Hungary
Capital: Budapest
Currency: Hungarian Forint- HUF
Hungary: Overview of Labor Law and Employment Policies
Employment Law Overview
- Key Legislation:
- Labor Code (Act I of 2012)
- Labor Law (Act XXII of 2012)
- Social Security Act (Act LXXX of 1997)
- Legal Characteristics:
- Aims to protect employee rights and promote employment
- Sets standards for minimum wage, working hours, vacation, and severance pay
- Emphasizes negotiation and cooperation between employers and employees
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts (maximum 5 years)
- Indefinite-term contracts
- Contractual Terms:
- Must include base salary, job function, place of work, and contract duration
- May include a probationary period (maximum 3 months)
- Language and Currency:
- Contracts must be written in Hungarian
- Currency is the Hungarian Forint (HUF)
Working Time Regulations
- Standard Working Hours: 40 hours per week, 8 hours per day
- Rest Days and Breaks:
- At least 1 rest day per week
- At least 12 hours of rest per day
Vacation Policy
- Annual Leave: Minimum of 20 days of paid annual leave per year
- Public Holidays: 12 nationwide public holidays
- Special Leaves:
- Sick leave: 15 days of paid sick leave
- Maternity leave: 24 weeks of paid maternity leave
- Paternity leave: 5 days of paid paternity leave
- Parental leave: Unpaid parental leave available until the child reaches 3 years of age
Employee Dismissal and Contract Termination
- Notice Period:
- Standard notice period is 30 days
- Notice period can be extended up to 90 days based on years of service
- Severance Pay:
- Employees are entitled to severance pay after 3 years of service
- Severance pay ranges from 1-6 months' salary, depending on years of service and age
- Unfair Dismissal Protection:
- Employers must have a valid reason for dismissing an employee
- Employees can appeal unfair dismissals
Taxation
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Personal Income Tax:
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Salary Range Tax Rate 0 - 30,000 0% 30,000 - 45,000 10% 45,000+ 15%
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Social Security Contributions:
- Employer: 13%
- Employee: 9.5% (social insurance) + 7.5% (health insurance)
Health Insurance
- Insurance Policy:
- Employees are required to participate in the national health insurance scheme
- Coverage:
- Basic medical services, dental care, and hospitalization
Compensation and Benefits
- Minimum Wage: HUF 232,000 per month
- Compensation Structure:
- Base salary, bonuses, allowances, etc.
Work Permits and Visas
- Permit Requirements:
- EU/EEA citizens do not require work permits
- Non-EU/EEA citizens require work permits
- Application Process:
- Employer applies for work permit on behalf of employee with the Immigration Office
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Hungary
- Common Provisions:
- Restrict employees from using or disclosing confidential information after termination of employment
- Restrict employees from working for competitors for a specified period
Training and Development
- Legal Requirements:
- Employers must provide safety training and opportunities for skill development to employees
- Government Support:
- Government provides funding and incentives to support employee training
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on race, gender, religion, or other protected characteristics
- Enforcement Measures:
- Employers must develop and implement anti-discrimination policies
- Employees can file complaints for discrimination
Remote Work Policies
- Legal Framework:
- Remote work is legally recognized in Hungary
- Tax and Insurance Implications:
- Tax and social security implications of remote work depend on specific circumstances
Authoritative Website Addresses
- Hungarian Ministry of Labor: https://munka.gov.hu/
- Hungarian Social Security Administration: https://www.tb.hu/