Employment·Apr 30, 2026·5 min read

Hiring Employees in Hungary: Legal Basics

If your business is growing and you're ready to hire, here's what foreign business owners should know before bringing on your first employee in Hungary.

Registering as an employer

Before hiring, you must register your business as an employer with the relevant authorities and NAV. This is typically a formal step separate from your initial company registration.

Employment contracts

Written employment contracts are required and must include key terms (role, salary, working hours, start date)
Hungarian labor law sets minimum standards for notice periods, paid leave, and termination procedures
Contracts are typically drafted in Hungarian, though bilingual versions are common in practice

Payroll and contributions

As an employer, you're responsible for withholding personal income tax and social contributions from employee wages, plus paying employer-side social contribution tax on top of gross salary — this meaningfully increases your total cost beyond the net salary figure.

Budgeting tip: total employer cost is typically 10–15% higher than the gross salary alone, once employer contributions are added — many first-time employers underestimate this.

Ongoing obligations

Monthly payroll filings and contribution payments are due by the 12th of each month. Missing these deadlines can result in penalties, so it's worth setting up a reliable process from the start.

We can help you get this right

Payroll and employment compliance is one of the areas where local guidance makes the biggest difference. Reach out before you make your first hire.