Easily manage employment in Hungary

Payroll services in Hungary

Hungary has a growing economy with key industries in automotive, manufacturing, and technology. With specific labor laws and tax regulations, employers in Hungary must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Hungary

Employers in Hungary must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Hungary’s minimum wage is HUF 266,800 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Hungary is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated based on labor regulations.

Taxation and social security contributions

• Personal income tax: Hungary has a flat income tax rate of 15%.
• Employer contributions:
• Social security: 13% of the gross salary.
• Employee contributions:
• Social security: 18.5% of the gross salary.
• Corporate tax: The corporate income tax rate in Hungary is 9%.
• Tax reporting: Employers must file payroll taxes and contributions with the Hungarian tax authorities regularly.

Payroll compliance in Hungary

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to Hungary’s labor laws and tax regulations to avoid penalties.

Run payroll in Hungary with Remote

Managing payroll in Hungary requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.