HUNGARY

Overview of HUNGARY

Hungary lies in the middle of central Europe and is one of the oldest countries in Europe. Its capital is Budapest and Hungary has a population of 9.77 million. The official language is Hungarian and it has 44 letters in its alphabet. Communism ended in Hungary in 1989 and it became a parliamentary republic. Hungary joined the EU in 2004 and became part of the Schengen area in 2007. Hungary is known for its many thermal springs and its consequent thermal spring culture. The literacy of the Hungarian population lies at 99% and a large part of the population has receives a secondary education.

Hungary welcomes international business and considers personal relationships in business crucial. Face-to-face meetings are absolutely necessary in business. Hungarians tend to be formal when conducting business and appreciate open dialogue. Due to these, they may be perceived as abrupt or rude by foreigners. First meetings are usually reserved but once the ice is broken, Hungarians tend to be passionate and spirited.

Currency of HUNGARY

• Hungarian Forint

Health Insurance and the Social Security system of HUNGARY

Hungary has a universal healthcare system for all of its citizens. It is funded by citzen taxes, the National Health Insurance (HIF) and Országos Egészségbiztosítási Pénztár (OEP). All employed persons pay local and federal income taxes which are automatically deducted from their salary to support the system. Employers are also required to pay their percentage to the HIF. Alongside the public system, there exists a private healthcare system. Some companies offer their employees access to private insurance as a benefit.

Hospital services are free of charge when given a referral from a regular doctor. Most public healthcare facilities require cash payments after treatment.

Employer cost of HUNGARY

The cost for an employer to hire someone in Hungary is a plus of 17.00% to the gross salary.

Salary and bonuses of HUNGARY

Regular employees are paid monthly.

Commissions, incentives, and bonuses are variable and will be agreed upon directly with the employer.

Public Holidays in HUNGARY

• January 1^st – New Year’s Day
• March 15^th – National Day
• moveable – Good Friday
• moveable – Easter Monday
• May 1^st – Labour Day
• moveable – Pentecost Monday
• August 20^th – State foundation day
• October 23^rd – National Day
• November 1^st – All Saints Day
• December 25^th – Christmas Day
• December 26^th – Boxing Day

Working Hours in HUNGARY

Office hours are from 8.00am to 5:00pm, Monday to Friday.

A regular work week is 40 hours at 8 hours a day.

Overtime worked is paid at a rate of 150% during the week. If overtime is worked on the weekend or a public holiday, it is paid at a rate of 200%.

Vacation in HUNGARY

Hungary has a minimum of 20 vacation day per year. This changes with the age one reaches. Once an employee hits 25, the vacation days are raised by 1 day every 3 years and every 2 years when the employee is in his thirties and forties. Once an employee reaches the age of 45, he receives 30 days of vacation.

Sick Leave in HUNGARY

When an employee gets sick in Hungary, he needs to get a medical certificate to prove it. Employees are entitled to 15 days of paid sick leave per year. The employer must pay 70% of the employees wage during this time. If the employee is sick for longer than 15 days, employees are entitled to receive sickness benefit from the state social security system. This benefit is 60% of the employee’s average income and is paid for 180 days.

Termination/Severance in HUNGARY

When dismissing an employee in Hungary one has to have just cause that is either related to the skills or conduct of the employee of due to the operation of the employer.

A notice period has to be observed. Up to the first 3 years of employment, the notice period is 30 days and no severance pay needs to be paid. If the length of employment is between 3 and 5 years, the notice period is 35 days and the severance pay is 1 month wage. If the length of employment is between 5 and 8 years, the notice period is 45 days and the severance pay is 2 months wages.

Employees who were dismissed by ordinary notice are exempt from their work for at least half of the notice period in order to find a new job.