Employer of Record in Hungary: what one employee really costs

Questions people ask before booking a demo

How much does an employer of record cost in Hungary?

The only charge on the payslip is the social contribution tax at 13% of gross salary, with no ceiling and no second payroll levy. On a US$40,000 salary that is roughly US$430 a month on top of salary. Published EOR fees then run from about $199 to $699 per employee per month, so the all-in cost lands near $4,000 to $4,500 a month depending on the provider.

Is 13% really the whole employer cost in Hungary?

For the payslip, yes. Hungary abolished its separate vocational training contribution on 1 January 2022, the same day the social contribution tax fell from 15.5% to 13%, which is why the tax authority now publishes a single employer figure. Costs sit outside it, though: a municipal business tax of up to 2% plus a 0.3% innovation contribution that small and micro enterprises do not owe, both charged on the provider's Hungarian turnover rather than on your employee, and the pre-employment medical examination providers bill. A rehabilitation contribution also applies to larger employers in Hungary, assessed on their own headcount rather than on your payslip. Ask your provider whether either reaches your invoice.

Is Hungary cheap to hire in compared with the rest of Europe?

On employer charges Hungary is inexpensive by European standards: 13.0% against Belgium's 34.4%, Sweden's 32.3%, Spain's 32.2% and France's 48.2%. Several countries priced here are lower still, among them Romania at 2.3%, Denmark at 3.3%, Switzerland at 10.9% and Ireland at 12.9%. What is unusual about Hungary is not the level but the shape: because the 13% is uncapped and there is nothing else on the payslip, the figure holds at every salary instead of fading at a ceiling, which is not true of Switzerland or Ireland. Run your own figure through the table above to see the gap in dollars.

How much paid leave does a Hungarian employee get?

Twenty working days as the base, plus eleven public holidays. The base then grows with age rather than with service: one extra day from 25, two from 28, three from 31, four from 33, five from 35 and upward from there. A hire in their late thirties therefore starts with noticeably more than twenty days, which is worth knowing before you plan a team's capacity.

What notice and probation apply in Hungary?

Probation can be agreed for at most three months from the start of employment, and if a shorter period was agreed it may be extended once, never beyond three months in total. Notice is thirty days as a base. On the employer's side it lengthens with service: five days more after three years, fifteen after five, twenty after eight and twenty-five after ten.