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Minimum wage in Hungary
Payroll in Hungary
Statutory benefits in Hungary
Other employee benefits in Hungary
Payroll and benefits in Hungary
Before employing workers in Hungary, potential employers should have a solid understanding of the rules that apply to payroll. For example, employers in Hungary must withhold both taxes and social security contributions from their employees’ wages and remit them to the proper authorities. Payments to employees can be made in cash or by bank transfer and must be in the local currency, the Hungarian Forint (HUF).
We’ll cover all of these requirements and more in this section on payroll in Hungary. We’ll also talk about the mandatory benefits that all employees are entitled to in Hungary, whether these are provided through the social security system or directly by the employer. Lastly, we’ll discuss additional benefits that Hungarian employers can choose to offer to their teams as extra incentives. All of this will help you to both ensure compliance with the law and give your Hungarian employees the payroll and benefits experience they expect and deserve.
Minimum wage in Hungary
The minimum wage in Hungary is defined by the government each year, in collaboration with the National Economic and Social Council. In 2024, the government reached an agreement with a forum representing employers that would see the minimum wage increased to 50% of the average gross earnings by 2027. This will be done in incremental stages by raising the minimum wage each year.
Minimum wage in Hungary in 2025
As of 2025, the minimum wage in Hungary is HUF 290,800 per month for full-time employees (about EUR 718). The minimum wage for positions requiring at least a secondary education or equivalent voluntary training is HUF 348,800 per month for full-time employees (around EUR 861). This is referred to as the ‘guaranteed minimum wage’ in Hungary.
Minimum wage in Hungary per hour
The Hungarian minimum wage is expressed as a monthly figure for full-time employees. For an employee working 40 hours per week, this breaks down as follows:
- HUF 1,677 per hour.
- HUF 13,421 per day.
- HUF 67,107 per week.
- HUF 3,489,600 per year.
Employees earning the guaranteed minimum wage (the minimum for skilled roles) will earn:
- HUF 2,012 per hour.
- HUF 16,098 per day.
- HUF 80,492 per week.
- HUF 4,185,600 per year.
Minimum wage in Hungary after tax
The minimum wage in Hungary is the amount employees must be paid before taxes and social contributions are deducted. An employee earning the Hungarian minimum wage of HUF 290,800 per month would end up with a take-home monthly income of HUF 193,382. There are tax allowances for families and recently married couples, which can reduce the amount of tax that employees have to pay.
Minimum wage in Hungary for international students
There is no specific minimum wage in Hungary for international students. Students who work alongside their studies must be paid at least the minimum wage or the guaranteed minimum wage, depending on their role.
Payroll in Hungary
Employees in Hungary are typically paid monthly, receiving their wages on the last day of the month. They must receive their wages by the 10th of the following month at the latest. The Hungarian currency is the Forint (HUF), and the tax year runs from 1 January to 31 December.
Tax withholding and reporting in Hungary
Employers in Hungary are responsible for calculating, withholding and remitting income tax due on their employees’ wages. Income tax in Hungary is changed at a flat rate of 15%. This applies to all employees except those under the age of 25, who are exempt from income tax.
Employers have to prepare a monthly declaration detailing the tax and social contributions they owe to the authorities. The deadline for both filing and payment is the 12th of the following month. Non-resident employers have the same filing and withholding obligations as resident employers. However, if they fail to comply with regulations, the burden shifts to the employee.
Employees have to file a personal tax return each year by 20 May (or 20 November in certain cases). To facilitate this, Hungarian employers must provide their employees with both a tax contributions certificate and a social contributions certificate by 31 January each year.
Social security contributions in Hungary
Social security contributions are another important part of running payroll in Hungary. Employers are responsible for paying both employee and employer social security contributions. Employers’ social contributions amount to 13% as of 2022, when it decreased from 15.5%. Employee contributions add up to 18.5% of salary, which breaks down as follows:
- Pension contributions: 10%.
- Healthcare contribution: 4%.
- Healthcare contribution for financial allowance: 3%.
- Unemployment fund: 1.5%.
13th-month pay in Hungary
Unlike in some other European countries, the 13th salary is not obligatory in Hungary. Employers can choose to provide bonuses to their employees at their discretion, either company-wide or on an individual basis.
Other requirements for payroll in Hungary
Salaries and wages must be paid in Hungarian Forint (HUF), and payments can be made by cash or bank transfer. Employers must provide a written receipt for cash payments. It’s possible to pay electronically from foreign bank accounts.
Employers in Hungary must issue payslips to employees each pay cycle, detailing their earnings, deductions, and the amount of income tax and social security contributions paid. These can be either paper or electronic. Employers must keep payroll records for at least seven years.
Statutory benefits in Hungary
Benefits are another important part of an employee’s total remuneration. In Hungary, certain benefits are required by law, while others are optional for employers. The Hungarian social security system also provides employees with certain benefits funded by employer and employee payroll contributions. The following benefits are mandatory in Hungary.
Pensions in Hungary
Employees in Hungary are entitled to different types of pensions when they retire. The basic pension is called the ‘First Pillar’, and it’s paid for through social security contributions by both employers and employees.
The Second Pillar is now only available to existing members after being dismantled between November 2010 and March 2012. The Third Pillar refers to voluntary contributions made by employees. The normal retirement age for men and women in Hungary is 65 for those born in 1957 or later.
Annual leave and other leave in Hungary
All employees in Hungary must be granted at least 20 days of annual leave per year, with employees accruing extra leave days according to their age. They are also entitled to other types of leave, including sick leave, maternity leave, paternity leave, and parental leave.
Occupational health and safety training in Hungary
Employers in Hungary must provide all employees with occupational health and safety training. This training must happen during working hours and be fully funded by the employer. Employees should take part in one initial training session when they start a new job. Then, training must be provided annually for most employees and quarterly for those working in high-risk environments.
Other employee benefits in Hungary
Employers in Hungary can choose to offer their employees additional benefits, even though they aren’t required by law. This can help employers to attract and retain talent by improving their employer value proposition.
Social, welfare, and cultural benefits in Hungary
Employers in Hungary are required to fund social, welfare, and cultural services that benefit their employees and their families. How this funding is used is decided at the company’s general meeting. For example, it can be used for:
- Transport to and from the workplace.
- Work clothing and uniforms.
- Employee meals (canteens, buffets, etc.).
- Employee holiday records.
- Library cards or computer clubs.
- Other social and cultural benefits.
Other employee benefits in Hungary
In addition to the above, employers in Hungary can choose to provide the following benefits:
- Medical insurance: Employees in Hungary can access healthcare through the social security system, but waiting times can be long and standards of care are inconsistent. This makes private medical insurance a popular employee benefit in Hungary.
- Group life, accident, and health insurance: This type of employee benefit provides employees (or their families) with a payout in the event of their death, disability, or critical illness. It’s also a popular benefit in Hungary.
- Cash bonuses: Many companies in Hungary offer their employees cash bonuses as an additional incentive. These may be offered to all employees or only those who meet certain work targets.
- Flexible working hours: Flexibility on when and where work is completed is becoming a more popular employee benefit around the world, including in Hungary. It helps employees to better manage their work-life balance and can lead to better performance overall.
- Mobile phone allowance: Some companies pay their employees telephone costs and/or provide them with company mobile phones as an additional employee benefit in Hungary.
- Company equipment: Many employees in Hungary are also provided with other company equipment such as computers and accessories. This can be seen as a type of employee benefit.
Employee perks in Hungary
Employers in Hungary may also provide additional perks to their employees, which might include:
- Tickets for sports events.
- Holiday gift cards.
- Wellness allowances.
Compliant, seamless payroll and benefits in Hungary and beyond
Getting payroll and benefits right is not just a legal issue. Every country also has its own customs, norms and expectations about employee compensation. And if your operations aren’t in line with your workers’ expectations, they may not stick around for long.
Thankfully, we know what we’re doing. When you work with CXC to engage workers in Hungary, we’ll handle everything from tax withholding to employee bonuses on your behalf.
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