Salaries

Garden leave and the Hungarian work permit

Garden leave refers to a period when an employee still receives a paycheck but stays away from the workplace, without access to workplace systems or customers. In Hungary, it is a normal part of ordinary termination by the employer, allowing employees time to find a new job or rest between employments. For foreign workers, it still counts as employment, so work permits remain valid throughout.

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Who can get an EU Blue Card in Hungary?

The EU Blue Card is a type of work permit designed to attract highly qualified people to the EU. Originally modeled on the American Green Card, the idea was that it should be available all over the EU, offering not only simplified work permit procedures but also easy transfer between the member states. Read on to learn how it really works!

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Employment vs. outsourcing – when to hire an employee in Hungary?

Do you need more manpower at your Hungarian company? You can get it either by making a hire, or by outsourcing tasks to a provider. But which to choose? For ongoing, regular, or recurring tasks, it usually makes more sense to hire an employee, while for more ad hoc tasks, contracting a provider might be a better solution. Let us help you review your options.

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Personal income tax in Hungary

Personal income tax is levied on all kinds of income a natural person earns. In Hungary, it is 15% regardless of how much someone earns, but various tax benefits are available based on age, marital status, disability, and other factors.

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EU Blue Card in Hungary

The Blue Card was created to be a more or less uniform work permit option across the EU. It targets highly skilled workers who would occupy well-paying positions, and it comes with additional benefits compared to other work permit types.

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Social security contribution in Hungary

Social security contribution is supposed to cover social services in Hungary including pensions, allowances, and public healthcare. It is most obvious as a payroll tax at 18.5% of the gross salary, which employers deduct and forward to the authorities on behalf of their employees. At the same time, it is also paid by self-employed people, and sometimes its rate may be higher due to minimum expectations.

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Pay transparency rules probably postponed in Hungary

The EU directive on pay transparency is supposed to be implemented by June 7, 2026 in all member states. Because of the recent general elections and change of regime in Hungary, the introduction of the new regulations will probably be delayed. However, Hungarian companies should still prepare for the new obligations.

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Tipping in Hungary – How much tip is expected?

Standard tip in Hungary is 10%. The amount of the tip should reflect your satisfaction with the service, but you will not be expected to tip more than 20%. Many restaurants also charge a service fee, which cannot be above 15%. If there is a service fee, it is best to politely ask the waiter whether you are expected to tip too.

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Sick leave allowance at your Hungarian company

Sick leave is a form of paid time off in Hungary. When your employees are sick, they are not supposed to come to work so they will not infect their colleagues and customers, and they can recover faster. The number of sick leave days cannot be limited, and you are supposed to pay sick leave allowance throughout, although the form and amount of compensation will change over time. Learn what sick leaves mean for your Hungarian business.

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