Hungary

• New Year's Day
• National Day
• Good Friday
• Easter Monday
• Labour Day
• Pentecost Monday
• Hungary National Day
• Republic Day
• All Saints' Day
• Christmas Day
• Boxing Day

Working Hours

The standard work week in Hungary is 40 hours, and employees cannot work more than 12 hours a day.

Two resting days a week are permitted. Sunday is a mandatory resting day. Employees are entitled to 11 hours of uninterrupted rest within 24 hours, 20 minutes if they work more than six hours, and 25 minutes for more than 9 hours.

Overtime hours are calculated at 15% for nighttime work and double the wage for overtime and resting days.

Minimum Wage

Minimum salary: unskilled workers are entitled to Forint 232,000 per month, and skilled workers are entiteld to Forint 296,400.

Employee Tax

Tax rate	15%
Social security contribution	18.5%

Bonuses

In Hungary, bonuses are not mandatory. But employers may provide discretionary benefits to senior employees, such as a mobile telephone or company car.

Other benefits may include private medical insurance, travel expenses, food vouchers, etc.

Employment contracts in Hungary must be in writing and are either indefinite or fixed-term contracts, and should include:

• Employer and employee details
• Start date
• Job title and responsibilities
• Workplace
• Working hours
• Salary and leave entitlement
• Contract length (if applicable)
• Notice period
• Non-compete clauses for senior management positions
• Customer non-solicit clauses

Fixed-term contracts are not permitted to exceed five years.

An employee who works over the expiry of the contract is considered an indefinite contract employee.

The minimum probation period is 30 days and the maximum is three months, unless otherwise mutually agreed.

Annual Leave

The minimum leave entitlement in Hungary is 20 working days and increases with age. Extra vacation days are allocated to parents, who are primary caregivers and single parents. The days added depend on the number of children.

Sick Leave

Employees with 12 months of service are entitled to 15 days of sick leave a year, and employment for less than 12 months is proportioned.

The employer pays 70% of the gross wage for the first 15 days and one third after the 15 days. The Hungarian Health Insurance pays the remaining two thirds of the sick pay.

Parental Leave

• Maternity leave: 24 weeks, with four weeks scheduled before delivery.
• The employee is also entitled to a leave of absence, until the child reaches the age of three.
• Paternity leave: 5 days within the first two months of the birth.

Termination Process

In Hungary, the termination of an employee by the employer is with written notice stating the reasons.

Valid reasons concerning a dispute include:

• Incompetence
• Misconduct

An employee may defend the claims and may progress with a court appeal.

The notice period depends on the employee's length of service and is a minimum of 30 days and a maximum of 1 year.

Severance Pay

Severance pay depends on the reason for the dismissal and the employee's length of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.