Overview

Capital
Budapest
Currency
Forint (HUF)
Date Format
yyyy.mm.dd.

Taxes

Employer
0.74% - Health Care Contribution for Financial Allowance
19.50% - Social Contribution Tax
1.50% - Vocational Training Fund
Employee
4.00% - Health Care Contribution for Inkind Fund
3.00% - Health Care Contribution for Financial Allowance
20.00% - Pension Fund
1.50% - Vocational Training Fund

Minimum Wage

General
Minimum wage is 447.7EUR ($508) for unskilled workers, and 576EUR ($675.76) for skilled workers.

Working Hours

General
Full Time employment is considered 40 hours weekly, and 8 hours daily.
Overtime
Overtime work is paid at 150% regular wages.

VAT

General
27% standard rate.

Payment

Payroll Frequency
Payment is due every month at the end of the month.

Mandatory Benefits

Pension Fund
27% of gross monthly payroll in the form of a social contribution tax. The minimum earnings used to calculate contributions are the monthly minimum wage. The monthly minimum wage is 111,000 forints. There are no maximum earnings used to calculate contributions. The employer's contributions also finance work injury benefits, sickness and maternity benefits, and unemployment benefits.
Social Security
Contributions are made as 33% of average earnings for the first ten years of coverage. * From years 11 - 25: 2% is added each year. *From years 26 - 36 : 1% is added. * From years 37 - 40 : 1.5% is added. * From year 40 onward: 2% is added.

Termination

Termination Process
Employers must provide 30 days advance notice and severance pay if appropriate.
Advance Notice
Employees must provide 30 days advance notice Employees must provide 30 days advance notice.
Severance Pay
Severance pay shall be the sum of the absentee pay due for: * 1 month, for up to three years of service; * 2 months, for up to five years of service; * 3 months, for up to 10 years of service; * 4 months, for up to 15 years of service; * 5 months, for up to 20 years of service; and * 6 months, for up to 25 years of service.