Hiring in Hungary

The terms set out role, base salary in HUF, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity. Any key terms not in the contract must be confirmed in writing within 7 days of the start date.

Bilingual Hungarian and English contracts are standard for commercial roles, although Hungarian is not legally required if the employee understands the language used.

Fixed-term contracts are capped at 5 years including renewals, and each renewal needs a legitimate business reason, so most EORs default to indefinite terms.

Set probation from day one, because it cannot be added later. An extension is only possible once, by agreement, and only up to the cap.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime carries a 50% supplement, or 100% on rest days and public holidays, and agreed time off can replace the weekday supplement.

Executive employees can be carved out by contract, and a monthly lump sum can replace the supplement for others. Put the position in writing either way.

Parents also get up to 7 extra days for children under 16. These top-ups are statutory, so budget per employee rather than with a flat market figure.

Paid sick leave splits into 15 working days a year paid by the employer at 70% of absence pay, followed by state-funded sick pay. Maternity pay is state funded, while paternity and parental leave are paid by the employer, so confirm which side the EOR carries.

The employer must give a written reason linked to the employee's ability, conduct or the employer's operations. The employee must be released from work for at least half the notice period, on full pay.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any severance. Unlawful dismissal claims can cost up to 12 months' absence pay, so keep a documented reason.

Private medical cover and cafeteria benefits such as the SZÉP card are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 13% on top of gross salary. That is before the EOR fee.

Personal tax allowances are the trap. Under-25s and qualifying mothers pay reduced or no income tax, and family allowances cut withholding further, so the same gross salary can produce very different net pay. Agree offers in gross terms and let the EOR confirm entitlements at onboarding.

EU and EEA nationals need no permit, only registration if they stay beyond 90 days.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the general employment permit is now open to first-time applicants from only a few countries.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need a lawful basis, such as standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick, but the running cost is the point: a registered seat, HUF 3 million in share capital, bookkeeping, local business tax, audit thresholds and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.