With a population of just over 9 million people, Hungary offers a wide range of opportunities for companies looking to expand. There are many types of company formations in Hungary depending on your business needs, which must be registered with the National Tax Authorities, Social Insurance Institute, and the Court of Firms before beginning operations.

 

Here are some labor and payroll considerations in Hungary:

  • Employment contracts must be in writing
  • Collective bargaining agreements are usually company-driven, but some CBAs can be based on the industry
  • Minimum wage is 150,000 HUF per month for unskilled labor, 200,000 HUF for skilled workers
  • Employers withhold income tax and social security from employee pay
  • New employees must have a Social Contribution Number and tax number when they register with the tax authority before beginning work
  • Pay stubs must be provided to employees monthly
  • If an employee is terminated, a T1041 form must be submitted to the National Tax and Customs Administration
  • An employer must advertise a job locally before hiring a foreign worker
  • Foreign workers from countries outside the EU/EEA need a work permit

To get started in Hungary, or to simplify your operations overseas, Blue Marble has cloud-based payroll with aggregated monthly reporting so you can view your payroll in real time across all countries and currencies. Our hybrid service model gives you access to a US-based service team and in-country experts to help when questions come up. Simplify your global operations in Hungary to ensure compliance with local regulations. Click here to get started