What do you need to know to hire in Hungary?
Hungary taxes salaries at a flat 15%, the same rate for a junior hire and a director. The 2026 minimum wage climbed to Ft 322,800/month, and a skilled-role floor sits higher at Ft 373,200/month. Each guide below takes one layer.
· Hungary guide
How does Teamed handle Hungarian hiring for you?
Teamed becomes your legal employer of record in Hungary for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, contracts, and the full Hungarian employment law stack run on one platform.
Real HR and legal experts manage every Hungarian hire, from the first offer letter to the final settlement. An actual person, not a chatbot or a pooled queue, handles your Hungarian team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
A Hungarian contractor who converts to employment keeps their record, and that same employee can graduate from EOR to your own Hungarian entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Hungarian hire, until it isn't.
- Hungary runs one flat income tax of 15% on every salary. A junior support hire and a country lead pay the same rate. There are no progressive bands to model. Most EOR guides written for Western Europe still describe tiered tax tables that do not exist here. The tax and payroll guide sets out the 2026 numbers.
- The 2026 minimum wage jumped to Ft 322,800/month, and skilled roles have a higher floor. Jobs needing at least a secondary qualification carry a guaranteed minimum of Ft 373,200/month. Many guides quote one figure and miss the second. The cost breakdown guide budgets against both.
- Severance and notice both step up with tenure, and Teamed reads the right band for you. Notice starts at 30 days and reaches 90 days for the longest service. Statutory severance starts after three years and tops out at 6 months of pay. The termination guide walks each step.
Hungary taxes employees at one flat rate of 15%. The same rate applies at every salary level. On top of that, the employer pays a social contribution tax (SZOCHO) and the employee pays a combined social contribution. We confirm the current 2026 rates before your first payroll.
The 2026 monthly minimum wage is Ft 322,800/month. Skilled jobs that need a secondary qualification have a higher floor of Ft 373,200/month. Wages are paid monthly, in arrears, by the tenth of the following month.
Teamed runs Hungarian payroll, contracts, and compliance through a vetted partner-entity network in Hungary.
This page is the map. Each guide below is the detail.
Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk.
How much does it cost to hire an employee in Hungary in 2026?
Plan for salary plus an employer social contribution tax (SZOCHO) on top.
Teamed's Hungary fee is one flat number, with zero FX mark-up in any currency. We confirm the 2026 SZOCHO rate before your first payroll.
The big employer cost in Hungary is the social contribution tax (SZOCHO), paid on gross salary on top of the wage itself. The headline rate has held steady in recent years, but it is set by decree and can move, so we read the live 2026 rate against the official source before quoting your cost. Teamed's Hungary fee sits inside the total cost envelope, not outside it.
Teamed's Hungary price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice.
The full breakdown, with the current employer rates and a worked example, is in the cost guide.
Do you need a Hungarian entity to hire employees in Hungary?
No. An Employer of Record runs Hungarian payroll and contracts from day one.
Your own Hungarian entity becomes cheaper than EOR once headcount grows, and we tell you when.
Setting up a Hungarian Kft. (limited company) means incorporation at the company court, registration with the tax authority for payroll, and ongoing monthly filings in Hungarian. It takes weeks and carries fixed running cost from day one. An Employer of Record is faster and cheaper at low headcount. Teamed runs Hungarian payroll, contracts, and compliance from day one.
The crossover point depends on Hungarian salary levels and your local accounting cost. Most professional-services teams cross it somewhere in the mid-single-digit headcount range. The EOR vs entity guide runs those numbers for your case.
Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Hungarian entity on one platform under Teamed's Graduation Model, with tenure preserved.
What changed in Hungarian employment law recently?
The 2026 minimum wage rose to Ft 322,800/month, up around 11 percent on the prior year.
The skilled-role guaranteed minimum rose too, to Ft 373,200/month.
Government Decree 426/2025 set the 2026 wage floors. The general monthly minimum wage is now Ft 322,800/month, with an hourly equivalent of Ft 1,856/hour. The guaranteed minimum for jobs needing at least a secondary qualification is Ft 373,200/month, or Ft 2,145/hour. Both took effect on 1 January 2026.
The 2022 Labour Code reform that took effect in 2023 also still shapes hiring. Employers must give new starters written information within 7 days of the start date. Parents can request flexible work until a child turns 8, and each parent has 44 days of parental leave paid at 10% of the absence pay, reduced by state benefits. The hiring guide covers each current rule in detail.
What benefits must you provide Hungarian employees in 2026?
The base floor is 20 days of paid annual leave, which rises with age and dependents.
Mothers get 24 weeks of maternity leave, and there are 11 days public holidays.
Base statutory annual leave is 20 days under the Labour Code, and it increases with the employee's age and number of dependent children. Hungary counts annual leave and public holidays separately. The Labour Code fixes 11 days public holidays per year.
Maternity leave is 24 weeks continuous for the mother. Each parent also has 44 days of parental leave paid at 10% of the absence pay. Employer-paid sick leave runs to 15 days per calendar year, paid at 70% of the absence pay. Hungarian law sets no 13th-month or 14th-month salary, so any such pay is a contract choice, not a legal duty. The benefits guide covers each entitlement in full.
Read the full Hungary benefits guide
What are payroll taxes in Hungary in 2026?
Employees pay one flat income tax of 15% on the tax base.
Employers pay a social contribution tax (SZOCHO) on gross salary, and employees pay a combined social contribution.
Hungary applies a single flat personal income tax of 15% on the tax base, the same at every salary level. On top of pay, the employer owes the social contribution tax (SZOCHO) and the employee owes a combined social contribution covering pension, health, and labour market funds. Both of those contribution rates are set by decree and can move year to year, so Teamed reads the live 2026 figures against the official source before each payroll.
Wages are settled monthly, in arrears, and must be paid by the tenth day of the month after the work. A written wage statement is due by the same deadline. Teamed handles all employee deductions and remittances to the Hungarian tax authority. The tax and payroll guide sets out every current rate and threshold.
How do you terminate an employee in Hungary?
Base notice is 30 days, and it grows with the employee's length of service.
Statutory severance starts after three years of service and tops out at 6 months of pay.
The base notice period (felmondási idő) is 30 days under Labour Code 69. On employer termination it extends with service, reaching 35 days after three years, 45 days after five years, and a statutory maximum of 90 days after twenty years. An employer's notice reason must relate to the employee's conduct, capability, or the employer's operations, and it must be true and well founded.
Statutory severance (végkielégítés) is paid on employer termination once service reaches three years. It is 1 month of absence pay after three years, 2 months after five years, and up to 6 months after twenty-five years. An unlawful dismissal exposes the employer to lost-earnings damages capped at 12 months of absence pay. The termination guide runs the full process.
What should you know before hiring in Hungary?
Two things catch US buyers out. The first is that there is no statutory 13th-month salary, so any bonus pay is a contract choice.
The second is that notice and severance both step up with tenure, so the cost of letting someone go grows the longer they stay.
Hungary sets no 13th-month or 14th-month salary in law. Some local employers offer one by custom, and candidates may expect it, but the Labour Code does not require it. If you promise it in the contract, it becomes binding. Decide that on purpose, not by accident.
Termination cost rises with service. Notice starts at 30 days and reaches 90 days for long-tenured staff. Statutory severance starts after three years and climbs to 6 months of pay at the top band. Budget for the tenure band the employee will actually be in, not the base figure. The hiring guide and the termination guide both cover safe process in detail.
Frequently asked questions
How much does it cost to hire an employee in Hungary?
Plan for the gross salary plus the employer social contribution tax (SZOCHO) on top of it, paid on every salary. The exact 2026 SZOCHO rate is set by decree, so Teamed confirms it against the official source before your first payroll. Teamed's Hungary fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has a worked example.
Can a US company hire in Hungary without an entity?
Yes. An Employer of Record like Teamed runs Hungarian payroll, contracts, and compliance through a vetted partner-entity network in Hungary. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Registering your own Hungarian Kft. takes weeks and carries ongoing monthly filings in Hungarian.
What is the income tax rate in Hungary?
Hungary applies a single flat personal income tax of 15% on the tax base, the same at every salary level, for 2026. There are no progressive bands. On top of pay, the employer owes a social contribution tax and the employee owes a combined social contribution; both are set by decree and confirmed before payroll.
What is the statutory notice period in Hungary?
Base notice is 30 days under Labour Code 69. On employer termination it extends with service, reaching 35 days after three years, 45 days after five years, and a statutory maximum of 90 days after twenty years. The employer's reason must be true and well founded.
What severance is owed in Hungary?
Statutory severance (végkielégítés) is paid on employer termination once service reaches three years. It is 1 month of absence pay after three years, 2 months after five years, and up to 6 months after twenty-five years. An unlawful dismissal is capped at 12 months of absence pay in lost-earnings damages.
What is statutory maternity leave in Hungary?
Mothers get 24 weeks of continuous maternity leave under the Labour Code. Each parent also has 44 days of parental leave, paid at 10% of the absence pay and reduced by state benefits. Employer-paid sick leave runs to 15 days per calendar year at 70% of the absence pay.
Hungary looks simple from the tax line. One flat rate, paid monthly, no progressive bands to model. The cost that surprises new employers sits elsewhere. Notice and severance both step up with tenure, employer social contribution tax stacks on every salary, and a 13th-month payment is a custom many candidates expect even though no law requires it. None of these are hard rules once you know them. They are consistently costly when you do not.
Hungary runs one flat income tax of 15 percent, a 2026 minimum wage of 322,800 forint a month, and termination cost that climbs with every year of service.
Most of the surprises come from reading the tax line and stopping there.
Read the right Hungary guide before the first hire, not after the first claim.
