HR Services in Hungary

Only if the contract sets one. Probation can last up to 3 months, or up to 6 under a collective agreement, and a shorter probation can be extended once within that limit. In fixed-term jobs of up to 12 months, it must be proportionate. During probation, either side can end the employment immediately, without giving reasons. We make sure your contracts reflect these rules.

Employers pay a 13% social contribution tax on pay, and non-wage costs add about 16% on top of gross wages (Eurostat, 2025). You also pay 70% of the absence fee for up to 15 working days of sick leave a year, and one-third of the sickness benefit after that. Our Compensation & Benefits Strategy builds a reward framework aligned with Hungarian law, market data and internal equity.

As a rule, full time is 8 hours a day, and schedules can reach 12 hours a day and 48 hours a week, overtime included, with 11 hours’ rest between working days. Overtime is capped at 250 hours a year, or 300 under a collective agreement, and either can rise to 400 with the employee’s written agreement. It earns a 50% premium or time off, rising to 100% on a public holiday or on a rest day with no substitute rest day. We structure work schedules that comply and still leave room for flexibility.

Employers give up to 15 working days of sick leave a year at 70% of the absence fee. After that, health insurance pays sickness benefit: 60% of the benefit base with at least 730 days of insurance, or 50% with less or during hospital care, up to a daily cap. The employer pays one-third of it. Work accidents, occupational illness and high-risk pregnancy follow separate rules. We put clear sick leave policies in place.

20 working days of base leave a year, plus extra days by age, from 1 at age 25 to 10 at age 45, and 2, 4 or 7 days for one, two, or more than two children under 16, with more for a disabled child. Hungary also has 11 public holidays. We keep you compliant with leave entitlements and help you offer a competitive benefits package.

It’s structured, not impossible. Dismissal with notice needs a reason linked to conduct, ability or operations, except for executives and, on open-ended contracts, pensioners. Notice is 30 days, rising with service to 90 days after 20 years, and the employee is released from work for at least half of it. After 3 years, severance of 1 to 6 months’ absence fee is due, plus up to 3 more within five years of pension age, unless the dismissal is for conduct or non-health ability, or the employee is a pensioner. We guide you through every step.

Not indefinitely. As a rule, fixed-term employment can’t exceed 5 years, counting extensions and any new fixed term within 6 months of the last one, and each extension or renewal needs a legitimate employer interest. If you end a fixed term early without a reason, you owe 12 months’ absence fee, or the absence fee for the remaining term if that’s shorter. We make sure every fixed-term contract meets these rules.

Only if one covers you: one you signed, one signed by an employers’ association you belong to, or one extended to your sector. Its employment terms then apply to all your employees except executives. A union can sign one with you once its members make up 10% of your workforce, and an agreement can depart from many Labor Code rules, some only in the employee’s favor. We keep you compliant with any agreement that applies, with as much flexibility as it allows.

Where the average headcount is over 15, employees elect a works representative, and over 50 a works council, for five years. You must ask the works council’s opinion at least 15 days before measures that affect a larger group of employees. We guide you in working with employee representatives.

Hungary missed the June 2026 deadline for the EU Pay Transparency Directive. As of October 2026, the Government’s autumn legislative program schedules the law for adoption in October 2026. Already, the Labor Code requires equal treatment in pay and sets criteria for judging work of equal value. Our Compensation & Benefits Strategy covers EU Pay Transparency readiness.

The labor authority can impose a labor fine of at least HUF 30,000. For employers with up to 20 employees, the Labor Inspection Act caps it at HUF 5 million, doubled for a repeat breach within 3 years; for larger employers, it sets no upper limit. Some breaches, such as a missing written contract, can be fined when only one employee is affected. We conduct regular compliance audits so your documentation is ready for inspection.