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How to Hire Using an Employer of Record in Hungary (2025 Edition)

Employer of record

Ellie Merryweather

Author

Ellie Merryweather

Last Update

June 27, 2025

Table of Contents

What is a Hungarian Employer of Record?

Top reasons to use an Employer of Record when hiring in Hungary

How to hire in Hungary: Step-by-step guide

Employment compliance tasks an Employer of Record manages in Hungary

How much does it cost to hire through an EOR in Hungary?

Which Hungary EOR Should You Choose?

Is Deel EOR a strong choice for hiring in Hungary?

Hire employees in Hungary confidently with Deel EOR

Key takeaways
  1. Setting up a Hungarian entity to hire local talent can take weeks and could cost up to HUF 18,400,000 in legal, tax, and payroll setup.
  2. A Hungarian Employer of Record covers social security, taxes, contracts, and data protection under Hungarian labor laws, ensuring full compliance without the headache.
  3. Deel EOR owns its entity in Hungary for full control, supports hiring in 150+ countries, delivers transparent pricing, real-time compliance monitoring, and has top G2 ratings.

Hiring in Hungary is an attractive play for global companies. Budapest is a thriving tech hub with fast-growing engineering talent, competitive salaries, and EU-level IP protections. Yet setting up a local entity brings red tape: you must register for social contribution tax, file monthly payroll reports in Hungarian, and keep pace with frequent labor-code amendments.

An Employer of Record (EOR) shifts those burdens. The EOR legally employs your team, while you keep day-to-day control over work and performance. Market-leading platforms like Deel let you generate a compliant Hungarian employment contract in minutes, automate state pension deductions, and pay team members in HUF or EUR—all through one dashboard.

What is a Hungarian Employer of Record?

A Hungarian Employer of Record (EOR) is a licensed local entity that legally employs workers on behalf of a foreign company. This arrangement allows you to hire employees in Hungary without setting up a local subsidiary.

Legally, the EOR:

  • Signs the Hungarian labor contract
  • Registers the employee with the National Tax and Customs Administration (NAV) and Social Security Fund
  • Withholds and remits personal income tax and employee social security contributions each month

Operationally, you:

  • Select the talent, set compensation, and direct daily work
  • Retain all IP and commercial rights over outputs

Liability for payroll errors, late filings, or wrongful termination sits with the EOR, not you. Deel owns its Hungarian entity, ensuring no subcontracting risk and direct accountability. Its Compliance Hub flags rule changes, such as updates to tax regulations or social security contributions, before they impact your business.

Top reasons to use an Employer of Record when hiring in Hungary

Hungary’s labor code is investor-friendly, yet mistakes are costly. Using an EOR neutralizes the biggest friction points and ensures compliance with local employment regulations:

  • One-click compliance with employer costs: Deel auto-calculates the social contribution tax plus vocational training contribution and files on time
  • GDPR peace of mind: Keep employee data within the EEA, satisfying strict Hungarian Data Protection Authority audits
  • Misclassification insurance: The EOR mitigates misclassification risk by allowing you to hire employees in Hungary, with all associated regulatory needs taken care of
  • Speed to first hire: Setting up a local Kft. (limited company) can take 6–12 weeks; with Deel EOR, onboarding is live in less than 5 days
  • Local expertise baked in: Hungarian-language payslips, optional SZÉP card benefits, and real-time updates on Labour Code amendments—no internal HR learning curve needed
Deel Employer of Record
Hire employees globally with the #1 Employer of Record
Deel provides safe and secure EOR services in 100+ countries. We’ll quickly hire and onboard employees on your behalf—with payroll, tax, and compliance solutions built into the same, all-in-one platform.

How to hire in Hungary: Step-by-step guide

Use this eight-step checklist to go from intent to first payslip without missteps when hiring in Hungary.

1. Choose an EOR with a wholly-owned Hungary entity

Start by confirming that the provider directly owns its Hungarian subsidiary. Direct ownership guarantees the EOR—not a third-party partner—holds employer of record status, reducing contractual chains and response times.

Tip: Ask the provider for its company registration certificate (cégkivonat) to verify local presence.

2. Book a demo and verify social proof

Request a demo to see payroll runs, contract templates, and compliance dashboards in action. Check case studies and client testimonials for EOR services in Germany. Scan reviews on G2 and Trustpilot, where Deel EOR holds a 4.8/5 average.

Tip: Request a customer reference in your industry to confirm German payroll accuracy and compliance.

3. Request a transparent EOR quote

Ask for a line-item quote showing:

  • Employee gross salary
  • Social contribution tax
  • Vocational training contribution
  • Deel’s flat monthly management fee

Ensure the quote explains any extra services that may incur additional costs (e.g., visa sponsorship).

Tip: Compare costs before you expand—read our article EOR vs. Entity Costs: What’s More Affordable?

4. Submit a 12–24-month hiring plan

Share projected headcount and salary bands. This helps the EOR pre-register social tax caps, reserve payroll slots, and forecast benefit renewals like private health insurance.
Tip: Update your plan quarterly to reflect hiring or regulatory changes.

5. Create the employment contract in the platform

Hungarian law requires a written contract on or before day one, detailing base salary in HUF, job title, place of work, and working hours. Deel’s template embeds mandatory clauses, including trial period and notice period requirements, and lets you add bonus schemes.

Tip: Customize probation durations within legal limits for flexibility.

6. Confirm the candidate's right to work

EU citizens need no extra paperwork; non-EU nationals require a combined residence and work permit. Deel Immigration can file the application and schedule consular appointments.

Tip: Store digital copies of work authorizations in the platform for audit readiness.

7. Run the onboarding workflow

With Deel EOR, every onboarding is adapted to local labor laws, supported by a dedicated onboarding manager. Within the platform, new hires can seamlessly verify identities and work-permit status, complete compliance documents and payroll information, and review and sign employment agreements.

Tip: Automate reminders for benefit opt-in deadlines to maximize employee satisfaction.

8. Maintain ongoing compliance

Leverage real-time alerts for changes in German labor laws, payroll tax updates, and social security rates. Deel Compliance Hub tracks filings and flags discrepancies before they become issues.

Tip: Schedule monthly reviews with your EOR account manager to stay ahead of regulatory shifts.

Continuous Compliance™
Unlock Continuous Compliance™ with Deel
Keep your finger on the pulse of global compliance issues like never before. Our Compliance Hub provides access to the latest regulatory updates and risk warnings, offering guidance and actionable alerts to enhance compliance—all in a single place.

Employment compliance tasks an Employer of Record manages in Hungary

Your EOR provider will shoulder core obligations when you hire employees in Hungary, including compliance with annual leave, statutory benefits, probation periods, and public holidays.

Category Key Requirements (2025)
Statutory Employer Costs Employers pay 13% of the employees' monthly salary, plus a mandatory HUF 15,700 to cover rehabilitation and healthcare services.
Employment Contracts & Probation Rules Written contract mandatory by first workday; must state base salary, job duties, place of work, and start date. The probation period may not exceed 3 months. Notice period during probation: immediate; post-probation: minimum 30 days
Pay and Working Hours Standard workweek: 40 hours; daily max: 8 hours. The National Economic and Social Council (NGTT) differentiates between Mandatory Basic Minimum Wage (HUF 290,800 per month) for all jobs regardless of qualifications, and Guaranteed Minimum Wage (HUF 348,800 per month) for jobs that require at least secondary education.
Payroll & PAYE Compliance Employers withhold 15% personal income tax and 18.5% employee social security contributions, file monthly 08-as returns via NAV e-portal by the 12th, issue payslip each pay period, and store payroll data for 7 years. GDPR applies to all payroll data transfers
Vacation and Public Holiday Allowances Base annual leave: 20 days, with increases applicable based on age and family situation. Hungary observes 11 paid public holidays.
Income Taxes Flat 15% personal income tax on taxable income. Employers remit withheld PIT monthly; annual tax returns are optional for employees unless claiming deductions
Expenses, Allowances, and Bonuses It’s common for employers to offer a SZÉP card, a fringe benefit, tax-favored up to HUF 650,000/year. Reimbursable business expenses must be documented. Bonuses are taxed as regular income.
Statutory Benefits & Pension Requirements Auto-enrolment into state pension; employer funds 13%.
Maternity and Paternity Leave There are 3 levels of maternity leave, depending on the family situation and health of the mother. Paternity leave is 10 working days, funded by the employer.
Sick Leave and Bereavement Leave Sick pay: Unlimited, with the employer covering the first 15 calendar days at 70% average pay, after which the National Treasury pays at 60% average pay. Bereavement: 2 paid days for close relatives and spouses.
Terminations/Dismissals, Redundancy, Severance, and Resignations Objective grounds needed; notice period 30–90 days depending on tenure. Severance applies after 3 years: starts at 1 month’s pay, max 6 months.
Health & Safety Governed by the Department of Occupational Health and Safety. Employers must perform risk assessments, provide PPE, and report accidents. Remote workers are entitled to a safe workspace audit.
Misclassification Risk Over 27% of worker misclassification cases in 2024 resulted in fines and penalties for the employer.
Data & IP Protection GDPR fully applies; Hungarian DPA requires DPIA for HR-tech systems storing health data. IP created in employment defaults to employer; explicit assignment recommended.
Discover how Responsible Cyber manages its international team with Deel

Responsible Cyber carefully reviewed +10 platforms in search of a solution that aligned perfectly with its values and requirements.

Deel was chosen for its high level of international security standards and its customer service. Beyond the platform's robust technical merits, it was Deel's exemplary and personalized account management that further cemented the decision.

"I particularly like that Deel is our HR one-stop shop for direct and EOR employees without differentiation. We also use Deel across the business, which means we do not need to use or maintain two different platforms or services while integrating our international employees.

Deel offers valuable features like vacation and leave submission with a consistent feel and experience for all.”

-- Dr. Magda Chelly, Co-Founder & Managing Director at Responsible Cyber

How much does it cost to hire through an EOR in Hungary?

With Deel, costs stay predictable—no hidden charges, minimum wage gaps, or surprise currency mark-ups.

Factor Your Own Hungary Entity Deel EOR
One-off setup costs (company registration, legal drafting, bank, accountant) HUF 18,385,411 HUF 0
Ongoing annual costs (accounting, payroll software, statutory audits) HUF 11,376,086 Included
EOR annual management fee N/A HUF 2,451,252 / Worker
Liability for fines & audits You bear 100% Shifts to Deel
Time to first hire 2 months 2 business days
Estimated total annual cost* HUF 29,761,497 HUF 2,451,252

Which Hungary EOR Should You Choose?

When evaluating Employer of Record (EOR) providers in Hungary, weigh these four criteria:

  1. Entity ownership: Prioritize EORs, like Deel, that own the Hungarian entity to avoid subcontractor risk
  2. Compliance expertise: Look for an in-house legal team monitoring Labour Code updates and GDPR rulings
  3. Platform breadth: Beyond hiring, Deel offers global payroll, mobility visas, equity administration, and AI-driven compensation insights
  4. Global coverage: If Hungary is just one stop on your expansion map, choose an EOR with 150+ country reach to keep everything on one contract

Is Deel EOR a strong choice for hiring in Hungary?

Yes—Deel is a top-rated Employer of Record (EOR) for companies hiring in Hungary and managing full-time teams. Deel owns its local entity, making compliance smooth and reducing risk, all while eliminating the pain and cost of setting up your own company. With a G2 leader rating, transparent pricing, and proven experience in 150+ countries, Deel stands out for reliability and speed.

  • G2 leader: Highest user satisfaction and largest market presence among EOR providers.
  • Wholly-owned Hungary entity: No subcontractors—Deel is the legal employer, ensuring direct accountability.
  • Fast onboarding: Hire employees in Hungary in under 5 days—no months-long entity setup required.
  • Full statutory compliance: Deel handles the 13% social contribution tax, 1.5% vocational training contribution, and all filings.
  • GDPR & IP protection: Strong data safeguards and default employer IP ownership.
  • Hungarian-language contracts & payslips: Localized, compliant documents for every employee.
  • Flat, transparent pricing: No hidden fees or currency mark-ups; see the full cost up-front.
  • 24/7 support & compliance alerts: Deel monitors Hungary’s labor laws, including changes to minimum wage and tax regulations, and keeps you updated.
  • Global reach: Scale easily—Deel supports hiring in 150+ countries from one dashboard.
  • Integrated payroll & benefits: Automated Hungarian payroll, pension auto-enrolment, annual leave, and local perks like SZÉP card management.

With Deel, you skip red tape and hidden costs, so you can focus on growing your team in Hungary.

Thanks to Deel, we get to hire local talent in any country where we want to expand long before we set up the entity there. Effectively, this gives us a head start.

—Luka Besling,

HR Manager at Revolut

See how Revolut streamlined employee relocation with Deel EOR and Deel Immigration

Hire employees in Hungary confidently with Deel EOR

Ready to bring on Hungarian talent without the headaches of setting up a local entity? Deel lets you hire and pay full-time employees or contractors in Hungary in just days, not months. Our platform streamlines compliance with Hungary’s labor code, payroll, social security contributions, and tax regulations. Plus, you always see what you’ll pay, thanks to our flat, transparent pricing.

Book a Deel demo to see how quickly you can onboard, pay, and manage your Hungarian team. Discover why global leaders choose Deel for compliant, cost-effective hiring—get started and leave entity setup, tax filings, and legal risk to us.

Platform Tour
Explore the Deel platform
See how easy it is to add and configure a brand-new employee contract through the Employer of Record service. Click to launch a platform demo.

FAQs

Most clients onboard employees in Hungary within 5 business days through Deel’s EOR platform.

No—Deel can pay out salaries in HUF or EUR to local or international bank accounts.

Employees receive a locally compliant, Hungarian-language contract that meets all legal requirements, including probation period details and working hours.

Yes—Deel calculates, withholds, and remits all required taxes (PIT, social security contributions, and employer contributions) to the authorities.

Payroll and statutory filings are completed monthly, with all remittances due by the 12th of each month.

Yes—Deel auto-enrolls employees into Hungary’s state pension system and manages statutory benefits, including annual leave and public holidays.

The probation period can be up to 3 months, as stated in the employment contract; termination during probation requires no notice, but after probation the minimum notice period is 30 days.

No—Hungary does not require 13th or 14th-month salary by law.

By default, the employer owns all IP created during the employment relationship unless agreed otherwise in the contract.

Deel ensures strict GDPR compliance and protects all employee data according to Hungarian and EU law.

Ellie Merryweather

About the author

Ellie Merryweather is a content marketing manager with a decade of experience in tech, leadership, startups, and the creative industries. A long-time remote worker, she's passionate about WFH productivity hacks and fostering company culture across globally distributed teams.

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