What is FEOR in Hungary?

FEOR in Hungary is the standard classification of occupations. You will need it when you report a new hire to the Tax Authority, and it is used to make statistics about how the population is employed.

What is FEOR used for?

How each position is called and what exactly falls under an employee’s work description may vary company by company. This makes creating statistics very difficult on the national and international level. However, just choosing one job from a list of officially accepted jobs would be very limiting for businesses when planning their operations.

By allowing companies to decide the content of each position while also requiring them to choose one position from an official list the position covers more or less, everyone gets the best of both worlds. Employers keep their freedom to shape their operation as it suits their business the best, while authorities still get to create meaningful statistics.

FEOR for classification

In this sense, FEOR is much like TEÁOR or NACE, about which we wrote in our previous article. While TEÁOR classifies the activities of businesses, FEOR classifies the activities of employees. FEOR is an abbreviation for “Foglalkozások Egységes Osztályozási Rendszere”, referred to as the Hungarian Standard Classification of Occupations (HSCO) in English.

In this sense, FEOR is similar to ISCO, which is the International Standard Classification of Occupations. However, while TEÁOR is supposed to be updated alongside NACE, FEOR is allowed to be more loosely approximating ISCO. Because of this, correspondence tables are available to make comparisons with ISCO easier.

The latest version of FEOR is called FEOR’08. It is based on ISCO’08, which was introduced in 2008. In turn, FEOR’08 was introduced in 2011 in Hungary.

FEOR is a decimal system

Just like TEÁOR, FEOR employs a decimal classification on 4 levels, with 4 figures. For example, if your company’s activity is developing computer games, your employees will most probably be software developers:

• Level 1: numbers 0-9. The main area of the activity. E.g. 2: Professionals.
• Level 2: 1 digit narrowing down the area of the activity. E.g. 21: Technical, information technology and science related professionals.
• Level 3: 1 digit describing the group of the activity. E.g. 214: Software and applications developers and analysts.
• Level 4: 1 digit describing the class of the activity. E.g. 2142: Software developer.

FEOR at your Hungarian company

The FEOR code of a new hire needs to be reported to the Tax Authority when you are reporting the start of the employment. However, it makes sense to find the corresponding FEOR code already when you are putting together the job description, before you post the job advertisement. You can review this when you sign the contract, in case something changed during negotiations. This way you do not have to scramble when the time to submit the report comes, and you have eliminated one more chance for making a mistake.

Remember that the FEOR code does not need to be an exact match for the job description. It is enough if it covers most of the employee’s activity.

When the job description of an employee changes, for example because of a promotion, it makes sense to review their FEOR code and update it as necessary.

FEOR codes may be especially relevant when you want to bring foreign employees to work for your Hungarian company. Hungary offers a variety of work related residence permits with different perks, and some permit types are tied to FEOR codes. As a result, it makes sense to consult an expert like those working at the Immigration Team of Helpers Hungary to see which work permit will be the best fit for your business and your employee.

The Helpers Team at your service

Helpers Finance offers payroll and HR support as well as accounting services, while Helpers Hungary can take care of residency related matters and business setup. As a result, when you need help with employing either a Hungarian or a foreign employee, you can count on our expertise.

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