Employment

What happens to foreign employees when a Hungarian business closes?

Nothing lasts forever, not even business. When the life cycle of a business comes to an end, the labor contracts of employees are automatically terminated, and employees will be eligible for compensation same as if the employer ended the contracts. But what happens to foreign employees in Hungary? Can they stay or do they have to leave? What options do they have? Read on to find out.

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Maternity leave for your Hungarian employees

Maternity leave is a form of unpaid leave in Hungary during which mothers can apply for allowances from the state. New mothers can spend at least 6 weeks with their babies, during which you cannot terminate their employment relationship. This is true even for third-country national employees, and it is not supposed to affect existing work permits either.

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Tax exemption for mothers in Hungary

In an attempt to better support families in Hungary, various tax benefits have been introduced and then extended over recent years. One of them is the tax exemption for mothers, which allows women to avoid paying personal income tax based on their age and the number of their children. Eligibility conditions have been being broadened, and the trend is expected to continue in coming years.

The post Tax exemption for mothers in Hungary appeared first on Helpers Finance.

Employing EU nationals at your Hungarian company

EU nationals enjoy the freedom of movement within the European Union. This means that they can work in Hungary without a work permit. However, there are still some administrative tasks to perform before an EU national can start working at your Hungarian company.

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Pink social security booklet abolished from January 2026

The pink social security booklet that is used to register social security payments will become obsolete in January 2026. It has been made redundant thanks to the digitalization of payroll related administration in Hungary, and now employers must update their workflows in preparation for its phase-out.

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Hiring executives at your Hungarian company – what you need to know

As your Hungarian company grows, you may want to add more executives – either by promoting current employees or hiring new ones. Executive roles come with special rules, fewer protections, and in some cases, changes to work permits, so make sure to consult a specialist like Helpers before you proceed with hiring executives.

The post Hiring executives at your Hungarian company – what you need to know appeared first on Company Formation.

Employing domestic workers in Hungary

If you need cleaning and similar services for your business, you will need to contract a provider. However, if you need this type of work done at your home, you can engage domestic workers and save on taxes. Certain types of domestic work are not taxed in Hungary, although the work itself must be reported to the Tax Authority.

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Having children while on a work permit in Hungary

Currently there is a wide variety of work permits available depending on the job and the background of the applicants. The Hungarian work permit is in fact a residence permit given for the purpose of work, but having children in Hungary is not supposed to affect the residency status while foreign workers will also be eligible for most Hungarian child benefits.

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Sick leave in Hungary

What happens if your Hungarian employees get sick? They should go on sick leave. But how does that work, what rights do you and your employees have, and most importantly, who pays for that? Read on to learn about the most important aspects of sick leave in Hungary.

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Changes to family related tax benefits in Hungary in July 2025

While the family tax benefit is being increased from July, eligibility for the tax benefit of mothers of four or more is narrowed down. As a result, payroll specialists need to pay extra attention to calculating taxes for employees this month, while the July take-home-pay of some employees will change in Hungary.

The post Changes to family related tax benefits in Hungary in July 2025 appeared first on Helpers Finance.