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Minimum wage in Hungary

Payroll in Hungary

Statutory benefits in Hungary

Other employee benefits in Hungary

Compliant, seamless payroll and benefits in Hungary and beyond

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 set annually by the government in consultation with social partners. Under the multi-year agreement reached with employer and employee representatives, the minimum wage is being increased incrementally each year, with the objective of reaching around 50% of average gross earnings by 2027.

Minimum wage in Hungary

As of 2026, the statutory minimum wage levels are:

Minimum wage (all roles): HUF 322,800 per month (gross, full-time)
Guaranteed minimum wage (skilled roles): HUF 373,200 per month (gross, full-time)

The guaranteed minimum wage applies to positions requiring at least secondary education or vocational qualifications.

Minimum wage in Hungary per hour

The minimum wage is defined monthly. For a 40-hour workweek, this equates approximately to:

Standard minimum wage

HUF 1,860 per hour
HUF 14,900 per day
HUF 74,500 per week
HUF 3,873,600 per year

Guaranteed minimum wage (skilled roles)

HUF 2,150 per hour
HUF 17,220 per day
HUF 86,100 per week
HUF 4,478,400 per year

(Amounts are rounded and based on a standard full-time schedule.)

Minimum wage in Hungary after tax

The minimum wage figures above are gross amounts, before personal income tax and social security contributions. An employee earning the 2026 minimum wage of HUF 322,800 gross per month would typically receive a net monthly income of approximately HUF 214,000, depending on personal circumstances.

Tax allowances are available for:

families with children.
newly married couples.

These allowances can significantly increase net take-home pay.

Minimum wage in Hungary for international students

There is no separate minimum wage for international students. Students working alongside their studies must be paid at least the statutory minimum wage or the guaranteed minimum wage, depending on whether the role qualifies as skilled.

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.

Want to find out more?

FAQ's

What are the steps to process payroll in Hungary?

Processing payroll in Hungary involves registering the employee, collecting payroll information, calculating gross-to-net pay, withholding taxes and social security contributions, paying the employee, and reporting the required payroll information to the National Tax and Customs Administration (NAV).

For each payroll period, the employer records salary, working time, leave, bonuses, allowances and other changes that affect pay. Payroll then calculates personal income tax and employee social security contributions, applies any eligible tax allowances, and calculates the employer’s social contribution tax.

The employer issues the payslip and pays the employee, generally in Hungarian forints (HUF). It must also file the required payroll information with NAV and pay the relevant taxes and contributions. Monthly taxes and contributions are generally declared and paid by the 12th day of the following month.

Employers must keep payroll records accurate and update them when employment circumstances change, including new hires, departures and absences.

Do you need a legal entity to run payroll in Hungary?

No, a foreign company does not need a Hungarian legal entity to run payroll in Hungary. It can register as a foreign employer and outsource the payroll administration to a local provider while remaining the employee’s legal employer.

The foreign employer must obtain tax registration, register its employees, calculate pay in Hungarian forints unless a statutory exception applies, and make the required tax and social-security filings. It also remains responsible for employment contracts, payslips, payroll records and local employment rules. Paying an employee through an overseas payroll without completing the Hungarian registration and reporting steps is not sufficient.

With payroll outsourcing, the provider can calculate gross-to-net pay, prepare payslips and payment files, submit statutory returns and maintain payroll records. The company supplies approved salary, benefits, working time, leave and employee changes and funds the payments. This allows the company to retain the direct employment relationship while using local payroll support instead of building the necessary payroll capability internally.

What payroll taxes must employers pay in Hungary?

Employers generally pay social contribution tax at 13% of the employee’s gross taxable pay. Through payroll, they must also calculate and withhold personal income tax and social-security contributions from the employee’s earnings. The standard rates are set out below.

Employer social contribution tax at 13% of gross taxable pay.

Employee personal income tax withheld at 15%.

Employee social-security contribution withheld at 18.5%.

Tax allowances and exemptions can reduce personal income tax for eligible employees, so the final calculation depends on the declarations and supporting information supplied. Certain employment categories and employer incentives may also change the amount due. The family contribution allowance may also reduce an eligible employee’s social-security contribution where the personal-income-tax allowance cannot be used in full.

Employers running payroll in Hungary report the relevant earnings, taxes and contributions to the National Tax and Customs Administration and pay them by the statutory deadlines.

The 13% employer charge sits on top of gross salary rather than reducing the employee’s net pay. Employers must add this charge, benefits and any provider fees when calculating the full cost of the hire.

What are the benefits of outsourcing payroll in Hungary?

Outsourcing payroll in Hungary allows a provider to handlefor calculations, filings, payslips and payment checks, so the employer does not need to build a local payroll team. This can help a foreign company with a small local workforce or an HR team that does not routinely work with Hungarian rules.

A provider can maintain the payroll calendar, apply tax and social-security changes, check employee data and prepare reports for finance. It can also include new hires, departures, leave and benefit changes in the correct pay run. That gives the employer a clear record of what was approved and reported.

Responsibility does not disappear when payroll is outsourced. The company still needs to supply accurate information, approve the results and oversee the provider. The legal employer remains responsible for meeting its statutory obligations. The service should set clear deadlines, responsibilities and steps for correcting errors. The company gains local payroll support, but it keeps control of employment and management decisions.

How much does payroll administration cost in Hungary?

The cost of administering payroll in Hungary generally ranges from about 5,000 to 35,000 HUF per employee per month. This is a commercial market estimate rather than a statutory or regulated fee. Basic payroll processing sits near the lower end, while services that include wider HR administration and employee support cost more. The final price depends on the provider, headcount and services included.

Providers may charge per employee, apply a minimum monthly fee or quote one fee for the complete service. Variable pay, several benefits, frequent starters and leavers, information from other countries and custom reports can increase the cost. Set-up, year-end work and corrections outside the normal payroll may be charged separately.

Companies should confirm whether the quote covers calculations, filings, payslips, payment files, employee questions and finance reports. They should also check for VAT, implementation fees and minimum charges.

The most useful comparison is the total monthly cost for the planned workforce, including every required service rather than only the headline per-employee fee.

What payroll records must employers keep in Hungary?

Employers running payroll in Hungary must keep records showing how each employee’s pay, deductions and employer charges were calculated and reported. The records should show how the contract terms and monthly payroll data produced the payslip, tax filing and payment.

Core records include contracts and amendments, employee registration data, tax declarations, time and absence records, gross-to-net calculations, payslips, payment evidence and returns submitted to the National Tax and Customs Administration. Documents supporting benefits, expenses, bonuses and termination payments should be retained with the relevant payroll period.

An employer needs a retention schedule covering the relevant employment, tax, accounting and social-security rules. One deletion date won’t suit every record. Payroll files also contain personal and financial data, so access needs to be limited. Clear file names, version control and an audit trail help the employer answer queries without rebuilding a calculation from several systems.

What is the minimum wage in Hungary?

The gross monthly minimum wage in Hungary is 322,800 HUF for a full-time employee from 1 January 2026. A higher guaranteed minimum of 373,200 HUF applies to full-time roles that require at least secondary education or a vocational qualification. The rate depends on what the job requires, not the qualifications the employee happens to have.

The minimum wage also has weekly, daily and hourly rates, while part-time employees receive a proportionate amount. Employers must choose the correct rate based on the qualification the job requires, not simply the qualification the employee holds.

These are gross amounts before personal income tax and employee social-security deductions. Benefits or allowances do not automatically replace the required base wage, so base pay must still meet the statutory minimum. Because the rates can change by government decree, payroll should apply the figure in force for the relevant pay period.

What are the salary expectations in Hungary?

National statistics indicate a broad gross monthly benchmark of approximately HUF 618,000 to HUF 746,000, based on the July 2026 median and average, while experienced professional and specialist roles can command HUF 800,000 to HUF 1 million or more, particularly in Budapest.

Actual salary expectations vary significantly by occupation and seniority. Technical skills, foreign-language requirements and experience working in multinational environments can push salaries higher, while salaries in regional locations are often lower than in Budapest.

For context, Hungary’s median gross monthly earnings were HUF 618,200 in July 2026 and average gross earnings were HUF 745,500. These are economy-wide figures for that month rather than salary ranges for a particular position. Employers should therefore benchmark the specific role, seniority and location when setting an offer.

What statutory employee benefits must employers provide in Hungary?

Statutory employee benefits in Hungary include paid leave, social-insurance coverage and workplace protections. These entitlements sit alongside salary and cannot be replaced by a higher cash payment.

Mandatory benefits include at least 20 working days of basic annual leave, with additional leave linked to age and certain family circumstances. Employees also have statutory rights connected with sickness, maternity, paternity and parental responsibilities. Payroll contributions fund access to state healthcare, pensions and cash benefits, while employers must meet occupational health and safety duties.

The employer pays some entitlements directly, while the social-security system provides others. HR must record the leave, and payroll must apply the correct pay or benefit. A collective agreement or employment contract may provide more generous terms. Private medical cover, meal support and other supplementary benefits can help recruitment, but they sit outside the statutory minimum and need clear documentation.

How can CXC help companies manage payroll in Hungary?

CXC can manage payroll in Hungary on behalf of international employers, including salary calculations, tax and social security deductions, statutory reporting and employee payments.

We also support payroll changes for starters, leavers, leave, bonuses and benefit updates, so HR and finance teams do not need to manage each local payroll requirement themselves.

For companies operating across several countries, CXC can combine Hungary with wider international payroll support, giving teams one provider for local payroll administration across multiple markets.

Speak to our team to learn more about payroll in Hungary with CXC.

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