Compensation and benefits are often what attract candidates to certain positions. Providing well-rounded compensation and benefits in Hungary will help your company’s open positions stand out from other job openings and bring in the best candidates. Plus, meeting or exceeding Hungary’s compensation laws and statutory benefits requirements will ensure that you stay compliant.
That said, it’s difficult to find the time to source benefits and figure out the right level of compensation when you’re also trying to run your company. G-P can make your expansion less stressful through our Employer of Record (EOR) model. We’ll use our Hungary subsidiary to help you expand faster, while managing all compliance matters, so you can focus on your business.
Hungary compensation laws
Part of Hungary’s compensation laws is a minimum wage that differs by education. Typically, employees working a basic 40-hour week in a position that doesn’t need specific qualifications make at least HUF 266,800 a month. Employees in positions requiring secondary education should make at least HUF 326,000 a month.
Employees typically work 8 hours a day for 5 days a week. Employees should work no more than 250 hours in overtime each year, which must be paid 50% on top of gross salary, but if the overtime work is conducted on weekends or public holidays, the compensation is 100%.
Guaranteed benefits in Hungary
All Hungary benefits management plans must include guaranteed benefits required by law. You can start by providing paid time off for Hungary’s 11 public holidays and at least 20 days of vacation each year. The amount of vacation increases based on the age of the employee. For example, employees up to 25 get 20 business days off each year, while employees 45 years of age and over get 30 business days off a year.
Hungary guarantees maternity leave, paternity leave, and parental leave. Pregnant employees should get at least 24 weeks of maternity leave that must start 4 weeks before the scheduled delivery date. During maternity leave, the employee should make 70% of their average salary. Fathers are entitled to 5 days of paternity leave within 2 months of the date of birth. One parent is entitled to parental leave at 70% of previous earnings until the child reaches 2 years of age.
Hungary benefits management
Your Hungary benefits management plan should also include additional benefits that aren’t required by law but are expected by employees. For example, employers sometimes offer additional private healthcare coverage.
Restrictions for benefits and compensation
You can’t disperse compensation and benefits until you incorporate in Hungary. The only alternative is working with a global Employer of Record (EOR) such as G-P. Companies can leverage our entity infrastructure to start working faster without having to set up a subsidiary in Hungary.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading global employment platform is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.