Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
HUF Ft (Hungarian Forint)
Employer contributions
13% social contribution tax + 1.5% vocational training
Minimum wage
266,800 HUF (guaranteed minimum: 348,800 HUF for qualified)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Budapest
Timezone
CET (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~577,500 HUF total
/month
For a gross salary of
500,000 HUF gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
13% social contribution tax + 1.5% vocational training
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll / bevallás by 12th / NAV / annual SZJA by May 20
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~577,500 HUF total
Example gross salary
500,000 HUF gross/month
~322,500 HUF net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~77,500 HUF employer tax
Employer contributions on that salary
Employer contributions
13% social contribution tax + 1.5% vocational training
Employee contributions
18.5% employee SS (health 3% + pension 10% + labor market 1.5%)
Total cost above gross
~15.5% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~470,000 HUF
Per month
Budapest
550,000 - 900,000 HUF
~30%
Debrecen
400,000 - 600,000 HUF
~10%
Monthly gross. National average salary per year:
~5,640,000 HUF
Minimum wage
266,800 HUF (guaranteed minimum: 348,800 HUF for qualified)
Paid:
Monthly
Extra pay
Annual Bonus
Discretionary, 13th month uncommon by law
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
15% flat income tax (SZJA)
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 12th (bevallás)
Social security payments
May 20
Income tax
By February 15 (M30 form)
Employee tax certificate
Jövedelemigazolás
May 20
Annual return
Személyi jövedelemadó bevallás (SZJA)
Late payment penalties
Late: 5-7% daily penalty rate; late SZJA: 10% surcharge + interest
Who collects what
NAV
Tax and customs authority
NSZFH / OEP
Social security and health
Munkavédelem / Munkaügy Felügyelet
Labor safety and inspection
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Szabadság
20 working days
Public holidays
13 public holidays
Sick leave
Táppénz
Employer: first 15 days at 70%; OEP: from day 16
Maternity leave
24 weeks (168 days)
70% TGYÁS (OEP)
The contracts you can use, and what ending an employment relationship costs.
Permanent
Határozatlan idejű munkaszerződés
Fixed term
Határozott idejű munkaszerződés
Independent contractor
Vállalkozói szerződés / Megbízási szerződés
Collective agreements
Kollektív szerződés
Ending employment
Végkielégítés
How it is calculated
1-6 months based on seniority
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Megbízási Szerződés Misuse
Risk Level: HIGH
Hungary's Labor Inspectorate increasingly challenges megbízási (commission/mandate) contracts used for ongoing regular work. The key indicator is whether the contractor is personally obligated to work and subordinate to the employer's instructions. Reclassification leads to full SS back-payment.
Cafeteria Benefit Non-Compliance
Risk Level: MEDIUM
Hungarian employers may offer tax-advantaged Széchenyi Recreation Card (SZÉP kártya) benefits up to 450,000 HUF/year. Exceeding annual limits or using incorrect benefit subcategories triggers full income tax and SS on the excess at personal income rates.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.