Living and working conditions: Hungary

Implementation 

This category is not applicable to Hungary.

Living and working conditions

This category is not applicable to Hungary.

Where to find opportunities 

This category is not applicable to Hungary.

Funding and support

This category is not applicable to Hungary.

Living and working conditions 

no information available

Where to find opportunities

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Funding and support

no information available

Real estate agents and brokers, advertising brochures, real estate websites, social media sites provide help in your search for housing whether you wish to buy or rent a property.  

In early 2025, detailed data was available for 2 400 of the nearly 7 200 newly built homes offered for sale nationwide. The average price per home was HUF 61.2 million, which represents a slight increase from 2024, when it was HUF 59.8 million. The average price per square metre of the new residential units across the country was around HUF 1.04 million.

In Budapest, the average price of a newly built home was HUF 75 million in the first three quarters of 2024, marking a HUF 5 million increase year-on-year. Outside the capital, regarding new homes only a few large cities recorded a significant number of sales. For instance,

in Siófok, the average price per square metre exceeded the level seen in Budapest, reaching HUF 1.35 million.

Price per square metre in Győr,

Kecskemét and

Nyíregyháza was HUF 860 000, HUF 780 000 and HUF 660 000 respectively.

The average sales price of pre-owned homes was HUF 28.1 million in Q3 of 2024. The average price per square metre of pre-owned homes increased to HUF 472 000, reflecting a moderate rise relative to previous quarters.

In Budapest, the average price of a pre-owned flat was HUF 46.8 million, down by HUF 4 million compared to the previous quarter. The price per square metre was around HUF 915 000. Prices for different types of buildings showed mixed trends in the capital city:

The price per square metre of detached houses increased by 4.8%, reaching an average of HUF 719 000.

The prices of condominiums rose by 1.2%.

The prices of panel apartments in housing estates remained largely unchanged.

For smaller apartments (50-70 m²), monthly rents, excluding utilities, typically range from HUF 170 000 to HUF 220 000, though rental prices may vary widely depending on the region.

When looking for a rental, it is also worth keeping an eye on listings posted in social media groups and pages. For tenants, it remains important to be prepared for unexpected situations, such as a change in property ownership, which may require finding a new rental on short notice.

When looking for an apartment, and making a decision alongside price, it is important that the condition of the property, its location, transportation, the characteristics of the neighbourhood, and the reliability of neighbours should remain crucial considerations.

It is always important to find out about common expenses (which include the costs of cleaning, waste collection and maintenance) and public utility charges. Does the dwelling have separate water, gas and electricity meters, as older dwellings may still have flat-rate billing (no separate meters), which is based on an estimate. In any case, flats should be taken over along with documents specifying the last read position of utility meters, also clarifying the frequency of payment, whether it is based on regular meter reading (monthly/quarterly/half-yearly/yearly notification by phone) or a flat-rate is applied.

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When moving to Hungary, the first step should be to gather information about the types of educational institutions available in the prospective residential area and its surroundings, and to check whether there are available places for the child. It is very important to bring all the documents required for enrolment from the child’s previous school, such as report cards, evaluations, and medical certificates. 

In Hungary, the system of educational institutions is as follows:

Kindergartens (ages 3 to 6),

Primary schools (years 1 to 8),

Secondary schools (4-, 6-, or 8-grade grammar schools, vocational secondary schools, technical schools),

Higher education (colleges, universities, professional training programs).

For primary schools and four-grade secondary schools, the principle of territorial admission remains in effect, giving priority to children living within the designated region. Applicants from outside the local area may also apply for the remaining available places.

Admission to the 6- and 8-grade grammar schools is based solely on entrance exams – the principle of territorial admission does not apply in this case. Generally, no entrance exam is required for admission to primary schools and kindergartens, whereas admission to secondary schools and higher education institutions is based on centrally organised written and/or oral examinations.

When choosing a kindergarten or a primary school, it is important that the institution be close to the child’s home, whereas when selecting a secondary school, it is important to give greater consideration to the child’s abilities and future goals. When considering grammar schools and technical schools, it is advisable that information on their rankings be gathered in advance, as these are based on performance in final examinations, language proficiency tests, academic competitions, and entrance exams.

Apprenticeship-based employment relationship

Any person enrolled as a student in a VET institution operating in Hungary, or any person enrolled for a training course in an adult education institution (hereinafter referred to as ‘students’) may participate in vocational education provided by the dual training place within the framework of an apprenticeship contract.

The apprenticeship contract establishes apprenticeship between students and places providing dual training. Under an apprenticeship contract, students accept the terms and conditions of participating in vocational education and training and undertake to participate in vocational education and training under the guidance places providing dual training, and places providing dual training undertake to employ students in the vocational education and training programme, and provide support laid down in the Act on Vocational Education and Training for students.

Students are entitled to receive a salary for the work performed under an apprenticeship contract. The relevant legislation sets monthly salaries as a percentage of the mandatory lowest amount of the monthly salary applicable on the first day of the first month of the current year. Students are entitled to receive, in addition to a salary, the remuneration in July and August after the end of the academic year similar to the remuneration provided for any employee in a position filled in the possession of the qualification needed for the trade chosen by the student at a place providing dual training.

The apprenticeship is governed by the Act on the Labour Code (hereinafter: Mt.), subject to the derogations laid down in the Act on Vocational Education and Training. Based on that, students have the same rights as those to which employees are entitled under the Labour Code, in particular, interest representation, occupational health protection, job safety, remuneration and rest periods. However, the student is also bound to abide by the obligations of any worker, which are specific in certain cases. Student performance is assessed and marked by both places providing dual training and VET institutions.

In addition to VET institutions, economic chambers (www.mkik.hu and www.nak.hu) also play an important role in supporting the organisation of vocational education at dual training sites. After an aptitude test has been carried out, the competent chamber acting as the designated authority registers the dual training places and subsequently monitors their activities related to vocational education and training.

Equal Opportunities and Support

In Hungary, the children of EU citizens enjoy the same rights as Hungarian children.

They are eligible for academic scholarships.

Provided that they are full-time students, they may apply for a student ID card.

They may participate in state-funded education.

Foreign language or minority-language education (e.g. in German, Slovak, Romanian and Croatian) is also available at multiple locations.

At the end of 2024, nearly 1.03 million households in Hungary had at least one school-aged child, and the number of students exceeded 1.48 million. The average monthly expenditure on schooling amounts to approximately HUF 16 200 per child. At the start of a school year, families spend an average of HUF 35 000 to 45 000 per primary school pupil on school supplies, clothing, and other items.

Significant support is available within the Hungarian education system:

95% of students receive textbooks free of charge or at a discounted price,

More than 60% of school-aged children are eligible for subsidised or free school meals.

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The implementation of the principle of free movement of people, is one of the cornerstones of our European construction, has meant the introduction a series of practical rules to ensure that citizens can travel freely and easily to any Member State of the European Union. Travelling across the EU with one’s car has become a lot less problematic. The European Commission has set a series of common regulations governing the mutual recognition of driving licences, the validity of car insurance, and the possibility of registering your car in a host country. 

Your driving licence in the EU

The EU has introduced a harmonised licence model and further minimum requirements for obtaining a licence. This should help to keep unsafe drivers off Europe's roads - wherever they take their driving test.

Since 19 January 2013, all driving licences issued by EU countries have the same look and feel. The licences are printed on a piece of plastic that has the size and shape of a credit card.

Harmonised administrative validity periods for the driving licence document have been introduced which are between 10 and 15 years for motorcycles and passenger cars. This enables the authorities to regularly update the driving licence document with new security features that will make it harder to forge or tamper ­- so unqualified or banned drivers will find it harder to fool the authorities, in their own country or elsewhere in the EU.

The new European driving licence is also protecting vulnerable road users by introducing progressive access for motorbikes and other powered two-wheelers. The "progressive access" system means that riders will need experience with a less powerful bike before they go on to bigger machines. Mopeds will also constitute a separate category called AM.

You must apply for a licence in the country where you usually or regularly live. As a general rule, it is the country where you live for at least 185 days each calendar year because of personal or work-related ties.

If you have personal/work-related ties in 2 or more EU countries, your place of usual residence is the place where you have personal ties, as long as you go back regularly. You don't need to meet this last condition if you are living in an EU country to carry out a task for a fixed period of time.

If you move to another EU country to go to college or university, your place of usual residence doesn't change. However, you can apply for a driving licence in your host country if you can prove you have been studying there for at least 6 months.

Registering your car in the host country

If you move permanently to another EU country and take your car with you, you should register your car and pay car-related taxes in your new country.

There are no common EU rules on vehicle registration and related taxes. Some countries have tax-exemption rules for vehicle registration when moving with the car from one country to another permanently.

To benefit from a tax exemption, you must check the applicable deadlines and conditions in the country you wish to move to.

Check the exact rules and deadlines with the national authorities: https://europa.eu/youreurope/citizens/vehicles/registration/registration-abroad/index_en.htm 

Car Insurance

EU citizens can insure their car in any EU country, as long as the chosen insurance company is licensed by the host national authority to issue the relevant insurance policies. A company based in another Member State is entitled sell a policy for compulsory civil liability only if certain conditions are met. Insurance will be valid throughout the Union, no matter where the accident takes place.

Taxation

Value Added Tax or VAT on motor vehicles is ordinarily paid in the country where the car is purchased, although under certain conditions, VAT is paid in the country of destination.
More information on the rules which apply when a vehicle is acquired in one EU Member State and is intended to be registered in another EU Member State is available on this link https://europa.eu/youreurope/citizens/vehicles/registration/taxes-abroad/index_en.htm.

Hungary is a full member of the Schengen Area. Nationals of the European Union (EU) and the European Economic Area (EEA), as well as Swiss nationals, may enter Hungary with a valid passport or identity card and are entitled to visa-free short stays of up to three months. 

Hungary is a party to the European Agreement signed in Paris on 13 December 1957, which allows nationals of the signatory Member States to enter the country even if their passport or identity card has expired, provided that the expiry date is no more than one year prior to entry and their stay does not exceed 90 days. This regulation still applies.

Non-EU nationals – entry of family members

Family members of EU citizens who are not themselves EU nationals may enter, provided that:

they hold a valid travel document; and

if they arrive from a country whose nationals are required to obtain a visa for entry, they must also obtain an entry visa.

Such visa is free of charge and is issued in an expedited procedure.

Exception: no visa is required if the family member holds a residence card issued by another EU Member State to the family member of an EU citizen. In this case, they may enter the territory of Hungary without restriction.

Residing in Hungary

The first three months

EU citizens and their family members accompanying or joining them are not required to register with or notify authorities during the first 90 days of their stay.

Their stay is lawful if they hold a valid document.

Stay exceeding three months

If an EU citizen or their family member intends to stay in Hungary for more than 90 days, at least one of the following conditions must be met:

They take up employment or engages in self-employment.

They are enrolled in studies at an institution in Hungary,

or they can secure their own and their family members’ livelihood and health insurance from their own resources.

Notification obligation:

EU citizens must apply for a registration certificate,

non-EU family members must apply for a residence card, which is valid for up to five years.

This document certifies lawful residence in Hungary and enables the establishment of a permanent residence.

Address registration and address card

After the right of residence has been recognised, the competent government office automatically issues the official address card (address certificate).

Any subsequent change of residence must be reported to the municipal government office or document office competent for the new address.

Authorities Responsible for Residence Matters in Hungary

In Hungary, matters related to the residence of foreign nationals, except for visa issues, are handled primarily by the Ministry of Interior and the National Directorate-General for Aliens Policing (Hungarian abbreviation: OIF), its subordinate body, and its regional directorates. (Formerly: Office of Immigration and Asylum)

Regarding visa issuance and visa policy, authority lies primarily with the Ministry of Foreign Affairs and Trade (KKM), particularly regarding visa applications submitted to Hungarian diplomatic missions abroad.

On the official website of the OIF (https://oif.gov.hu) information in Hungarian, English and German is available on the following:

• procedures (for obtaining e.g. a registration certificate, a residence card or a permanent residence permit),
• the conditions for administration procedures, and
• the contact information for the regional directorates and client service offices.

Regulations governing permanent residence and expulsion

EU citizens and their non-EU family members acquire the right of permanent residence after five years of lawful and continuous residence in Hungary. A permanent residence card serves as evidence that the person concerned has acquired the right of permanent residence.

Expulsion is only possible in exceptional cases, for example, if the person concerned

• has failed to comply with the obligation to leave the country,
• submitted false data or referred to false facts during the entry process or their residence,
• Their stay poses a real, direct, and serious threat to the fundamental interests of Hungarian society – in particular:
  • public order,
  • public safety,
  • national security, or
  • public health.

If an EU citizen or their family member suffers from a communicable disease during the first three months of residence that justifies mandatory treatment, but they refuse medical intervention, they may be subject to expulsion. Nevertheless, after the lapse of three months, this reason by itself shall no longer constitute a basis for expulsion.

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The importance of transparency and mutual recognition of diplomas as a crucial complement to the free movement of workers 

The possibility of obtaining recognition of one’s qualifications and competences can play a vital role in the decision to take up work in another EU country. It is therefore necessary to develop a European system that will guarantee the mutual acceptance of professional competences in different Member States. Only such a system will ensure that a lack of recognition of professional qualifications will not become an obstacle to workers’ mobility within the EU.

Main principles for the recognition of professional qualifications in the EU

As a basic principle, any EU citizen should be able to freely practice their profession in any Member State. Unfortunately the practical implementation of this principle is often hindered by national requirements for access to certain professions in the host country.

For the purpose of overcoming these differences, the EU has set up a system for the recognition of professional qualifications. Within the terms of this system, a distinction is made between regulated professions (professions for which certain qualifications are legally required) and professions that are not legally regulated in the host Member State.

Steps towards a transparency of qualifications in Europe

The European Union has taken important steps towards the objective of achieving transparency of qualifications in Europe:

• An increased co-operation in vocational education and training, with the intention to combine all instruments for transparency of certificates and diplomas, in one single, user-friendly tool. This includes, for example, the European CV or Europass Trainings.
• The development of concrete actions in the field of recognition and quality in vocational education and training.

Going beyond the differences in education and training systems throughout the EU

Education and training systems in the EU Member States still show substantial differences. The last enlargements of the EU, with different educational traditions, have further increased this diversity. This calls for a need to set up common rules to guarantee recognition of competences.

In order to overcome this diversity of national qualification standards, educational methods and training structures, the European Commission has put forward a series of instruments, aimed at ensuring better transparency and recognition of qualifications both for academic and professional purposes.

1. The European Qualifications Framework

The European Qualifications Framework is a key priority for the European Commission in the process of recognition of professional competences. The main objective of the framework is to create links between the different national qualification systems and guarantee a smooth transfer and recognition of diplomas.

2. The National Academic Recognition Information Centres (NARICs)

A network of National Academic Recognition Information Centres was established in 1984 at the initiative of the European Commission. The NARICs provide advice on the academic recognition of periods of study abroad. Located in all EU Member States as well as in the countries of the European Economic Area, NARICs play a vital role the process of recognition of qualifications in the EU.

3. The European Credit Transfer System (ECTS)

The European Credit Transfer System aims at facilitating the recognition of periods of study abroad. Introduced in 1989, it functions by describing an education programme and attaching credits to its components. It is a key complement to the highly acclaimed student mobility programme Erasmus.

4. Europass

Europass is an instrument for ensuring the transparency of professional skills. It is composed of five standardised documents

• a CV (Curriculum Vitae),
• a cover letter editor,
• certificate supplements,
• diploma supplements, and
• a Europass-Mobility document.

The Europass system makes skills and qualifications clearly and easily understood in the different parts of Europe. In every country of the European Union and the European Economic Area, national Europass centres have been established as the primary contact points for people seeking for information about the Europass system.

The parties in an employment relationship are the employer and the employee. As a rule, anyone aged 16 or over may take up employment. In exceptional cases (e.g. during school holidays while maintaining student status), employment is permitted from the age of 15 under the conditions set out in the Labour Code. 

Unless otherwise agreed by the parties, an employment relationship is established for an indefinite period and on a full-time basis.

Atypical forms of employment

In addition to traditional employment relationships, Hungarian labour law recognises and regulates several forms of atypical employment, which remain popular in 2025. These include part-time employment, fixed-term contracts, telework (including home office and hybrid arrangements), casual work performed under a piece-rate system (home-based work), temporary agency work, and foster parent employment relationships (a special form of social employment).

In the case of telework, work is not performed at the employer’s premises, but typically at the employee’s home or another location of their choice. Work is performed and transmitted electronically, using a computer and the Internet. Since the Covid pandemic, telework has become increasingly widespread, and the option to work from home is now featured in a significant number of employment contracts.

Temporary agency work

In the case of temporary agency work, the temporary work agency (the provider) concludes an employment contract with the worker, while the agency and the actual user undertaking (which supervises and directs the work) cooperate on the basis of a service or assignment contract. There is no direct legal relationship between the employee and the company providing the actual place of work.

Employment of students

Work performed through a school cooperative does not constitute an employment relationship but is carried out under a civil law contract. This form of work is primarily available to full-time students enrolled in daytime education. It is important that the remuneration paid for the work performed is not lower than the proportionate part of the applicable minimum wage.

It is important that the remuneration paid for the work performed should not be lower than the proportionate part of the applicable minimum wage.

Vocational training and apprenticeship contracts

Students participating in vocational training undergo practical training at an economic operator (company) based on a written apprenticeship contract (dual training system). The student receives a financial allowance, and the employer is eligible for social contribution reductions and tax reimbursements.

Simplified employment

Simplified employment continues to offer a legal framework for short-term, casual or seasonal work in the following areas: agricultural seasonal work, tourism-related seasonal work, casual work, and work as a film industry extra.

This form of employment involves less administration: the employment relationship can be reported by phone or online, and only the basic rules of labour law apply to the parties. In 2025, the daily wage for simplified employment must be at least 85% of the daily minimum wage, or at least 87% of the daily guaranteed minimum wage in positions requiring vocational qualifications.

There is also a simplified employment scheme. Accordingly, the simplified employment scheme can be applied when movie extras and temporary workers in the agricultural sector and tourism are hired for definite duration. In this case, simplification means that only the most important rules of labour law need to be applied. It also involves less paperwork to register and de-register.

Under Hungary’s public employment scheme, which follows a workfare-based approach, persons eligible for rehabilitation benefit, individuals registered as job seekers, as well as those who have submitted an application for recognition as a refugee, a beneficiary of subsidiary protection, or a person under temporary protection, may be employed for four, six or eight hours per day, for a period ranging from 1 to 11 months (people employed under Hungary’s public employment scheme, which follows a workfare-based approach). Subject to certain conditions, job seekers may be excluded from the workfare-based employment scheme. An entity qualifying as an employer under the workfare-based public employment scheme such as a state authority, a local government or a civil or church organisation, etc. enters into an official contract with the competent body of the state employment services, pursuant to which it undertakes to employ individuals in the workfare-based public employment scheme, who will carry out undertaken tasks including mandatory or voluntarily assumed state or municipal duties, as well as tasks supporting the implementation of local or community objectives, or community goals defined by the Government. Such activities may not be for profit or involve positions for which a public servant, public official or government official status is obligatory.

The average number of people employed in the period from December 2024 to February 2025 was 4 689 000. The number of individuals employed in the domestic primary labour market was 4 526 000. 62 000 were engaged in welfare-based public employment and 101 000 worked abroad. The employment rate in the 15-64 age group rose to 75.0%. The number of male employees stood at 2 487 000, translating into a 78.5% employment rate. The number of female employees was 2 155 000, with the rate of employment reaching 71.5%.

Au pair activity is a form of employment (classified as domestic work) under which the employed person assists private individuals (families) in the care, upbringing, and supervision of children. In return for these services, the au pair receives compensation (remuneration, accommodation, meals, language learning support), but this activity is not considered either a regulated profession or an independent legal relationship.

The Labour Code must be applied at performing arts organisations, taking into account the derogations set out in the Act on the specific employment rules applicable to artistic professions (e.g. that unless agreed otherwise, a fixed-term contract lasts until the end of the season).

Seasonal work

Overview

In 2023, there was a monthly average of 35 500 seasonal workers in agricultural. While agricultural migrant workers were much more frequent in the 1990s, their number has significantly decreased. There are about 30 000 to 50 000 migrant workers working in Hungary between May and October, the majority of whom arrive from Romania and Ukraine with a smaller percentage from Serbia. The need for seasonal workers is currently less than it was a couple of decades ago. In Hungary, fruit and vegetable production has declined to the point where much less manual labour is now needed.

Seasonal work as part of simplified employment

The simplified employment scheme has been an atypical employment scheme used in a number of sectors, for agricultural seasonal work, and in tourism seasonal work since 2010. It has a number of advantages, the reports are easy to file, and the tax burden is advantageous. Employment regulations have become more flexible since 17 April 2020: regarding casual and seasonal work in agriculture, forestry, animal husbandry, fishing and hunting, the annual duration prescribed by the law on simplified employment is 120 days.

Act on the Simplified Employment Scheme (Act LXXV of 2010) (Hungarian abbreviation: EFO) covers the following:

• seasonal work in the agricultural and tourism sectors,
• odd jobs,
• employment of extras in the film industry.

Employment status starts upon notification

The legal relationship between the parties starts upon the submission of the report to the tax authority by the employer. Employers can fulfil their registration and change notification obligations in the following ways:

• by electronically submitting form 20T1042E (using the one-stop client/company gateway)
• by calling the national customer service hotline (hotline: 185,
• by using the EFO app on a smartphone or tablet.

Tax liability

As of 1 February 2025, the daily public dues payable by employers for employees working under the simplified employment scheme are as follows:

• HUF 2 200 for agricultural and tourism-related seasonal work,
• HUF 4 400 for casual work,
• HUF 8 700 for casual work as a film industry extra.

Another change is that the daily net income from casual work as a film industry extra has been capped at 12% of the minimum wage, which amounts to HUF 34 900.

Due to the higher daily tax rate, the basis for calculating pension entitlement for employees under simplified employment is also being raised:

• for agricultural and tourism-related seasonal work: HUF 6 100 per day;
• for agricultural and tourism-related seasonal work: HUF 6 100 per day; and
• for casual work as a film industry extra: HUF 8 100 per day.

The employer has to pay only HUF 500 in taxes per day for each employee – or nothing for foreign seasonal workers, if the given worker provides proof of social insurance in the country of origin.

The rules of the Labour Code (the Mt.) and the provisions of the separate legislation pertaining to compulsory minimum wage and the guaranteed minimum wage shall apply to employment relationships established for the purposes of simplified employment (EFO).

On the basis of an employment relationship established under the EFO Act for the purpose of simplified employment at least 85% of the compulsory minimum wage or 87% of the guaranteed minimum wage is due as basic or piecework wage, in accordance with the specified conditions. From 1 January 2025, the mandatory minimum wage will increase to HUF 266 800 and the guaranteed minimum wage (minimum wage for graduates) to HUF 326 000.

Natural persons are not subject to assessing an income and submitting a tax return if their income from simplified employment does not exceed the product

• of the number of the calendar days of simplified employment
• multiplied by the amount of the statutory minimum wage (minimum wage)
• in force on the first day of the tax year (!) or,
• if they are eligible for at least 87% of the guaranteed minimum wage as a basic wage or piecework wage,
• 130% of amount of the guaranteed minimum wage
• set as daily wage.

This is the ‘exempted amount’. On the income received in excess of the exempted amount, the employee will be subject to personal income tax, which must be declared and paid in a personal income tax return.

Government Decree No 197/2022. (VI. 4.) also raised public dues on occasional work with effect from 1 July 2022. It applies to casual workers and relationships under the Simplified Employment Act established on or after 1 July 2022.

In the case of Section 7(2)(a) of the Efo Act, for each calendar day of employment, 0.5% of the minimum wage applicable on the first day of the month per employee, rounded to HUF 100 (i.e. HUF 1 300 per person per day for calendar days in the case of employment established after 1 January 2025) for agricultural and tourism seasonal work as defined in Section 2(1) and (2).

In the case of Section 7(2)(b) of the EFO Act, the minimum wage for each calendar day of employment is 1% of the minimum wage applicable on the first day of the month per employee, rounded up to HUF 100 (i.e. HUF 2 700 per person per day from 1 January 2025) in the case of casual work as defined in Section 2(3) of the EFO Act.

If a movie extra as defined in Section 2(8) of the EFO Act is employed under the simplified employment scheme for performing casual work, the rate of 3% of the minimum wage per employee per calendar day shall be rounded up to HUF 100 (from 1 July 2025 this, will be HUF 8 000/person/day), with the rate being rounded up to HUF 100. The allowance for movie extras will also be linked to the minimum wage from 1 July 2022. This is equivalent to 12% of the minimum wage rounded to the nearest HUF 100. This will increase to HUF 32 800 from 2025.

The pension fund linked to casual employment will also increase in line with the amount of public dues:

Notwithstanding Section 10(2) of the Efo tv., the calculation basis for the pension benefit is

• In the case of payment of public dues for agricultural and tourism-related seasonal work, the daily pension contribution base is set at 1.4% of the statutory minimum wage in force on the first day of the given month (HUF 3 736 per day as of 2025).
• In the case of payment of public dues for casual work and work as a film industry extra, the daily pension contribution base is set at 2.8% of the statutory minimum wage in force on the first day of the given month, rounded to the nearest HUF 100 (HUF 7 472 per day as of 2025).

Raised public dues will be payable for the first time in the case of employment relationships within the meaning of the Efo Act arising in the month of January 2023.

The minimum hourly rate to be paid in 2023 in the case of an employment relationship established for the purpose of simplified employment is:

1. at least 85% of the statutory minimum wage, i.e. HUF 1 304/hour; or
2. 87% of the guaranteed minimum wage for a skilled job, i.e. HUF 1 791/hour.

Daily exempt amount (below which no PIT is payable):

• In the case of unskilled workers: HUF 15 592
• for jobs requiring secondary education/qualifications: HUF 20 891

The maximum daily wage that can be paid in 2025: HUF 25 000/day/person.

The range of benefits that can be provided to seasonal workers is also limited: they are entitled only to pension, accident and healthcare services, and a jobseeker benefit but are not entitled to sick leave, maternity leave or unpaid leave.

Under the current employment scheme, non-EU citizens may only be employed for seasonal agricultural work.

Warnings

• Undeclared work is widespread in agriculture.
• Knowledge of Hungarian is essential.

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Employment is always established by means of an employment contract. Employment contracts must be set out in writing. It is the employer's obligation to ensure that the contract is set out in writing. In the case of the simplified employment scheme, subject to meeting the employer’s registration obligation, the legal relationship does not need to be set out in writing, unless the parties enter into the relationship using a template employment contract. 

Compulsory contents of the employment contract: agreement on 

• the job description,
• the place of work (if not stipulated, the place where the employee usually works),
• and the basic salary. 

Within 15 days from the start of employment at the latest, the employer must inform the employee of the daily working hours, other elements relating to pay, the date of salary payment, the method of calculating and scheduling annual paid leave, rules for determining the notice period applicable to the employee and the employer, and the person exercising employer’s rights, unless the period of employment is less than one month or the working hours are less than eight hours a week.

The employer and employee may only amend the employment contract in writing and by mutual consent. The law requires employers to propose an amendment to the employment contract when the employee returns from voluntary military service, maternity leave or unpaid leave taken for the purpose of caring for children or relatives. In this case, the amendment must be based on at least the annual average salary increase of employees doing the same work as the returning employee or, if no such employees exist, the average pay rise actually implemented by the employer. Parents returning from parental leave can unilaterally request in writing that their daily working hours be 20 hours per week. Civil and public servants, public prosecutors, professional personnel of armed forces and judicial employees have this right until their child reaches the age of three, whereas for employees with three or more children the right is extended until the child reaches the age of five. The employer is obliged to modify the employment contract or the position accordingly. 

Other employment relationships are government service relationships and civil service relationships (persons holding such relationships are public officials and civil servants), which are established by appointment. Government officials are persons working in a central state administration body or its regional or local units, and persons employed by the Police, the National Tax and Customs Administration (NAV), as well as those who are working in the field of law enforcement and disaster response. Public servants are persons employed by local government or a number of other institutions (the Hungarian Competition Authority, the Hungarian Academy of Sciences, Office of the President of the Republic, National Election Office, etc.) They are subject to certain conditions, such as having a clean criminal record and legal capacity and, in the case of government officials, a university degree or, exceptionally, a secondary school qualification. 

Under the Hungarian Civil Code, the parties may enter into outsourcing agreements or contracts for work. As a general rule, however, the choice of the type of contract establishing the basis for work may not limit or undermine the employee’s lawful interests (bogus contracts are punishable by law).

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As a general rule, employment may be entered into after reaching the age of 16. However, with the exception of employment in the workfare scheme, people over the age of 15 engaged in full-time studies may be employed during school holidays, and people under the age of 16 may be employed in cultural, artistic, sporting or advertising activities with the permission of the public guardian authority. 

A person younger than 18 is classified as a young worker and is subject to different rules. The consent of the legal guardian is required to validate any legal statement by a young worker or by a worker with partially restricted legal capacity in respect of the content of the job, as regards the conclusion, amendment or termination of the work contract or the obligations undertaken in it. Similarly, different rules apply in many cases to female employees, and especially expectant and breastfeeding mothers; such rules are mandatory in all cases.

As a general rule, employees may not be employed in jobs that may adversely affect them due to their physical constitution, health condition or development. 

Expectant mothers must be temporarily transferred to a line of work that is suited to their condition in terms of health, from the time pregnancy is confirmed until the child reaches the age of one, or the working conditions must be changed accordingly in the existing line of work. The consent of the employee is required to be assigned to a new line of work. 

Young workers, expectant mothers from the date of confirmed pregnancy to the third birthday of the child, single parents until the third birthday of the child and workers working under conditions which are hazardous to human health may not be employed for night work. 

These workers may not be required to perform extraordinary work or stand-by duty either, and the weekly days of rest must not be scheduled unevenly even with their consent. 

Disabled people may obtain special accredited qualifications, depending on their disability (e.g. confectioner training for the hearing impaired). Those employing at least 30 people with disabilities or a number accounting for more than 25% of their staff are entitled to an individual employers allowance or workplace conversion grant. The number of supported employees with reduced work capacity exceeded 33 000 in 2024.

In Hungary, refugees and foreign national beneficiaries of subsidiary protection status are entitled to take up employment without restrictions. As a rule, foreign nationals are allowed to take up employment with a work permit, but there are several exceptions. In employment, they must be treated equally in all respects, including remuneration, work safety, and trade union rights. To employ these groups, local authorities must adopt a local equal opportunities plan. Legal action may be taken to enforce employment rights, but a mediation procedure is also available or the matter may be referred to the Equal Treatment Authority or to the Commissioner for Fundamental Rights.

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Persons starting or terminating activity as a sole trader may notify the registration body either electronically via the client portal, using the form provided, or in person at the metropolitan or county district office (council one-stop-shop [Kormányablak]). The application must indicate the sole trader’s main personal data, the intended business and the main site or branch(es) where the business will operate from (places of commerce, manufacture or service), include documentation proving that there are no grounds for disqualification (e.g. certificate of good conduct), and provide any further data needed for notification to the National Tax and Customs Authority. A person may hold only one trading licence, which can be used to conduct several types of business and maintain several establishments and branches (places of commerce, manufacture or service). Sole traders have unlimited liability in respect of their entire assets for obligations arising from their operations. In addition to Hungarian nationals, EU and EEA citizens and people with equivalent legal status, people with immigrant or settled resident status, holders of a residence permit issued for the purpose of employment, family reunification or study and stateless people and other people granted admission who have been issued with a residence permit for humanitarian reasons are also authorised to pursue a business activity. A company may be a general unlimited partnership or a limited partnership without legal personality, or a limited liability company, a joint-stock company or a joint venture as a legal entity.  

The first step in establishing a business association is the conclusion of the articles of association; in the case of a company limited by shares, the statutes must be adopted, while in the case of a single-member company, a deed of foundation must be drawn up. The law prescribes a mandatory minimum share capital for two corporate types: HUF 3 million for a limited liability company (Kft.), HUF 5 million for a private company limited by shares (Zrt.), and HUF 20 million for a public company limited by shares (Nyrt.). For the purpose of registering and publishing the establishment of a company, notification must be sent to the relevant court of registration that keeps the records. The procedure is conducted electronically. The company information service of the Ministry of Justice (Igazságügyi Minisztérium) provides free access to up-to-date basic information on firms (subscribed capital, registered office, scope of activity, representative) based on name or tax number.

Self-employment in Hungary is not limited to sole traders, but includes all economic activities that may be conducted independently pursuant to legislation, where the person concerned is obliged to provide for their own health insurance and pension insurance cover. 

This includes lawyers, European lawyers, notaries, independent patent lawyers, independent court bailiffs, private pharmacists, veterinarians authorised to carry out veterinary service activities, community caretakers, private social service providers, etc.

Special funds and support are also available for small and medium-sized enterprises in 2025. 

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In Hungary there is a compulsory minimum wage, the amount of which is determined by the government on an annual basis.  

As of 1 January 2025, the amount of the minimum wage increased from HUF 266 800 to HUF 296 400 per month, to HUF 68 170 per week, HUF 13 630 per day, and HUF 1 704 per hour.

As of 1 January 2025, the guaranteed minimum wage for employees in positions requiring at least a secondary level of education or vocational qualification was set at HUF 326 000.

In 2024, the average gross monthly earnings in Hungary amounted to HUF 605 800, while the average net earnings were HUF 417 100 (source: Hungarian Central Statistical Office, May 2025).

Employees are entitled to receive from the employer the salary laid down in the employment contract, which must be adhered to. The salary may be fixed as a time-based rate or on the basis of output, or a combination of the two. Employees must be paid for additional hours worked on top of the salary for normal working hours. The salary due to the employee must be entered in the accounts and paid out in a single payment monthly in arrears, in forint, in cash or through bank transfer. However, the employer and employee may agree on different arrangements. Employees must be given a written, detailed salary slip (electronic statements are also acceptable), and deductions may be made from the salary only pursuant to the legal provisions, an enforceable decision or the employee’s consent. The payslip must show the employee's gross pay, the amount deducted in tax and social security contributions, and the net amount of salary paid. In certain cases, employers may even pay fringe benefits to their employees (e.g. contributions for meal, commuting to work, travel and other expenses under the ‘cafeteria’ (fringe benefits) scheme). Employers issue employees with a tax certificate of payments and deductions required for their tax returns.

Employers withhold the following contributions from private individuals’ gross income and pay them to NAV (National Tax and Customs Authority):

social security contribution (18.5%):

• and personal income tax (uniformly 15%); however, as of 1 January 2022, employees under the age of 25 are exempt from personal income tax

Deductions incumbent upon the employer:

• 13% welfare contribution tax,
• rehabilitation contribution (employers with more than 25 staff have to pay it annually in the amount of nine times the minimum wage, if the average number of people with disabilities they employ is less than 5% of the average number of staff).

The same rates of contribution apply to foreign employers. Payment is made monthly by the foreign employer or its representative or, in the absence thereof, by the employee, to the National Tax and Customs Administration’s bank account designated for this purpose.

For certain categories of employees, the employer is entitled to a reduction of the 13% social contribution tax.

Mothers are exempted from the payment of personal income tax (PIT) until the end of their lives if they have raised, are raising, or, at any time after 1 January 2019, will raise four or more children.

Artists, athletes and coaches may opt for the preferential tax type ‘simplified public dues contribution’. Taxpayers may choose the simplified contribution to public revenues to pay tax on income only if it was paid to them in HUF and did not exceed the legally imposed cap of HUF 60 million. There is a further condition regarding this cap, in that the income must be equal to at least 12 times the minimum wage. If the persons concerned have an annual income of at least 12 times the minimum wage taxed in accordance with the ordinary rules, on any amount in excess of that the employer pays a contribution of only 13% and the taxpayer pays only 15% tax on the gross salary. In addition to personal income tax, the income earned by non-resident performers and foreign crew members involved in the production of films from 1 January 2019 is subject to a 13% social contribution tax. Social contribution tax must be paid until the income earned in the given year reaches twenty-four times the amount of the minimum wage, which in 2025 is HUF 7 113 600 (296 400 × 24).

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As regards the concept of working time, the period from the beginning to the end of the period prescribed for the performance of work, including the duration of the preparatory and final work relating to the work. Apart from work of a stand-by nature, work breaks and the duration of a journey from home to work and return shall not be regarded as working time. General full-time employment means eight-hour workdays. This may be increased to a maximum of 12 hours for stand-by workers or if the worker is a relative of the owner. The job is of a stand-by nature if the employee is at the employer’s disposal for at least one third of the normal working hours without performing any work or there is significantly less work involved for the employee than in normal circumstances. 

The employee’s daily or weekly working hours may not exceed twelve or forty-eight hours, respectively. For stand-by jobs, the daily or weekly working hours may not exceed 24 or 72 hours, respectively. The full period of on-call duty must be considered working time if actual working time cannot be measured. The limits on working hours, the work regime and the rules governing the arrangement of working time are established by the collective bargaining agreement or, in the absence thereof, by the employer. The work regime may follow a general pattern (five days per week from Monday to Friday), or it may be undefined (the employee has the right to distribute the weekly working hours; in this case it does not affect the undefined nature of the work if the employee may perform some of their work tasks at a certain time or period of time due to their special characteristics). In order to protect employees, if uneven working hours are applied, the law specifies the minimum and maximum period of daily working hours. Accordingly, daily working hours may not be less than four hours. The employer’s operations may be uninterrupted (maximum six-hour break a day), shift work (operating at least 80 hours per week) or seasonal (related to a specific season in the year).

The employer may also specify the hours to be worked by the employee within a specific time frame. As a general rule, the reference period for working time may not exceed four months. However, in the case of continuous operations, multiple-shift work, seasonal activities, or on-call type jobs, the reference period may be extended to a maximum of six months. If justified by technical or work organisation reasons, a collective agreement may provide for a reference period of up to one year. In 2025, employers may require up to 250 hours of overtime per calendar year. Based on a written agreement between the employee and the employer, an additional 150 hours of overtime per calendar year may be ordered beyond the standard annual overtime limit (voluntary overtime). Employees may cancel the agreement as of the end of the calendar year.

Sunday is not classed as a working day. A 50% supplement is payable for Sunday work. However, Sunday work may form part of normal working hours in certain cases (e.g. where the nature of the business normally involves Sunday operation, seasonal work, work performed without interruption, or work abroad).

Work carried out between 10 p.m. and 6 a.m. is classified as night work. 

Employees may not be required to work and employers are not obliged to provide work during rest periods. 

Rest periods:

• breaks,
• daily rest periods,
• weekly rest day (or weekly rest period).

Breaks during the working day are the shortest type of rest period. They are to allow time to eat and rest during the working day. A 20-minute break may be taken during the day, if the daily working time is more than six hours. 

Except for stand-by work, the break does not count as working time. 

Employees must be allowed at least 11 hours of rest between completing one day’s work and starting the next day’s work. If an employer grants eight hours as daily rest period, the successive daily rest periods must be at least 22 hours. Travel time is not included in this period.

Employees are entitled to two rest days per week. Even if an employee may be required to work on Sundays as normal working hours, it must be ensured that at least one of the employee’s rest days per month is a Sunday. Instead of the weekly rest day, a weekly rest period may be granted, which is 48 hours without interruption and, once a month, must be scheduled to include a Sunday.

The Labour Code provides for working time reductions for certain employees, such as trade union officers, workers’ council members, employees pursuing primary education studies, and breastfeeding women. If required by law, for the period of working time reductions, the employees receive absence pay (which consists of the base salary, the flat-rate supplement, the piece rate and the wage supplement calculated on the basis of the average of six months). In the case of employees on monthly salaries, the amount of the absence pay varies according to the number of workdays in the month under the general employment rules.

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Employees are entitled to leave in each calendar year worked, based on how long they have been working. Part-time employees and pensioners in employment are also entitled to leave. Leave comprises basic and supplementary leave. The standard length of basic leave is 20 working days. Employees are entitled to supplementary leave depending on their age. Employees are entitled to longer supplementary leave in the year in which they reach a specific age. Length of supplementary leave: 

• one working day from the age of 25;
• two working days from the age of 28;
• three working days from the age of 31;
• one additional working day every two years up to the age of 45;
• 10 working days from the age of 45.

In addition to the above, employees are entitled to additional supplementary leave in certain cases. The Labour Code specifies the following types of supplementary leave: for young workers, workers bringing up a child under 16 years of age, workers working underground on a permanent basis, workers spending at least three hours a day in a workplace exposed to ionising radiation, fathers for the birth of a child, disabled workers, people entitled to disability benefits or benefits for the blind. 

If employment starts after the beginning or ends before the end of a year, the leave days due are calculated on a pro rata basis, except for the five days of supplementary leave granted to fathers for the birth of their child, which can be used in its entirety, irrespective of the start or end date of employment.

The employer is obliged to grant seven days of annual leave at a time requested by the employee, taken in two parts at the most, and the employee must notify the employer 15 days before going on leave. Once per calendar year, employees must be allowed to take at least 14 consecutive days of leave when they are exempt from the obligation to work or to be available for work. Employees must be notified that the leave is granted no later than 15 days before the start of the leave. The age-based supplementary leave may be granted until the end of the following year on the basis of the agreement concluded by the parties for the calendar year. The employer may interrupt the employee’s leave for a substantial reason that directly affects its operation or because of some exceptionally important economic interest, but must provide compensation for any costs and losses incurred.

Mothers are entitled to 24 consecutive weeks of maternity leave, of which two weeks must be taken; this counts as working time.

Employees, including managers, are entitled to unpaid leave

1. for childcare purposes until the child reaches the age of three;
   1. until the child reaches the age of ten, during the period of receiving child care allowance or child care support benefits;
   2. for up to two years, if personally caring for a relative who requires long-term nursing or care;
   3. for the duration of active voluntary reserve military service.

If unable to work, employees may take 15 days of sick leave per calendar year, during which time they receive 70% of their absence pay. If the sick days fall on a public holiday, the absence pay is only due to employees paid on an hourly or output basis. 

As a general rule, employees are not obliged to work on public holidays established by law, which are: 1 January, 15 March, Good Friday, Easter Monday, 1 May, Whit Monday, 20 August, 23 October, 1 November and 25 and 26 December. 

A 100% wage supplement is payable for work performed on a legal public holiday, on Easter or Whit Sunday or on a Sunday which would otherwise be a legal public holiday. By 31 October of the year preceding the reference year at the latest, the minister responsible for employment policy may regulate changes in the working time schedule of workers employed in the general work schedule as a result of public holidays. In doing so, the change shall not be declared as a working day on a Sunday and the change shall fall within the same calendar month.

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Employment can be for a definite or indefinite period. 

Employment is terminated upon the employee’s death, if the company is wound up without a legal successor, on expiry of the fixed period or if the employer is changed in such a way that at the time of handing over all or part of its activity (its organisation unit, financial and non-financial resources) the employer taking over is not subject to the Labour Code. Employment for an indefinite period may be terminated by mutual agreement between the employer and employee, by a notice of termination, or termination with immediate effect. The probationary period is a maximum of three months, or six months if provided for by a collective agreement.

Notice must be given in writing and takes effect upon being communicated to the party concerned. The employer is obliged to give reasons for termination, which must be clearly stated. A fundamental requirement for dismissal is that the statement of reasons must be true, reasonable and clear. In accordance with the case-law of the Court of Justice, failure to fulfil those cumulative conditions leads to the unlawful termination of the legal relationship by dismissal. In the case of employees who are within five years of retirement, of mothers and single fathers with children up to the age of three, or of employees receiving rehabilitation allowance or pay, notice on the grounds of employment-related conduct may be given only in severe instances. In the case of persons over the legal age of retirement, it is not necessary to give grounds for a notice of termination. 

Employees may terminate an indefinite employment contract at any time without giving grounds. However, in the case of fixed-term employment contracts an explanation must be given . The employer may give notice at any time, except in the following cases where termination is prohibited: pregnancy or the first six months of treatment related to human reproduction procedure in the case of female employees, provided that the employer is notified in advance. The employer may withdraw notice of termination in writing within 15 days of the notice being given. Further periods when termination is prohibited are maternity leave, unpaid leave used by either parent for the purpose of looking after a child, and the performance of actual voluntary military reserve service.

The notice period is at least 30 days, which, in the case of dismissal by the employer, may increase to 90 days depending on length of service. The parties may agree on a longer notice period not exceeding six months.

Fixed-term employment can be terminated by the employer giving notice during the winding-up or liquidation of the company, for reasons based on the ability of the employee or if the employment relationship becomes impossible to sustain due to unavoidable external reasons.

Severance pay is due if the employer terminates employment by notice or ceases to exist without a legal successor or if the employer taking over the employee is not subject to the Labour Code. A further condition for severance pay is that the employee must have been employed for at least three years by the employer. The employee is not entitled to severance pay if they are considered to be retired at the time notice is served or if the reason for termination is employment-related conduct on the part of the employee or the employee’s (non-health-related) abilities.

Both employers and employees may terminate an employment contract with immediate effect if the other party is in wilful or gross breach of any one of their material obligations arising from employment or their conduct makes the continuation of the employment relationship impossible. The right of termination with immediate effect may be exercised within 15 days of becoming aware of the reason on which it is based, but no later than one year from the date on which the ground occurred, or, in the event of the commission of a criminal offence, until the limitation period for criminal liability. If the body is entitled to exercise the right to terminate with immediate effect, the date of becoming aware shall be deemed to be the time when the body is informed of the reason for the termination with immediate effect, as the body exercising the employer’s powers.

Special rules apply to public servants, government officials and public officials. Employment is established for an indefinite period by appointment and the acceptance of such appointment. Both the appointment and the acceptance thereof must be in writing. The legal relationship may be terminated by resignation on the part of the employee, by dismissal on the part of the employer, by mutual consent, or with immediate effect by either of the parties during the probationary period. The period of notice for resignation or dismissal is two months or at least 60 days in the case of public servants, and may be up to eight months depending on length of service. In the case of dismissal or if the state administrative body is abolished without a legal successor, severance pay of up to eight months’ salary is due, increased by half if the person concerned is in the protected age group. Government officials reaching retirement age may apply to continue working. Authorisation to do so is ultimately at the discretion of the government.

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Representative bodies may be set up and operated in order to protect the economic and social rights of employees and to assert their interests more effectively. The two relevant forms of such bodies are trade unions and works councils. Employees are free to join or not join any trade union of their choice. If the number of employees exceeds 15 in the previous six months, they elect a works representative and if it exceeds 50, they elect a works council. The employer is obliged to notify the employees if these circumstances arise. If, despite such notification, no representative body is set up, the employer cannot be held responsible. These bodies represent employees in respect of their rights as regards a specific employer. 

One of the most important rights of a trade union is to enter into a collective bargaining agreement with the employer. Furthermore, it informs employees of their rights and obligations with regard to financial, social, cultural, living and working conditions, and represents its members in dealings with the employer, state bodies and courts in areas relating to labour relations and employment. It is also entitled to ask the employer for information relating to the employment of personnel, to issue opinions and initiate a consultation. A trade union may also check compliance with rules governing working conditions. Trade union officers are entitled to increased labour law protection against dismissal by the employer.

Trade unions are a social organisation, established on the basis of freedom of association. To establish a trade union, at least ten founding members must declare its formation, adopt its statutes, elect its administrative and representative bodies, and subsequently have the organisation registered by the court. The National Federation of Workers’ Councils has a consistently stable membership of over 40 000 and comprises nearly 60 member organisations operating at around 80 employers. The number of collective agreements concluded by the member organisations is 30. munkastanacsok.hu

• The Hungarian Trade Union Confederation (Hungarian abbreviation: MaSZSZ) has 104 000 members, the Democratic League of Independent Trade Unions (Hungarian abbreviation: LIGA) has 100 200 members, while the Forum for the Cooperation of Trade Unions (Hungarian abbreviation: SZEF) has 39 316 members. de.wikipedia.org
• In 2023, the Trade Union of Teachers (Hungarian abbreviation: PSZ) had 9 097 members, representing 5.13% of all teachers.magyarnemzet.hu
• In Hungary, the rate of trade union membership is low, at around 9%, which leads to fragmented membership fee revenues and limited resources for trade unions. szétaprózódásához vezet. ujegyenloseg.hu
• According to the 2024 report of the International Trade Union Confederation (ITUC), Hungary was included in the second-worst category in terms of the enforcement of workers’ rights, where violations are classified as systemic. portfolio.hu

In addition, chambers have been established by law in many sectors. Membership in some chambers is compulsory, i.e. the given economic activity may not be pursued without membership in the chamber, such as the Hungarian Chamber of Architects (Magyar Építész Kamara), the Hungarian Bar Association (Magyar Ügyvédi Kamara) and the Hungarian Medical Chamber (Magyar Orvosi Kamara). Representative organisations can enforce their interests through the National Economic and Social Council (Nemzeti Gazdasági és Társadalmi Tanács). Since members of the Council include representative organisations and federations, they have extensive rights when it comes to consultations and issuing opinions in dealings with the Parliament and the Government.

Many Hungarian trade unions are members of the European Trade Union Conference (ETUC).

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Employees and representative organisations may initiate labour disputes to assert claims deriving from their employment contract in the case of employees and to assert claims deriving from the Labour Code, a collective bargaining agreement or works agreement in the case of representative organisations. Labour disputes are handled by a special court called the Labour Tribunal. The term of limitation is three years in the case of labour rights claims, but for some legal declarations made by the employer (e.g. unilateral modifications of the labour contract) the deadline for filing claims is 30 days. The labour dispute may be preceded by a reconciliation procedure designed to reach an agreement if the parties have agreed on this or if it is included in the collective bargaining agreement.  

Before taking legal action, government officials must refer their complaint to the Arbitration Committee of Government Officials for a decision, after which they have 30 days to take the matter to court. Range of cases affected: termination of the legal relationship of government service, written notice regarding the termination of conflict of interests, qualification and performance evaluation findings, resolutions made on disciplinary or compensation issues as well as on paying damages, and unilateral modification of appointment.

Employees have the right to strike in order to enforce their economic and social interests under the Fundamental Law and the relevant 1989 Act, unless the strike is unlawful (e.g. for a purpose which conflicts with the Fundamental Law). Participation in a strike is voluntary; no-one may be forced to participate or to refrain from participating. A call to strike is permissible if the collective labour dispute conciliatory procedure fails to produce results within seven days, or if no conciliatory procedure is entered into for reasons not attributable to the party calling the strike.

When exercising the right to strike, employers and employees are subject to a cooperation obligation under the law.

Strikes may not be held at judicial bodies, in the Hungarian armed forces, in the police force and at law enforcement agencies, at civilian national security services and at the National Tax and Customs Authority in the case of permanent staff. The right to strike may be exercised at state administration bodies under special rules as set out in an agreement between the government and the relevant trade unions. Similarly, no strike may be held if such action would directly and seriously endanger human life, health, physical integrity or the environment, hinder response to natural disasters or undermine an existing collective agreement.

In the case of employers performing activities with a fundamental effect on the population, such as public road transport, telecommunications, supply of electricity, water and gas and other energy services, there is an important legal safeguard stating that strikes may be carried out only if they do not obstruct the provision of a sufficient level of service. This means that such strikes are lawful only if, in the absence of relevant legislation, the parties agree on the sufficient level of service or, in the absence of such agreement, on the basis of a court decision (within five working days). Such a strike may not be started in the absence of such an agreement or court decision. The initiation of a strike or participation in a lawful strike may not be deemed to be a violation of the employment contract and no detrimental action may be taken against the employee as a consequence. This means that although employees participating in a lawful strike are not entitled to remuneration or other benefits, they are entitled to the rights arising from the employment relationship. 

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Hungary has been a republic with a multi-party system since 1989. The most important bodies are the Parliament (or National Assembly), the President of the Republic and the Government. Parliamentary and local elections are held every four years. The next elections will be held in 2026. The 199 members of parliament are elected in a single round, either individually or from their party’s nationwide list. Only parties receiving at least 5% of the votes in the elections are represented in parliament. The President of the Republic calls on the candidate from the winning party to form a government. 

The following parties with their own grouping sit in the Hungarian Parliament: FIDESZ - Hungarian Civic Alliance, Christian Democratic People’s Party (governing party), and the Hungarian Socialist Party, Jobbik Movement for Hungary, Politics May Be Different, Democratic Coalition, Dialogue for Hungary, Momentum Movement, Mi Hazánk Movement. The legal system is hierarchical, i.e. lower-level legislation must comply with higher-level legislation. The Hungarian legal system follows continental traditions. Types of legal regulation: acts (can only be enacted by parliament); decrees (adopted by the government and its members); local authority decrees; other legal instruments of state governance. Acts passed by Parliament are subject to approval or return by the President of the Republic, who is then responsible for their promulgation. They enter into force only after this procedure.

In Hungary, the judiciary is made up of the Curia (Hungary’s supreme court), regional courts of appeal, regional courts and district courts. Judges are independent, reaching decisions on the basis of the law and in line with their deliberations. They may not be influenced or directed in making their judgements.

The Constitutional Court is the supreme guardian of the Fundamental Law (the Hungarian Constitution). The Constitutional Court carries out both general and case-specific constitutional reviews in accordance with the Fundamental Law and constitutional acts.

The police is responsible for public safety and the protection of public order, including criminal investigation, crime prevention, policing, criminal detention and border-guarding tasks.

Legal service departments (Igazságügyi Szolgálatok) provide legal advice free of charge to anyone requesting their services. In Hungary, there are various types of legal assistance available free of charge for people in need: a legal assistant from the contacts directory of legal assistants in non-contentious proceedings and legal representation in civil and criminal proceedings. In addition, people in need can be exempted from all fees and charges if they take legal disputes to court.

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According to data from the Hungarian Central Statistical Office (KSH) dated 25 February 2025, the gross average monthly earnings of full-time employees in December 2024 amounted to HUF 727 700. This represents an 11.0% increase compared to the same month of the previous year.

Net average earnings, taking allowances into account, amounted to HUF 500 500, representing a 10.9% increase compared to December 2023. Real wages, i.e., earnings adjusted for inflation, increased by 6.1% compared to the same period of the previous year. 

The regular gross average earnings (excluding premiums, bonuses, and one-month special benefits) are estimated to stand at HUF 625 400, representing a 10.6% increase compared to the same period of the previous year.

Median gross earnings amounted to HUF 560 900, while the median net earnings were HUF 389 800, meaning that half of the employees earned below these amounts and half earned above them.

The main types of central taxation are personal income tax, value added tax, excise duty and interest tax. 

There are three VAT rates in Hungary today: 27%, 18% and 5%, where the latter two can be considered as preferential rates. The 5% rate applies to books, certain foods, and products whose sale the State supports through a lower rate of VAT. Most products and services are subject to 27% VAT, whereas certain services (e.g. financial services) are tax-exempt, i.e. no VAT is payable on them. A high excise duty is levied on fuel, alcoholic drinks and tobacco products. Interest tax is payable on interest earned from savings in Hungary, investment yields, market profits from shares; the applicable tax is 15% of the interest income from investment. 

Local authorities levy local taxes. Local taxes are: building tax, land tax, communal tax, tourism tax, vehicle tax and local business tax. 

Personal income tax rate is 15% across all income brackets. The consolidated tax base is reduced by 

• family allowance for dependent children (tax base reduction of HUF 66 670 per month for one child, HUF 266 660 per month for two children, HUF 660 000 per month for three children, HUF 880 000 per month for four children, HUF 1 100 000 per month for five or more children)
• from 1 January 2023, the family allowance shall be granted for each dependant who is considered to be permanently ill or severely disabled according to the Family Support Act and shall be increased by HUF 66 670 per month of entitlement and per dependent beneficiary (HUF 10 000 in taxes);
• the consolidated tax base is reduced by tax credit for eligible first married couples.
• If at least one member of the couple is getting married for the first time, the spouses can jointly reduce their personal income tax by HUF 5 000 net per month for 24 months after the marriage.
• The maximum reduction for mothers under the age of 30 in 2023 is HUF 499 952 [1] per month, which means a tax saving of HUF 74 993.
• Benefit for young people under 25
• As of 1 January 2022, young people under 25 will benefit from a new tax base reduction: they will not have to pay personal income tax up to a certain amount on their income included in the consolidated tax base as defined by law.

The following two tables show the total labour cost and net salary for monthly gross salaries of HUF 150 000 and HUF 800,000 (based on one year’s work, with one, two or three dependent children).

The beneficiaries of the tax rules are families with three or more children. The gross salary of HUF 800 000 per month comes to HUF 572 000 net for employees with two children and to HUF 631 000 net for employees with three children. Tax relief for families may be claimed against both tax and social security contributions. Consequently, employees with a gross salary of HUF 150 000 receive a net salary of HUF 147 750 (nearly equal to the gross salary), if they have three children.

Effective from 2019, the range of fringe benefits were curtailed considerably, as were the benefits previously available as certain specific benefits or tax-free benefits. As from 1 January 2023, employers may provide fringe benefits subject to preferential applicable taxation terms only by paying into the relevant (catering, accommodation or leisure) wallets of the Széchenyi Recreation Card (SZÉP Card). In 2023, fringe benefits were subject to 15% personal income tax and 13% welfare contribution tax. This represents a total tax liability of 28%. Private sector employers may grant fringe benefits equal to the part of the annual figure of HUF 450 000 proportionate to the days spent in employment. For budgetary entities, the cap is equal to the proportionate part of an annual figure of HUF 200 000.

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The cost of living includes the following main expenditure items: 

• food,
• housing and household expenses (plus cost of electricity, water and natural gas),
• transport and telecommunications,
• education and culture,
• services (clothing, hairdressing, restaurants, dentist, entertainment, etc.).

According to data from the Hungarian Central Statistical Office (KSH), in 2024 the average monthly consumption expenditure per capita was HUF 157 000. This represents a 10.1% increase compared to the previous year; however, taking inflation into account, it reflects a 6.4% decrease in real terms. Spending on food increased by an average of 5.4% in 2024, though the quantity purchased decreased by 4.6%. The second highest outlay was on household maintenance (12.6%), but for those renting a home the figure was much higher (reaching 50-60%). Daily transport costs represent 11% of the total expenditure. The amount remaining for other needs was spent on clothing, culture, hotel accommodation and entertainment. 

The price of fuel was around HUF 590 to 609 per litre at the end of 2024. A family of four spends approximately HUF 45 000 to 60 000 on groceries per week, while a pair of good quality shoes is between HUF 20 000 and HUF 25 000. Cinema and museum tickets cost HUF 2 500 to 3 000 on average.

An average hairdressing service ranges between HUF 4 000 and HUF 8 000; however, prices in the capital and those the countryside may differ considerably. Dinner in a moderately priced restaurant costs from HUF 4 000 to 5 500 per person. 

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Housing options in Hungary differ considerably between Budapest and the rest of the country. While detached houses are common in villages and smaller towns, people tend to live in housing estates and apartment blocks in big cities.  

By the end of 2024, the portfolio of housing loans exceeded HUF 5 400 billion, representing an increase of approximately 6% compared to the previous year. Its ratio to GDP remained around 8.9%. Most of the loans continued to be used for the purchase of pre-owned homes. In the first half of 2024, nearly 53 000 housing loans were disbursed for this purpose, totalling approximately HUF 780 billion. While slightly fewer people took out housing loans, the average loan amount increased further due to rising real property prices – it now exceeds HUF 15 million.

In the first half of 2024, a total of 60 000 housing loans were approved, with a combined value of HUF 820 billion, representing a 2% increase compared to the same period in 2023. The distribution of loan placements reflects the continuing dominance of the purchases of pre-owned homes: more than half (approximately 55%) of the number and 60% of the value of the disbursed loans were allocated for this purpose.

At the beginning of 2025, Hungary’s housing stock approached 4.8 million units, representing an increase of approximately 5% compared to 2011. Around 185 000 new homes were built over the past 12 years. The average dwelling size has remained steady at around 97 square meters. The vast majority, approximately 96-97% of dwellings are privately owned; however, the proportion of owner-occupied homes is gradually declining.

Rental prices continue to vary significantly depending on the location, condition, and accessibility of the property. In Budapest, especially in the inner districts, the rent for well-maintained apartments larger than 100 square meters with one small and one bigger room or two standard size rooms often exceeds HUF 370 000 to 400 000, excluding utilities.

When renting a property, it is recommended to have a written contract, while when purchasing, a written contract is mandatory and must be certified either by a lawyer’s countersignature or before a notary public. The registration of ownership must be applied for at the competent land registry office. To verify the legal status of a property, it is advisable to obtain the property title before buying or renting, available online through the government portal or in person at government customer service centres.

The seller incurs a tax liability only if they have earnings from the sale of the property. If a seller who had purchased a property for HUF 15 million at some point in the past is able to sell it for only HUF 13 million years later, they will not incur any tax liability. The seller will need to pay personal income tax if they resell a property within five years of purchase (in the case of flats and detached houses) or within 15 years. PIT is payable only on the difference in prices. When buying a home, it is necessary to register with the local electricity, gas and water providers and waste collection company and provide them with the relevant particulars. You may also need to sign contracts with a telephone company and internet and cable television service providers.

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In Hungary, healthcare is provided by both public and private healthcare providers. A healthcare provider may only conduct healthcare activities in Hungary if it holds an operating licence issued by the government office (depending on competence). Any service provider meeting the personnel and material requirements is eligible for a licence. The healthcare provider is entitled to financing from the Health Insurance Fund for providing healthcare services if the National Healthcare Fund Manager (NEAK) has entered into a financing agreement with it to perform tasks. As a rule, healthcare provided from capacity covered by the financing agreement is granted to patients free of charge. However, a fee may be charged for care provided from surplus capacity in Hungary. 

Healthcare consists of services and monetary benefits. Benefits provided in kind include screening examinations, emergency care, ambulance services, general practitioner (GP) services (with free choice of GP), outpatient specialist care, inpatient care, and medical rehabilitation. All Hungarian nationals under the age of 18 or over 60 are entitled to free dental care, and regardless of age, everyone is entitled to dental inflammation centre examinations and the treatment of tooth and mouth diseases related to an underlying illness. Monetary benefits include maternity allowance, child care allowance, sick pay (childcare sick pay) and accident sick pay, depending on prior insurance coverage. 

People classified as insured are entitled to use the services of the healthcare system in Hungary. Everybody carrying out an economic activity is insured. Insured people are entitled to both healthcare services and monetary benefits.

Anybody receiving welfare benefit in some form (sick pay, family benefits, accident sick pay, accident allowance, old-age or survivors' benefit, etc.), socially disadvantaged people and minors are also entitled to healthcare services. As of 1 January 2020, anyone not falling into any of the insured categories can pay the mandatory HUF 7 710 per month (HUF 257 per day) to the Healthcare Fund and thereby become eligible for healthcare services, provided that they have been residing in Hungary for the previous 12 months. After 2020 the monthly rate of the health service contribution for the current year is the monthly rate of the health service contribution for the year before the current year, rounded to HUF 100, valorised by the change in the consumer price index published by the Hungarian Central Statistical Office for the month of July of the year before the current year compared with the same period of the previous year. The daily rate of the health service contribution is one thirtieth of the monthly rate, rounded up to HUF 10. The National Tax and Customs Administration publishes the contribution rates established in accordance with the above on its website by 31 October of the year preceding the year in question.

Entitlement to benefits can be verified by the ‘TAJ’ card (which contains the person’s social security number and other personal data). EU nationals staying in Hungary on a temporary basis, arriving from the territory of an EEA Member State, may present their European Health Insurance Card to request necessary medical care, essentially emergency services. Planned care is available as an EU patient at the patient's own expense.

Legislation lays down which medicines are prescription-only and which ones can be obtained over the counter. Healthcare providers with a contract with the NEAK issue prescriptions free of charge. In Hungary prescription medication may be purchased only with prescriptions complying with Hungarian law or prescriptions duly issued in another EU country. In 2024, there were 2 899 retail pharmacies operating in Hungary (along with 636 branch pharmacies), and online sales are also permitted. Medication funded by social security is reviewed annually. A number of basic, non-prescription drugs can also be purchased outside of pharmacies (e.g. at petrol stations and shopping centres).

Public health tax is payable on foodstuffs with high sugar, salt, alcohol or caffeine content when they are placed on the market. The tax collected is used to improve the health of the population.

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Public education institutions in Hungary include nursery schools, primary schools, grammar schools, vocational grammar schools and secondary vocational schools, basic level art educational institutions, boarding schools and dormitories. Public education establishments may be founded and maintained by the state, national minority self-governments, legal church entities and organisations engaged in religious activities, or other people and organisations. 

Participation in public education financed by the public institution maintenance centre is generally free of charge in Hungary, although in certain cases a limited fee may be charged (for music lessons, dormitory accommodation, etc.).

The state also supports the operation of non-state-run educational institutions.

Children can attend a crèche in Hungary up to the age of three, where they are looked after in small groups, with whole-day or half-day supervision.

Nursery school education begins when the child is three years old and lasts until 31 August of the year in which the child reaches the age of seven. Nursery school education is compulsory, from which exemption may be requested to a limited extent.

A child becomes subject to compulsory education in the year in which he or she reaches the age of six by 31 August. At the request of the parent, the child may attend kindergarten for an additional year of education, on the basis of a decision of the body granting the exemption. Parents may submit their request to the body granting the exemption by 15 January of the year in which school starts. If an expert is to be heard in the proceedings, only a committee of experts may be appointed. If the expert committee recommends that the child should continue to attend nursery school for another year before the deadline for the submission of the parental application, the parental application does not need to be submitted. If the child reaches the level of development required for school entry earlier, the entity authorising the exemption may, at the request of the parent, allow the child to start to fulfil his/her compulsory education before the age of six.   Compulsory education ends in the academic year in which students reach the age of 18.

Primary education in Hungary officially lasts for eight years. It is usually provided in primary schools with eight grades, but after completing the fourth or sixth school year, pupils may also transfer to a lower-secondary level of a general secondary school, where they continue their studies for eight or six more years, respectively.

Secondary education in Hungary starts in year 9 and is completed at the end of years 10, 12 or 13, depending on the type of school attended. The main types of secondary education institutions are: secondary vocational school, grammar vocational school and grammar school. Upon completing studies at the latter two, students take a secondary school leaving examination. 

Higher education institutions in Hungary are state and non-state universities and colleges recognised by the State. Universities provide training for four, five or six years, while colleges provide courses that last three or four years. In the school-leaving examination, candidates with a pass mark will be admitted to a higher education institution. An entrance examination will be determined depending on the institution. In the 2024-2025 academic year in Hungary, 1 900 000 people are participating in training offered at different levels in public and higher education. 324 000 children attend nursery schools, 714 000 children attend primary schools, and within the secondary education, 546 000 children receive daytime education in grammar schools. A further 328 000 young people study at higher education institutions. 714 000 children receive primary school education. 

In the 2024-2025 academic year, the total number of teachers employed in public education institutions within the framework of a main employment relationship is 147 871. The number of those enrolled in higher education institutions is 328 000. 

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There are numerous entertainment and recreation opportunities in Hungary. In addition to the multiplex movie theatres located mostly in major shopping centres, there is a network of art cinemas where art-house films are screened. There are theatres in all cities, although most are in Budapest. The Budapest Opera House, the Erkel Theatre, the Academy of Music and the Budapest Palace of Arts offer a variety of programmes for classical music lovers; their artists are renowned all over the world. Four regional units of the National Philharmonic Orchestra organise classical music concerts. Furthermore, there are over 850 museums (e.g. the Csontváry Museum in Pécs) and libraries across the country. As regards entrance fees, the same discounts are available to both EU and Hungarian nationals.  

Young people throughout Europe are familiar with the summer festival Sziget as well as the Szeged Open-Air Festival; other festivals, such as VOLT, EFOTT, Balaton Sound and Fishing on Orfű, also attract huge numbers of visitors. Also worthy of mention are the many evening music venues to be found in the cities. Over the last few years, Budapest has become one of the favourite leisure destinations for Europe’s young people.

City Park (Városliget) in Budapest offers great entertainment for the whole family. Children can enjoy the Budapest Zoo and Botanical Garden as well as the Capital Circus, while adults can visit exhibitions at the Museum of Fine Arts and the Hall of Art. Outside Budapest there is also much to offer, with excellent exhibitions and zoological gardens (Veszprém, Debrecen, Nyíregyháza) and outstanding natural attractions (Hortobágy, Lake Tisza Ecocentre, Kis-Balaton).

Hungary has a wealth of mineral water spas, which strongly influence leisure activities, as they have given rise to a number of world class four- and five-star wellness and spa hotels in all parts of the country. In recent years, a number of thematic night-time programmes have grown to reach nationwide coverage; examples include the nights of theatres, museums, professions, spas and art-house cinemas, all of which offer rich entertainment for free. In addition, countless excellent gastronomical events take place throughout the country.

All cities offer sporting opportunities: a variety of sports can be pursued at various sports facilities and fields, and special, extreme sports are offered in larger cities. 

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In Hungary, the vast majority of babies are born in hospitals; while home births are permitted under strict rules, they are rare. Births must be notified to the competent civil registrar on the first working day following the birth at the latest (the national authority responsible for the registration of births is the Budapest Government Office). Upon notification, the civil registrar immediately enters the birth in the register and automatically issues the birth certificate to the child’s legal guardian. Birth certificates are required in various official procedures throughout one’s life. 

Marriages can be held before the civil registrar 30 days after notification of the intention to marry. Marriage ceremonies are held in public, in the presence of two witnesses, where the man and woman, appearing together, jointly declare their intention to marry before the civil registrar, and the registrar then records the marriage in the register of marriages. A marriage certificate is issued from the register, which serves as evidence of the marriage. Marriages between direct relatives and siblings, and marriages with the direct descendant of a brother or sister, or between an adoptive parent and an adopted child during the period of adoption, are invalid. Under Hungarian law, marriage is permitted only between a man and a woman, whereas same-sex couples can have a registered civil partnership, which gives them the same status as married couples, with the exception of the joint adoption of children and having a married surname. Hungarian law also gives certain rights to unmarried heterosexual couples living in the same household. For example, the partners are treated as relatives and jointly own property in proportion to their contribution to the household, etc.

In addition to marriages made under civil law, it is common in Hungary to hold a church wedding. Unlike the civil wedding however, this does not entail legal consequences under family and property law and is not recognised by the state.

Either spouse may file for divorce in court if their marital relationship has completely and irretrievably broken down. This circumstance does not need to be examined, and the court shall dissolve the marriage if both spouses jointly request it based on a free and mutual agreement. 

Deaths must be registered on the first working day after the death; the civil registrar immediately enters the death in the register on the basis of the relevant report. After registering the death, the registrar issues a death certificate to the person or entity responsible for organising the funeral.

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