Guide to employing in Hungary
with an Employer of Record

Hungary
Licensed EOR provider · Our own local entity · One monthly invoice
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Capital City
Budapest
Currency
Forint
Population Size
9,572,756 (2026)
Language Spoken
Hungarian
Hungary panorama
1

Overview

XPANDIUM is a licensed Employer of Record (EOR) services company in Hungary, employing staff through its own local entity from €350 per employee per month.

Hiring employees in a foreign country can be a challenging and resource-intensive task.

We offer an EOR solution as a cost-effective and compliant way to handle all aspects of onboarding, payroll management/administration, tax payments and benefits without you having to establish a legal entity in Hungary.

When you choose to partner with XPANDIUM as your Employer of Record in Hungary, our team will seamlessly handle all aspects of compliant onboarding and EOR employment.

- Employment contracts governed by the Hungarian Labor Code

- Onboarding within 24 hours of signing

- Payroll - salary, benefits and tax payments in HUF

- Human-led communications

- Dedicated Account Manager

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EOR Service Fee

Hire Employees

Employer of Record in Hungary

€350
per employee, per month
plus salary and employer taxes
approx. $402 USD
Compliant Hungarian employment contract
Payroll, salary, benefit and tax payments
Payroll support in Hungarian and English
One monthly invoice, all costs shown upfront
Start Hiring in Hungary
2

XPANDIUM - How an EOR works in Hungary

Take the complexity out with Xpandium as your Employer of Record in Hungary. Our local entity becomes the legal employer, and you keep full control of the day-to-day work.

You
Manage the work
Choose who to hire and set the salary
Direct daily tasks, goals and working hours
Review performance and decide on raises
Pay one monthly invoice
Xpandium
Handles the employment
Hungarian employment contract through our own local entity
Onboarding in 24 hours of signing
Registration with the Hungarian authorities
Payroll - salary, benefits, tax payments and payslips
Employee taxes, contributions and filings
Human-led payroll support in Hungarian and English

XPANDIUM - your partner for compliant hiring and growth in Hungary. We keep your company compliant and up to date with every change to the Hungarian Labor Code.

Hungary panorama

The following information is a basic guideline for employment in Hungary and
the salary calculator helps you easily understand the approximate costs.

Employment Contract

Employment contracts may be fixed term or for indefinite duration. Fixed-term contracts are allowed for up to a maximum 5-year period (including breaks up to 6 months) if they are for temporary, seasonal work or EOR scheme.

Probation period

Max 3 months; if shorter, may be extended once but never beyond 3 months total.

Onboarding medical exam

A job fitness medical exam is mandatory for every EOR employee at onboarding. As the employer, we arrange it, ideally before the start date or within 2 weeks of it at the latest, and repeat it every year. An additional fee applies.

Working hours

40 hrs/week; overtime max 250 hrs/yr (up to 300 by collective agreement).

Flexible work schedule

Employees telecommuting i.e. working remotely in “home-office” may work flexible hours, however special labor law conditions apply for both a flexible telecommuting or uneven time-framed working schedule scheme.

Minimum wage

HUF 322,800 gross per month. For skilled roles, the guaranteed minimum wage is HUF 373,200 gross per month. Both are effective January 1, 2026. Last updated: October 2026.

13th month salary

Not mandatory.

Benefit package

In Hungary, there are no obligatory fringe benefits that an Employer must offer however a voluntary plan can be set up which is referred to as a Cafeteria system (see more details in the Benefits section).

Payroll Cycle

Monthly salaries must be paid within 10 calendar days following the relevant month and after payroll is closed for all employees.

Health insurance in Hungary

Hungary provides full medical coverage to all residents, with payroll contributions as one source of funding. The government pays contributions for certain groups such as the unemployed and pensioners.

Employment cost
Salary Calculator

Employer of Record in Hungary

Type an amount or pick an example.

HUF
HUF904,000

total cost per employee, per month*

Net salary66.5% of grossHUF 532,000
Social security tax13% of gross, paid by the employerHUF 104,000

*Note: Additional local taxes of 2.45% of gross apply, plus a rehabilitation contribution of HUF 12,105 and the EOR service fee of €350, both per employee, per month.

Request a Quote
3

Payroll in Hungary

Experience a seamless payroll journey in Hungary with the expertise of Xpandium. Our specialized payroll services ensure compliance, efficiency, and operational excellence. Everything is handled by a local team that knows Hungarian rules inside out.

Before payroll

Data collection and verification

We gather and verify each employee's data and set up the procedures for a correct pay run every month.

Payroll run

Salary calculation

Wages, taxes, deductions and applicable benefits are calculated under Hungarian payroll rules.

After payroll

Payment and reporting

We pay the salaries, provide payslips, handle payroll accounting and reporting, and keep everything in line with local regulations.

Payday: monthly salaries are paid within 10 calendar days after the end of the month.

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Public Holidays

Total 11 public holidays per year.

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5

Popular Benefits in Hungary

When you decide to partner with XPANDIUM’s payroll services in Hungary, we can help you create specialised benefit packages to attract top candidates in the Hungarian market.

This means XPANDIUM will help your company design and establish customised plans to compensate employees beyond regular salaries. These voluntary, non-salary benefits may include the following. Specific local rules apply to each:

home icon

SZÉP - Széchenyi card, meal and accomodation support

money icon

Voluntary pension fund contribution (VPF)

train icon

Commuting allowance

Supplementary medical insurance icon

Voluntary healthcare fund contribution (VHF - special terms apply)

Benefit planning process includes

XPANDIUM understands the importance of offering attractive benefits to attract top-tier candidates when your company hires employees in Hungary.
We can assist your company in designing and implementing unique benefit programmes for single or group employees. This process will include:

1Set the annual amount - Hungary

Helping you determine the annual benefit amount in HUF you want to offer employees – this amount can be divided into 12 instalments and integrated into the regular payroll.

2Design the benefit package

Determining which benefit items to offer employees and designing unique benefits packages.

3Create internal policies

Internal policies should be created to outline the benefits plan, formally communicated to relevant employees, written approved and integrated with the monthly payroll.

4Collect benefit statements

Ensuring employees have accurately completed benefit statements – specifying preferred benefits and respective amounts. These statements must be completed, signed and provided to the Hungarian Employer of Record for processing.

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Types of Leave in Hungary

Annual (paid) leave

20 working days minimum, rising with age (up to +10 days); extra days per number of children.

Sick leave

15 working days per year, paid by the employer at 70% of gross wage. Employers may choose to pay the first 5 days at 100%. After the 15 days, the employer pays one-third of the sick pay; the Hungarian State Treasury notifies the employer of the exact amount afterward.

Maternity leave

24 weeks (168 calendar days): 4 weeks before the birth and 20 weeks after.

Paternity leave

Private sector: 10 days (+2 for twins). Special leave of up to 44 days at reduced pay.

Short-term childcare leave

Employees are entitled to short-term paid childcare leave. This type of special leave is certified by the employee's doctor.

Other leave

Unpaid leave: Unpaid leave is usually granted at the employer's discretion, but Hungarian labor law makes it compulsory in certain cases.

Employees must request unpaid leave in writing at least 15 calendar days in advance, for example for long-term childcare leave.

Compassionate leave: when a close family member of the employee (e.g., a spouse or grandparent) is seriously ill or in a life-threatening condition and requires care.

Emergency and short absence leave.

Military service.

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Employment termination in Hungary

In Hungary employers have the following options for terminating an employment contract:

Termination by mutual consent

Termination by mutual consent is not regulated by express provisions of Hungarian labor code, because it allows the employer and employee to agree freely, in writing, on the conditions of termination.

However, terminating employment this way is very common and widely supported, because the parties waive all further claims, subject to an individually agreed severance payment and notice period.

Termination during the probationary period

During the probation period, either the employer or the employee may terminate the employment in writing, with immediate effect and without giving a reason.

Expiration of a fixed-term employment contract

When the employment contract expires then such employment is automatically terminated.

Resignation by the employee

Employees may terminate an open-ended employment contract at any time by giving written notice. The notice period is 30 days, unless the contract sets a longer one, and no justification is required. For fixed-term contracts, the employee must give a reason, and special rules apply to which reasons are acceptable.

For fixed-term contracts, the employee must give a reason, and only serious grounds qualify, such as circumstances that make continuing the employment impossible or would cause the employee disproportionate harm.

Termination by notice

Minimum 30 days; extended by employer based on length of service (up to 90 days). Employees may provide resignation in writing; notice period is min. 30 days.

Employers must justify the termination in writing; the reason must be clear, true and documented, and the employer must be able to prove it.

Special rules apply to fixed-term contracts. The employer may terminate by notice only in limited cases: liquidation or bankruptcy proceedings, reasons related to the employee's ability, or an unavoidable external reason that makes the employment impossible to maintain. An employee who resigns from a fixed-term contract must also give a reason, showing that continuing the employment would be impossible or would cause disproportionate harm.

Dismissal without notice

The employer or employee may terminate an employment relationship without notice if the other party:

  • willfully or by gross negligence commits a grave violation of any substantive obligations arising from the employment relationship; or
  • otherwise engages in conduct that would render the employment relationship impossible.

The right of termination without notice may be exercised within 15 days of learning of the grounds, and in any case no later than one year after the grounds occurred or, for a criminal offense, until the statute of limitations expires.

In the case of termination without notice, both the employer and the employee must give their reasons.

Fixed-term contracts: an employer may end a fixed-term contract with immediate effect without justification, but must pay the employee for the remaining term, up to a maximum of 12 months.

Severance pay

From 3 yrs service: +1 month; scaling up to 6 months at 25+ yrs of employment; +1–3 months near retirement.

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XPANDIUM - Hire your employees in Hungary

The Hungarian labor market operates under the labor code, which ensures fair and transparent labor practices and protects the rights of both employers and employees.This labor code specifies rules and procedures that companies must comply with when hiring employees in Hungary and includes regulations regarding working hours, paid or sickness time off, termination and maternity benefits as well.

Ensuring labor practices are correctly implemented requires a thorough understanding of the labor code, and implementing it correctly can be a time-intensive task. Non-compliance with the labor code can be costly and lead to fines and sanctions for the offending company. XPANDIUM understands the importance of these regulations and will work diligently to prevent any potential pitfalls, allowing your business to flourish in Hungary's dynamic market.

XPANDIUM can assist your company in navigating the intricacies of the labor market when you hire employees in Hungary. With our extensive knowledge of the Hungarian labor code, we offer you seamless guidance and support, ensuring proper labor practices are always maintained.

1
Tell us the role
Share the role, start date and salary. We send you the full monthly cost before you make an offer.
Request a quote →
2
We employ them
We issue a compliant Hungarian contract through our own local entity and register your new hire with the authorities.
3
You manage the work
Your employee works for you day to day. We run payroll, taxes and benefits, and send one monthly invoice.
9

Employer of Record in Hungary: FAQ

Answers to the questions companies ask us most before hiring in Hungary.

How much does an Employer of Record cost in Hungary?

The Xpandium EOR service fee in Hungary is €350 per employee, per month. On top of that, you pay the employee’s gross salary and employer taxes: 13% social security tax and 2.45% in local taxes (15.45% of gross in total), plus a rehabilitation contribution of HUF 12,105 per employee, per month (2026 rates).

Are there any other EOR costs?

A few may apply, and each is agreed with you in advance.

Occupational health: a job fitness medical exam is mandatory for every employee we employ in Hungary. As the EOR employer, we arrange it, and repeat it once a year. It costs HUF 9,800 per exam in 2026.

Advisory work: regular monthly payroll and related questions are included in the fixed monthly fee per employee. Advisory or consulting work beyond that is quoted in advance and starts only with your approval.

Relocation third-party services: available for EU citizens where applicable, and billed on a time-and-materials basis once the cost is agreed with you.

What is the difference between a payroll company and an EOR in Hungary?

A payroll company calculates salaries and files taxes for a business that already has its own Hungarian entity. An Employer of Record is the legal employer, so you need no entity in Hungary. Xpandium's EOR service includes full payroll: salaries in HUF, tax payments, contributions and payslips.

What are the employer taxes and payroll costs in Hungary?

The employer pays 13% social security tax on the gross salary, plus approximately 2.95% in local taxes. Net pay is approximately 66.5% of gross. The minimum wage is HUF 322,800 gross per month, and the guaranteed minimum wage for skilled roles is HUF 373,200, both effective January 1, 2026.

Is using an Employer of Record legal in Hungary?

Yes. EOR providers in Hungary are strictly regulated and must hold a valid agency license. Xpandium employs your staff through its own licensed Hungarian entity, on contracts governed by the Hungarian Labor Code.

Can a US or UK company hire in Hungary without a local entity?

Yes. With Xpandium as the Employer of Record, a company based in the US, the UK or anywhere else can hire in Hungary without setting up a Hungarian company (Kft). Our Hungarian entity is the legal employer, and you manage the work.

How long does EOR onboarding take in Hungary?

Agreeing on the terms and signing the EOR service agreement and the employment contract usually takes from a few days to one week. Once the agreements are signed, we can onboard your employee within 24 hours.

Can you employ non-EU citizens in Hungary?

In Hungary, we are licensed to employ Hungarian and other EU nationals in professional and white-collar roles. We cannot employ non-EU citizens.

Can our EOR employee work in another EU or EEA country?

Posting an EOR employee to work in another EU or EEA country generally requires a temporary work agency license in that country and compliance with its posting rules.

Short business trips for small, closed meetings are the usual exception: for example, strategy discussions, contract negotiations with a client or performance reviews, within the time limits each country sets.

If the host country's conditions are not met, the employee cannot work outside Hungary, whether at a client's office, a company site or a home office. Tell us before any planned trip so we can check that country's rules together.

Can you help us find candidates in Hungary?

Yes. Xpandium also offers recruitment for professional and executive roles, so we can find and hire the right person for you.

Can we start with an EOR and open our own Hungarian entity later?

Yes. Many companies use an Employer of Record to enter the market first. When you set up your own Hungarian company (Kft), your employees can move to it. The EOR employment ends first and a new contract starts with your entity; we coordinate the timing with you and each employee.

What makes Xpandium different from other EOR providers in Hungary?

Xpandium employs your team through our own Hungarian entity, with no third party in between. You get human-led payroll support in Hungarian and English, and one clear monthly price.

Ready to hire in Hungary?

Tell us the role and salary, and our local team will send you the full monthly cost before you commit to anything.

Contact Us

No commitment · A real person, not a ticket system · Questions welcome