Employer of Record in Hungary

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
Talk to us about Hungary

Why companies build teams in Hungary

Lundi supports compliant employment in Hungary — Budapest for SSC, finance, and tech. Strong central European hub with EU compliance and meaningful tech ecosystem. For larger SSC teams Poland typically wins on scale; for engineering Romania often wins on cost.

Languages

Hungarian

Payroll Frequency

Monthly

Currency

HUF

Capital City

Budapest

Employer Tax Rate

19.00%

Hungary has a mature SSC and tech sector concentrated in Budapest — Morgan Stanley, Citibank, BlackRock, plus a substantial tech and gaming ecosystem (NNG, LogMeIn heritage). Hungarian forint (HUF) is the local currency. Employer social contributions run ~13–16% above gross (one of CEE's lower rates). Strong fit for SSC, finance operations, and mid-size engineering teams. For larger-scale SSC operations Lundi typically recommends Poland (deeper SSC ecosystem). For cost-driven engineering Romania often wins. For companies building teams of 10+, not individual hires.

Cost of Employment in Hungary

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Hungary

Employer Tax Costs in Hungary

An employer can expect to contribute 17% in social contributions on top of an employee’s salary. This includes 15.5% social contribution tax and 1.5% that goes to the vocational training fund.

Employee Income Taxes in Hungary

Employees in Hungary all pay a flat rate income tax of 15%. Employees also pay 18.5% in social security contributions.

Employee Probation in Hungary

A probation period is optional in Hungary, but it can be included in employment contracts at the agreement of the employer and the employee. It cannot exceed three months.

Employee Overtime in Hungary

Employees in Hungary work eight hours per day and 40 hours per week.Overtime hours during the week are paid at a rate of 150%. Overtime hours on weekends and bank holidays are paid at a rate of 200%.

Employee Notice in Hungary

Termination of a permanent contract with cause requires a notice period of at least 30 days. This can be extended in proportion to the length of the service, if the termination is carried out by the employer.

Employers terminating an employee can offer a “garden leave” for half of the notice period. During this period, the employee will be exempt from work duties, but is still entitled to their absentee pay.

Termination in Hungary

In Hungary, both the employee and employer must provide notice of termination in writing that contains a justified reason for dismissal.Severance pay varies depending on the length of employment.

How Lundi works in Hungary

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.