How is payroll managed in Hungary?

In Hungary, employees are subject to a flat income tax rate of 15%, along with social contributions amounting to 18.5%. Employers benefit from a relatively low social contribution rate of 13%, which is among the lowest in Europe.

What are the standard employment regulations?

Employees in Hungary are entitled to a minimum of 20 days of paid vacation annually. After reaching the age of 25, this entitlement increases by one day every three years throughout their twenties, and then every two years during their thirties and forties.

What should be considered when dismissing an employee?

To lawfully dismiss an employee in Hungary, employers must adhere to a strict procedure, which includes issuing proper notice and providing written termination documentation. Severance payment is often required, with the amount varying based on the employee’s age and length of service. It’s recommended to consult with one of our employment law specialists prior to initiating a contract termination.