either employers or employees, and notice is required. Employees may terminate an indefinite employment contract at any time without giving grounds for termination. However, for fixed-term employment contracts, grounds must be given, and termination is allowed only for justified reasons. The notice period begins on the day following the date when dismissal is communicated.

The notice period must be at least 30 days, but, in the case of dismissal by the employer, it may increase by up to 60 days, depending on the employee's length of service. 

Work Permits

In Hungary, a residence permit may be issued for the purpose of employment to third-country nationals, under certain conditions. Generally, they must first sign an employment contract before obtaining a work permit. EU nationals working in Hungary do not typically need a work permit.

The validity period of a residence permit granted for the purpose of employment must not exceed the term specified in the specialist authority’s assessment, that, however, may be extended up to the time indicated in the specialist authority’s assessment given if the procedure was re-opened. 

Paid Annual Leave

In Hungary, mothers are entitled to 24 weeks of maternity leave. Female employees can take 168 calendar days (24 weeks) of paid maternity leave of which maximum 4 weeks can be taken before the child's expected date of birth. The starting date for entitlement to the childcare allowance can be any day in the four weeks preceding the expected date of childbirth, but at the latest on the day of childbirth. The remaining weeks must be used after the birth of the child.

This period also applies to mothers who have custody of a child for adoption. If the child receives treatment in an institute for premature infants, the unused portion of the maternity leave may be used after the child has been released from the institute up to the end of the first year following birth. The duration of maternity leave is recognized as time spent at work for social insurance qualification purposes.

Maternity benefits are paid in the form of infant care allowance for the duration of maternity leave. The benefit is paid at the rate of 100% of the insured's daily average gross earnings (minimum wage is used in the absence of earnings) in the last 180 days before the expected date of childbirth. Employees must have at least 365 days of coverage in the last 2 years to be eligible for this benefit.

Working Hours

In Hungary, the daily working time in full-time jobs is eight hours, but based on an agreement between the parties, it may be increased to a maximum of 12 hours for employees working in standby jobs, or who are relatives of the employer or the owner.

The scheduled daily working time of an employee may not be under four hours, with the exception of part-time work, and may not exceed 12 hours (24 hours in the case of standby jobs). The weekly working time may not exceed 48 hours (72 hours in the case of standby jobs).

In case of remote work, the contracting parties must expressly agree on remote working in their employment contracts. Remote employees work no more than one-third of the total working days in a year in their employers' premises. Employers exercise their control right remotely by using a computer technology device. Employers must provide remote employees with all the information they provide to other employees. 
 

Maternity Leave

In Hungary, mothers are entitled to 24 weeks of maternity leave. Female employees can take 168 calendar days (24 weeks) of paid maternity leave of which maximum 4 weeks can be taken before the child's expected date of birth. The starting date for entitlement to the childcare allowance can be any day in the four weeks preceding the expected date of childbirth, but at the latest on the day of childbirth. The remaining weeks must be used after the birth of the child.

This period also applies to mothers who have custody of a child for adoption. If the child receives treatment in an institute for premature infants, the unused portion of the maternity leave may be used after the child has been released from the institute up to the end of the first year following birth. The duration of maternity leave is recognized as time spent at work for social insurance qualification purposes.

Maternity benefits are paid in the form of infant care allowance for the duration of maternity leave. The benefit is paid at the rate of 100% of the insured's daily average gross earnings (minimum wage is used in the absence of earnings) in the last 180 days before the expected date of childbirth. Employees must have at least 365 days of coverage in the last 2 years to be eligible for this benefit.

Minimum Wage

In Hungary, there are 2 types of minimum wages:

  • The National Minimum Wage, which is for employees without an official profession, unskilled workers, or employees who are skilled, but work in positions that do not require an official certificate.
  • The Guaranteed Minimum Wage is set for professional workers in jobs requiring at least a secondary level of qualifications or vocational training.

Current minimum wage rates (effective from December 2023) are as follows:

Minimum Wage (Hungarian Forints, HUF) 

Per Month

Gross Minimum Wage

266,800.00

Guaranteed Gross Minimum Wage

326,000.00

In the absence of a contract, the salary must be paid at least once a month. The salary must be paid by the 10th day of the month following the month in question, along with a written pay slip. If the wage payment day falls on a weekly rest day or a public holiday, it must be paid on the previous working day at the latest. 

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Hungary.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Hungary.