Work Hungary

If you plan to work in Hungary and are not a citizen of the European Union, the European Economic Area, or Switzerland, you will need to obtain a work permit and a residence permit. 

 

1: Finding an Employer

The first and most important step is to find a Hungarian employer willing to offer you a job. Without a specific job offer, it is almost impossible to obtain a permit, as it is issued for a specific position and company.

 

2: Employer Initiates the Process

In Hungary, the process of obtaining a work permit is usually initiated by the employer. They submit an application on your behalf to the relevant authorities. This is because the employer must prove that there are no available local candidates capable of performing the job.

 

3: Submitting the Application for a Work Permit and Residence Permit

In Hungary, there is a "Single Application Procedure" that combines the process of obtaining a work permit and a residence permit. The application is submitted to the regional office of the Hungarian Immigration and Citizenship Office.

 

When submitting the application, you and your employer will need to provide the following documents:

- Completed application form: A standard form provided by the immigration service.

- Valid passport: The validity must cover the entire period of the intended stay.

- Passport-size photos: Recent and meeting the requirements.

- Employment contract or official job offer: Signed by the employer and containing all employment conditions.

- Qualification documents: Diplomas, certificates, proof of qualifications and work experience.

- Proof of accommodation in Hungary: Rental agreement, invitation, or confirmation from the employer.

- Health insurance: Policy valid in Hungary.

- Proof of financial means: Bank statements or other documents proving your financial self-sufficiency.

- Police clearance certificate: May be required from your country of origin.

- Receipt of state duty payment: Confirmation of payment of all necessary fees.

 

4: Application Review

After submitting the application, the authorities will conduct an assessment, which can take from 30 to 70 days. In some cases, this period may be extended if additional information or verification is required.

 

5: Receiving the Permit and Entering the Country

Upon approval, you will receive a work permit and a residence permit. With these documents, you can enter Hungary and start working in accordance with the terms of your employment contract.

 

Additional Tips

Translation of documents: All documents in a foreign language must be translated into Hungarian by a certified translator.

Permit validity: Typically, the permit is issued for up to 2 years with an option for renewal.

Family: If you plan to relocate with your family, they will also need to obtain the appropriate residence permits.

Consultation with experts: It is advisable to consult immigration lawyers or specialized agencies to ensure the correctness of the process.

Employment for EU Citizens

Citizens of EU countries, the European Economic Area, and Switzerland have the right to move freely and work in Hungary without the need for a work permit.

 

Registration Procedure

Although a work permit is not required, there are some formalities that need to be completed:

- Residence registration: If you plan to stay in Hungary for more than 90 days, you must register your stay at the regional office of the Immigration and Citizenship Office.

- Obtaining a registration certificate: After registration, you will receive a registration certificate confirming your right to reside and work in the country.

- Tax number and social security number: For official employment, you will need to obtain a tax number and a social security number.

 

Employment for Non-EU Citizens

Citizens of countries outside the EU, EEA, or Switzerland are required to obtain a work permit and residence permit for legal employment in Hungary.

Use online resources for job search

Profession.hu: The largest Hungarian job portal with vacancies in various sectors.

CVonline.hu: Offers a wide range of vacancies and useful job search tips.

Jobline.hu: A portal with a user-friendly interface and up-to-date offers.

LinkedIn: An international platform for professional networking and job search.

Glassdoor: Provides information about companies, employee reviews, and available vacancies.

 

Government resources

National Employment Service of Hungary (www.nfsz.munka.hu): Offers employment services and labor market information.

Recruitment agencies

International agencies

Hays Hungary: Specializes in IT, finance, and engineering staffing.

Randstad Hungary: Offers a wide range of employment services across various sectors.

Local agencies

Grafton Recruitment: Has a strong presence in the Hungarian market and good connections with employers.

Kelly Services Hungary: Provides vacancies in various sectors, including manufacturing and services.

Events and exhibitions

Startup Safari Budapest: Annual event for IT specialists and entrepreneurs.

Job Fairs: Career fairs organized by universities and professional communities.

Social networks

Meetup: Platform for organizing interest-based meetings, including professional groups.

Facebook groups: Join expat and professional communities in Hungary.

Language requirements

 

Hungarian language

Main language: Hungarian is the official language of the country and is widely used in all spheres of life. Knowledge of Hungarian significantly enhances your chances of employment, especially in local companies and sectors oriented towards the domestic market.

Proficiency level: For many positions, at least level B1-B2 is required on the Common European Framework of Reference for Languages.

 

English language

International companies: In large cities, especially in Budapest, many international companies use English as the working language. Proficiency in English coupled with Hungarian makes you a more competitive candidate.

 

Other languages

German: Due to strong economic ties with Germany and Austria, knowledge of German is highly valued, especially in the service and industrial sectors.

French, Spanish, and others: Knowledge of additional foreign languages can be an advantage in international companies and the tourism sector.

 

Qualification requirements

 

Education

Higher education: A Bachelor's degree or higher is required for many professional positions.

Technical specialties: Engineers, IT specialists, and other technical professions are particularly in demand.

Humanities: Opportunities exist, but competition may be higher.

 

Recognition of foreign diplomas

Nostrifikáció: In some cases, official recognition of your diploma in Hungary is necessary. The procedure is carried out by the Ministry of Human Resources.

 

Professional experience

Work experience: Previous experience in the relevant field increases your chances of employment.

Certificates and licenses: Some fields (e.g., medicine, education) require specific licenses or certificates valid in Hungary.

 

Other important requirements

 

Work permits and visas

EU/EEA and Swiss citizens: Can work in Hungary without a special permit but must register their stay if it exceeds 90 days.

Non-EU citizens: Must obtain a work permit and residence permit.

 

Tax number and social security number

- A tax identification number is required for official employment.

- A social security number is necessary to access medical and social services.

 

 

Practical tips for job seekers

 

Preparing documents

- Resume: Prepare your resume in English and, if possible, in Hungarian.

- Cover Letter: Customize it for each job application.

- Document Translations: Use certified translators for official documents.

 

Useful Links

 

Ministry of Human Resources of Hungary: (https://www.kormany.hu/en/ministry-of-human-resources)

National Employment Service: (https://nfsz.munka.hu/)

Skilled Labor

 

Information Technology

- Software Programming and Development: The demand for specialists in software development, web development, and mobile applications is consistently high.

- Cybersecurity: With increased digitalization, there is a growing need for information security experts.

- Data Analytics: Companies are seeking specialists in big data analysis and business analytics.

 

Engineering and Manufacturing

- Automotive Industry: Hungary serves as a manufacturing hub for companies like Audi and Mercedes-Benz, creating demand for engineers and technical specialists.

- Electrical and Mechanical Engineering: Electrical engineers, mechanics, and automation specialists are in demand.

 

Healthcare

- Medical Specialists: Doctors, nurses, and other healthcare workers are in high demand, particularly in public institutions.

- Pharmaceuticals: Hungary has a developed pharmaceutical sector requiring skilled professionals.

 

Financial Services

- Accounting and Auditing: International companies are looking for specialists with experience in international standards.

- Banking: There is demand for specialists in risk management, lending, and investments.

 

Unskilled Labor

 

Manufacturing and Assembly

- Factories and Plants: There is a constant need for workers on production lines, especially in the automotive and electronics industries.

 

Construction

- Construction Workers: The construction sector is actively developing, requiring workers for various projects.

 

Agriculture

- Seasonal Workers: During harvest and planting periods, there is demand for workers for agricultural tasks.

 

Logistics and Warehousing

- Warehouse Workers: With the increase in e-commerce volumes, there is a growing need for staff in warehouses and logistics centers.

Structure of the Pension System

 

The Hungarian pension system consists of three main components:

State Pension (first pillar): A mandatory system financed by contributions from employees and employers.

Occupational Pension Schemes (second pillar): Additional pension plans offered by employers.

Private Pension Accounts (third pillar): Voluntary individual pension accounts managed by private funds.

 

State Pension

 

Contributions

- Employees: Contribute 10% of their salary to the pension fund.

- Employers: Contribute 12.5% of the employees' payroll.

 

Eligibility Requirements

Minimum service period: To receive a full pension, at least 20 years of service are required.

Retirement age: Gradually increasing and currently set at 65 years for both men and women.

 

Pension Amount

The amount of the state pension depends on the average earnings over the entire working period and the total service period.

 

Occupational Pension Schemes

Many employers in Hungary offer their employees additional pension plans, which may include:

- Company pension funds: Managed by employers and provide additional benefits to the state pension.

- Collective pension schemes: Pool contributions from multiple employers and employees for more stable payouts.

 

Private Pension Accounts

Individual pension accounts allow citizens to independently accumulate funds for retirement.

- Tax benefits: Contributions to such accounts may provide tax advantages.

- Flexibility: Contributors can choose investment strategies and management companies.

 

Features for Immigrants

Foreign citizens working in Hungary are required to make contributions to the state pension fund on par with the country's citizens.

Social Security Agreements: Hungary has bilateral agreements with a number of countries allowing work experience gained outside Hungary to be considered when calculating pensions.

European Union: EU citizens can aggregate periods of work in different member countries to receive a pension.

The main types of social insurance include:

 

Pension insurance

Provides financial support to citizens after reaching retirement age.

 

Medical insurance

Provides access to medical services, including outpatient and inpatient treatment, prevention, and rehabilitation.

Coverage:

- Outpatient treatment: Doctor consultations, diagnostics, laboratory research.

- Inpatient treatment: Hospitalization, surgical interventions, rehabilitation.

- Pharmaceuticals: Partial or full coverage of medication costs.

 

Unemployment insurance

Provides financial support to individuals who have lost their jobs through no fault of their own.

Conditions for receiving:

- Minimum service period: At least 360 days of work in the last three years.

- Benefit amount: Depends on previous salary and is a certain percentage of it.

 

Sickness insurance

Ensures payment of benefits in case of temporary disability due to illness.

Benefits:

- Sick leave: A certain percentage of the average salary is paid for the illness period.

 

Maternity insurance

Provides financial support to women during pregnancy and after childbirth.

Benefits:

- Maternity leave: A certain percentage of the average salary is paid during the specified period.

 

Accident insurance

Provides compensation for injuries or illnesses sustained at the workplace.

Benefits:

- Medical assistance: Coverage of treatment costs.

- Compensation: Payments in case of temporary or permanent loss of working capacity.

 

Regular contributions from workers and employers guarantee access to medical services, financial assistance in case of unemployment, illness, maternity, and retirement.

Hungarian labor legislation regulates relations between employers and employees, ensuring the protection of the rights of both parties.

 

Dismissal

 

Grounds for Dismissal

An employer may terminate an employment contract for the following reasons:

- At the employer's initiative: In cases of serious misconduct, insufficient qualifications, or economic reasons.

- At the employee's initiative: The employee has the right to terminate the contract, notifying the employer in writing.

- By mutual agreement: The employer and employee can agree to end the employment relationship on mutually beneficial terms.

 

Notice

The notice period depends on the duration of employment:

- Less than 3 years: 30 days.

- 3 to 5 years: 35 days.

- 5 to 8 years: 45 days.

- 8 to 10 years: 50 days.

- More than 10 years: 60 days.

The employer is required to provide written notice stating the reasons for dismissal.

 

Severance Pay

The employee is entitled to severance pay if the employment relationship lasted at least 3 years:

- 3 to 5 years: 1-month salary.

- 5 to 10 years: 2-month salary.

- 10 to 15 years: 3-month salary.

- 15 to 20 years: 4-month salary.

- Over 20 years: 5-month salary.

 

Leave

 

Annual Paid Leave

All employees are entitled to annual paid leave, which consists of basic and additional leave:

- Basic leave: 20 working days per year.

- Additional leave: Depends on the employee's age and number of children. For example, employees over 25 years receive an additional day of leave, and additional days are given for children under 16.

 

Parental Leave

Employees are entitled to parental leave:

- Maternity leave: 24 weeks, of which 2 weeks are mandatory.

- Paternity leave: 10 days, which can be used within two months after the child's birth.

- Parental leave: Until the child reaches 3 years old, provided without salary.

Since January 1, 2023, there is a right to 5 working days of unpaid leave per year to care for a relative in need of assistance.

 

Holidays

The following official holidays are established in Hungary, on which employees are relieved from work:

January 1: New Year.

March 15: Revolution Day of 1848.

Easter Monday: Date changes annually.

May 1: Labor Day.

Whitsun: Date changes annually.

August 20: St. Stephen's Day.

October 23: Revolution Day of 1956.

November 1: All Saints' Day.

December 25-26: Christmas.

The employer is obliged to provide a day off on these days or compensate for work on holidays with additional pay.

Main Professional Unions in Hungary

In Hungary, several major union associations operate, each covering different industries and economic sectors:

 

Hungarian Confederation of Trade Unions: The largest association representing employees' interests across various sectors, including industry, services, and the public sector.

 

Hungarian Workers' Confederation: Focuses on protecting workers' rights in the private sector, especially in industry and manufacturing.

 

Hungarian Confederation of Labor Unions: Unites unions from various industries, including transportation, healthcare, and education.

 

Hungarian Union of Civil Servants: Represents the interests of public sector workers, including municipal and government institutions.

 

How Unions Can Help Workers

 

- Protection of labor rights: Unions ensure compliance with labor laws and protect workers from illegal dismissals, discrimination, and violations of working conditions.

- Wage negotiations: Unions conduct collective bargaining with employers for wage increases and improvements in working conditions.

- Legal support: Union members receive advice and representation in courts and administrative bodies on labor dispute issues.

- Training and development: Many unions organize training sessions and seminars to enhance the skills and professional development of their members.

- Social programs: Unions may offer various social benefits to their members, including health insurance, pension programs, and other support types.

 

For immigrants, union membership can be especially beneficial:

Adaptation to local conditions: Unions help new workers understand local labor laws and workplace culture.

Protection against discrimination: Unions actively fight workplace discrimination, ensuring equal rights for all workers.

Language support: Some unions offer materials and consultations in multiple languages, making communication easier for non-Hungarian-speaking workers.

 

Membership in a union provides workers with additional guarantees and support, improving working conditions and protecting their rights in Hungary.

Hungary, located in the heart of Europe, offers favorable conditions for doing business due to its strategic location, developed infrastructure, and state support. 

Company Registration

Forms of ownership:

- Sole proprietorship: Suitable for small business with minimal risks.

- Limited Liability Company: The most popular form for small and medium-sized businesses.

- Joint-stock company: Designed for large businesses with the possibility of attracting investors.

Main taxes:

- Corporate tax: The rate is 9%, one of the lowest in Europe.

- Value Added Tax (VAT): Standard rate is 27%, reduced rates are 18% and 5% for certain goods and services. 

- Tax on Dividends: The rate is 15%.

It is important to consider that the tax system can change, so it is recommended to consult local tax specialists.

 

Labor Legislation

Labor Contracts: must be concluded in writing; Must include conditions of employment, payment, and other mandatory elements.

Working Hours:

- Standard workweek — 40 hours.

- Overtime work is paid additionally.

Leave: The minimum annual paid leave is 20 working days, increasing with age and seniority.

 

Business Environment

Hungary actively attracts foreign investments by offering various incentives:

Government Subsidies: For projects that create new jobs or implement innovations.

Tax Benefits: For certain industries and regions.

Industrial Parks: With ready infrastructure for production and logistics.

In addition, the country has a developed transportation network, a skilled workforce, and a stable economic environment.

 

Accounting and Reporting

Companies are required to maintain accounting records in accordance with Hungarian standards and submit annual financial reports. Some companies are subject to mandatory audits.

 

Licensing and Permits

Specific activities require obtaining special licenses or permits. It is recommended to clarify the requirements for a specific industry in advance.

Thus, Hungary provides favorable conditions for doing business due to low tax rates, strategic location, and government support. However, successful entrepreneurship requires careful study of local legislation and business practices.