Hiring in Hungary: Employer Costs, Labor Laws and How to Hire
Hungarian employers pay a 13% social contribution tax on gross pay in 2026. The employee pays an 18.5% social security contribution and 15% income tax, both withheld by the employer. On a HUF 800,000 monthly salary, the employer's cost is HUF 904,000 a month.
Hiring someone in Hungary? This guide covers what an employee costs, the social contribution tax, the labor rules that apply, income tax, work permits and the ways a company outside Hungary can employ someone there.
Employer and employee contributions in Hungary, 2026
Key employment rules in Hungary
How to hire in Hungary
Hiring in Hungary comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Hungarian pay levels, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. A Hungarian entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to meet the rules in the employment table above. Pay in Hungary is usually quoted as a gross monthly salary in forints.
Your options for employing someone in Hungary
- Hungarian entity: you register a company in Hungary, run payroll and pay the social contribution tax yourself. It suits a team of several people in Hungary.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Hungarian payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you as a self-employed professional. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Hungary
Take a salary of HUF 800,000 gross a month in 2026.
- Employer social contribution tax: HUF 800,000 x 13% = HUF 104,000
- Employer cost: HUF 800,000 + HUF 104,000 = HUF 904,000 a month
Over a year that is HUF 9,600,000 in salary and HUF 10,848,000 in total cost. The employer also withholds the employee's 18.5% social security contribution, or HUF 148,000, and 15% income tax, or HUF 120,000. That leaves a net salary of HUF 532,000 a month, before any allowances such as the family tax allowance.
Minimum wage and pay
The minimum wage is HUF 322,800 gross a month and HUF 1,856 an hour from 1 January 2026, for full-time work. Jobs that need at least secondary education or a vocational qualification have a higher floor, the guaranteed wage minimum, of HUF 373,200 a month. The 2027 rates had not been set by decree on 3 November 2026; the government will publish them. Full-time employees earned an average of HUF 705,014 gross a month in 2025 and HUF 740,620 in August 2026, according to the Hungarian Central Statistical Office (KSH). See our Hungary minimum wage and average salary in Hungary pages.
Income tax in Hungary
Hungary has one flat personal income tax rate. The employer withholds it, together with the employee's social security contribution, from each salary payment:
| Withheld from gross pay, 2026 | Rate |
|---|---|
| Personal income tax | 15% |
| Social security contribution | 18.5% |
| Total withheld | 33.5% |
The 15% rate is set by § 8 (1) of the Personal Income Tax Act (Act CXVII of 1995). People under 25 can reduce their tax base with the under-25 allowance in § 29/F of the same act, up to a cap.
Work visas
- Permits for skilled workers: Act XC of 2023, § 6 (1), lists the Hungarian Card and the EU Blue Card for highly qualified people, as well as permits for intra-corporate transferees and researchers, and the Corporate Card. Workers can also come with a guest worker residence permit.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Hungary to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
How much does an employer pay in social contributions in Hungary?
13% of gross pay in 2026, as social contribution tax. The employee pays an 18.5% social security contribution, withheld from pay.
What does a HUF 800,000 monthly salary cost a Hungarian employer?
HUF 800,000 plus HUF 104,000 social contribution tax, for HUF 904,000 a month or HUF 10,848,000 a year.
How long is the notice period in Hungary?
30 days under Labor Code § 69. When the employer gives notice, it grows with service, by up to 60 days after 20 years. The parties can agree up to 6 months.
How long can probation last in Hungary?
Up to 3 months from the start of employment, under Labor Code § 45 (5). A shorter probation can be extended once, to 3 months in total.
Can a company outside Hungary hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- NAV, The rate of the social contribution tax. Checked 3 Nov 2026.
- NAV, Contributions payable from 1 January 2026. Checked 3 Nov 2026.
- Nemzeti Jogszabálytár, Act CXVII of 1995 on personal income tax. Checked 3 Nov 2026.
- Nemzeti Jogszabálytár, Act I of 2012, Labor Code. Checked 3 Nov 2026.
- Nemzeti Jogszabálytár, Government Decree 426/2025. (XII. 23.). Checked 3 Nov 2026.
- KSH, Monthly gross earnings of full-time employees by economic branch. Checked 3 Nov 2026.
- Nemzeti Jogszabálytár, Act XC of 2023 on the entry and residence of third-country nationals. Checked 3 Nov 2026.
