If Hungary’s not on your radar for expansion, it should be. The talent pool is strong, costs are competitive, and you’re hiring right in the middle of Europe.
Still, the moment you dive into the details, things get tricky fast. Contracts need to follow Hungary’s labor code down to the letter, payroll reporting runs through government portals you’ve never used, and if you’re bringing in talent from abroad, work authorization and visa approvals can slow things down to a crawl.
This guide breaks down what you need to know clearly and simply so you can hire and pay employees in Hungary without getting stuck in the fine print.
Hiring process in Hungary
If you’re hiring Hungarian citizens, you’ll start with a written contract in Hungarian that covers all the basics: job title, salary, hours, benefits, and notice periods. It has to follow Hungary’s Labor Code. Before the first day of employment, you’ll also need to notify the National Tax and Customs Administration (NAV) using the ONYA portal. Then you’ll register them for social security, confirm they have a tax ID, and make sure their salary can be paid into a Hungarian bank account.
If you’re hiring foreign nationals, EU and EEA citizens don’t need a work permit but still must register with the authorities. Non-EU citizens will need a combined work and residence permit (the “Single Permit”), which employers apply for through Hungary’s immigration authority. Once the permit is approved (it usually takes several weeks), you can continue onboarding them like a local hire. For more details, see this guide to Hungary’s work visa requirements.
Key documents include a passport, a tax ID number, a TAJ number, proof of Hungarian residence, and a signed contract.
Payroll and compensation essentials
Once your hire is set, payroll is next. Hungary has clear rules about pay cycles, reporting, and benefits, and it pays to get them right.
Employees are paid monthly, typically by the 10th of the following month, via local bank transfer. Employers report earnings and deductions to NAV each month and must provide payslips either digitally or on paper.
As of 2025, Hungary’s gross minimum wage is HUF 266,800 (around US$807) per month. Skilled roles have a guaranteed minimum of HUF 326,000 (about US$982). Employers often go beyond this with extras like 13th-month bonuses, SZÉP cards (a government-backed benefit system for food, leisure, and accommodation), or transportation subsidies. Don’t forget the 13% employer social tax, which adds to your total cost of employment.
For a global perspective on payroll, check out How to Pay International Employees: U.S. Employers.
Legal and regulatory considerations
Hungary’s labor code is straightforward if you stick to the rules. That means:
- Issue a compliant contract before day one
- Notify NAV through ONYA when hiring
- Submit payroll taxes and employee contributions on time
- Track working hours and leave accurately
The most common mistakes? Missing NAV registration deadlines, using contracts that don’t meet local standards, or overlooking collective bargaining agreements.
Cost assessment for employers
Hungary is cost-effective compared to Western Europe, but payroll taxes and benefits add to your bottom line. For example, a gross monthly salary of HUF 500,000 requires a 13% social contribution, adding HUF 65,000 and bringing the total employer cost to HUF 565,000 (US$1697). You’ll also budget for mandatory health checkups, paid leave (20 days minimum), and partial sick leave coverage.
Hungary’s Data Protection Act mirrors the EU’s GDPR, so handle employee data carefully.
Tips for a smooth setup
Hiring in Hungary can feel overwhelming, but a few resources keep things manageable. Use the ONYA portal to file employee data, check the NAV portal for payroll updates, and review Hungary’s privacy rules to stay on the right side of data protection.
How Pebl helps you hire with confidence
Hungary’s workforce is worth the effort, but only if you get hiring and payroll right from the start. Clear contracts, timely reporting, and the right support make the difference between smooth growth and avoidable headaches.
Make the process easy with Pebl.
No local entity? No problem. Our employer of record services can hire on your behalf. You direct the work and we handle the contracts, compliance, and onboarding (including visa sponsorship).
But that’s not all. Our comprehensive offerings include:
- Centralized global payroll
- Global benefits and compensation packages
- Local experts in 185+ countries worldwide
Want to see what hiring in Hungary could look like for your business? Let’s talk.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
© 2025 Pebl, LLC. All rights reserved.
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