Employer of Record & PEO in Hungary

Hire & manage teams remotely in Hungary without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Native Language


Employee Protection


Payroll Frequency


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Forint (HUF)



English Speaking



9.62 Million

Employment Cost


Cost of Living


How NNRoad Employment & PEO Services Work?

NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Hungary. Registering a legal entity in Hungary as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Hungary in full accordance with local labor laws in under a week.

Employer of Record in Hungary

Employer of Record (EOR) services are for companies who do not have a legal entity in Hungary, but who want to hire in Hungary. Employment and full liability are outsourced to NNRoad.

➊ You interviews & select the candidates you want to hire in Hungary.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes  payroll in Hungary in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Hungary while NNRoad manages payroll & HR liabilities.

  • Engaging employees through local labor contracts including contract administration, engagement, extension termination and conversion to permanent hire
  • On-boarding and off-boarding employees following local labor law practice
  • Registration of employees with social security board and with tax office
  • Complete payroll solution and mandatory benefit administration
  • Payments of local taxes and local social contributions to the relevant authorities
  • Payment management, including invoicing customers/clients and salary payments
  • Support with Visa and Work permit applications

Payroll & PEO in Hungary

Professional Employment Organization (PEO) services are for companies who have a legal entity in Hungary, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

➊ You interviews & select the candidates you want to hire in Hungary.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Hungary while NNRoad manages payroll & HR compliance.

  • Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules
  • Registering all local employees with the social security board, if required
  • Calculation of gross salary, salary deductions, such as withholding taxes, social insurances, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive/bonus, allowance, etc. if applicable
  • Preparation of income statements for the tax office and the Social security administration
  • Pro-rata calculation for people who join/resign
  • Monthly issue of electronic pay-slips
  • Prepare annual payroll related reconciliation report

Advantages of NNRoad's Hungary Employment Services

  1. With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Hungary.
  2. Pay as you go
  3. ​​Dedicated account manager – One point of contact for multiple locations
  4. Employment & termination processing
  5. Complete payroll solution and statutory benefit according to local laws
  6. With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Hungary.
  7. NNRoad only works with professional locally licensed partners
  8. GDPR compliant
  9. NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
  10. NNRoad provides foreigner VISA application services, if needed

Employment Compliance in Hungary

Taxes & Payroll in Hungary

Employee Income Taxes:

Hungarian personal income tax (PIT) is assessed on the following:

  • Domestic-source income.
  • Foreign-source income, provided the individual is resident in Hungary.

Tax Brackets

The PIT rate is 15% of taxable gross income.

Employer Costs in Hungary

Employer Contributions:

Employers must pay contributions based on the salary of their employees:

15.50% – Social Contribution Tax
1.50% – Vocational Training Fund

Total employment costs: 17%

Employee Contributions:

7% – Health Care Contribution
10% – Pension Fund
1.50% – Unemployment Fund

Total employee cost: 18.50% 

Working Hours in Hungary

Working Hours per Week

The standard working time in Hungary is 8 hours per day, 5 days per week.


Hungary allows a limit of 250 hours of overtime per year (or up to 300 if specified in the CBA). In Hungary, overtime pay is negotiated between the company and the employee.

Benefits & Insurance in Hungary

Occupational Rehabilitation Contributions

In the first three quarters, taxpayers must pay the advance on contributions for rehabilitation purposes, computed according to the relevant legislation, by the 12th day of the month following the quarter. By the 25th February of the next tax year, the difference between the advances paid and the yearly contribution must be paid for the tax year.

Vocational Training Contribution

The health insurance and labor market contribution base of the person subject to contribution responsibilities will be used to assess the contribution for vocational training. The contribution rate for vocational training will be 1.5 percent of the social security tax base.

Termination Laws in Hungary

Employers can end a fixed-term contract for a variety of reasons, including commercial, personal, or employee misconduct. It necessitates formal notice and an explanation for the termination. If the reason is misconduct, the employee must be given a warning and given the opportunity to explain his or her actions.

When an employment relationship is terminated by notice, the employee must receive the final wage payment no later than the fifth working day following the termination of the employment relationship.


The amount of severance compensation is normally 1-6 months of absence pay, depending on the duration of service. Employees close to the retirement age are usually entitled to an additional 1-3 months of absence pay, depending on the length of their employment.

Holidays in Hungary

Public Holidays in Hungary

  • New Year’s Day – January 1
  • Revolution Day – March 14-15
  • Good Friday – April 15
  • Easter – April 17-18
  • Labour Day – May 1
  • Pentecost – June 5-6
  • Saint Stephen’s Day – August 20
  • Republic Day – October 20
  • All Saint’s Day – November 1
  • Christmas – December 24-25-26

Paid Leave in Hungary

All employees are entitled to a paid vacation of 20 days every year, which increases according to the employee’s age to a maximum of 30 days for employees over 45 years of age.

Employment Contract in Hungary

Employment Contract

An employment contract must be signed in writing in Hungary. If the employee raises an objection to this within 30 days of the start of work, the contract will be voided. In Hungary, there are two types of contracts that are used:

  • Indefinite employment contract: this is the most common type of contract used in Hungary for indefinite employment.
  • Fixed-term employment contract: this is also used in Hungary, but it must be specified explicitly in the contract and both the employer and the employee must agree to it. A fixed-term contract cannot last more than five years.

Probation Period

In the Hungarian employment contract, the parties may stipulate a probation period of not more than three months from the date of commencement of the employment relationship. 

Types of Leaves in Hungary

Sick Leave

Employees are entitled to 15 paid sick days, which are paid by the employer. Based on the average wage over the past six months, they receive 70.00 percent of their compensation rate.

Maternity Leave

Women are entitled to 24 weeks of maternity leave, but they can take up to three years and still be eligible for maternity benefits.

Mothers are eligible for a 70.00 percent Pregnancy and Confinement Benefit (CSED) for the first six months of their pregnancy. Mothers are entitled to a Child Care Fee (Gyermekgondozási dj – GYED) for the next eighteen months, or until their child turns two, at a rate of 70.00 percent of their earnings, up to a maximum of double the minimum wage.

Paternity Leave

A father is entitled to five days of paid paternity leave (seven days if the birth is numerous or problematic), which must be taken within two months of the birth.

Immigration Laws in Hungary

For foreign nationals to enter Hungary to work, they need to apply for one of the work permits. Visas that foreigners can apply for are:

  • Long stay visa (D)
  • Working Schengen Visa
  • Schengen Business Visa
  • Seasonal Employment Visa
  • EU Blue Card


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