It's easier than ever for employers to hire remote workers around the globe. However, because more employers are partnering with foreign remote talent, more companies are learning how difficult it can be to comply with international tax and labor laws.
Hungary, like every country, has unique labor laws that employers must comply with. One of the biggest challenges facing global employers is navigating the various leave requirements in each country where their employees live and ensuring employees receive their entitled leave benefits.
Understanding how to draft a leave policy in Hungary is essential to creating compliant employment contracts in the country. Suppose you're unfamiliar with the regulations regarding employment in Hungary. In that case, your company could be at significant risk of financial or legal repercussions if you fail to comply with all Hungarian laws.
Partnering with an employer of record (EOR) like Skuad can ensure companies remain compliant with all aspects of hiring in Hungary, reducing international hiring risks.
Annual leave in Hungary
Employees in Hungary are entitled to a minimum of 20 days of paid time per year. This increases as the employee gets older until they reach the maximum number of eligible days off — 30 days. Below is a table indicating the number of vacation days employees in Hungary are entitled to.
Although it's common for the employee and employer to agree upon how vacation days are allocated, employers are legally entitled to determine when their employees go on vacation, so long as:
- Their employees can choose when they wish to use at least seven of their vacation days
- The annual leave time includes at least one period of leave that lasts for a minimum of two weeks (this is typically given in summer)
One platform to grow your global team
Hire and pay talent globally, the hassle -free way with SkuadTalk to an expert
Unpaid leave in Hungary
Although not an official entitlement, employers in Hungary often offer employees unpaid time off in addition to annual leave. When an employee requests unpaid leave in Hungary, they should provide employers with at least 15 days of written notice before taking leave; the leave shouldn't exceed 30 days.
Public holidays in Hungary
There are 11 public holidays in Hungary to which employees are entitled. Employers will be required to allow employees time off with pay to observe these holidays.
In addition, if an employer requires an employee to work on a public holiday, they will be required to pay their employee twice their typical hourly wage. In addition, if the employee works overtime on a public holiday, the employer will be required to compensate them with an additional 50% of their regular hourly wage.
Below is a list of the date and days of the week these holidays fall in 2023.
Sick leave in Hungary
Employees in Hungary are entitled to 15 days of sick leave that their employer pays at a rate commensurate with 70% of their typical pay. After 15 days, compensation for employee sick time transfers to Hungarian social security.
The following groups of employees are not entitled to sick leave but may be entitled to other leave benefits (e.g., maternity leave):
- Mandated employees
- Employees who are experiencing a high-risk pregnancy
- Employees who can receive benefits for injury or illness sustained in the workplace
Employers must ensure their workers are eligible for sick leave and provide them with paid time off if they are.
Parental leave in Hungary
Employers must comply with the leave policy in Hungary when hiring employees in the country. According to Hungarian labor laws, employees are entitled to the following parental leave entitlements:
Maternity leave in Hungary
Pregnant employees are entitled to 24 weeks of maternity leave. Employees can begin taking this leave at any time during their final four weeks of pregnancy or wait until they go into labor to begin their leave.
Although employees are not required to take full maternity leave benefits, they are required by law to take a minimum of two weeks off.
Breastfeeding break in Hungary
Upon returning from maternity leave, employees who have given birth are entitled to take two one-hour breastfeeding breaks throughout their workday. This is a paid benefit to which they are entitled until their child reaches six months; when their child is between six and nine months of age, employees are entitled to a single paid one-hour breastfeeding break.
When an employee gives birth to twins, they are entitled to twice as much time for breastfeeding breaks (four hours for the first six months; two hours between six and nine months).
Paternity leave in Hungary
Employees are entitled to five days of paternity leave in Hungary, which they can take at any point until their child is two months old. If an employee has twins, they are entitled to an additional two days of paternity leave.
If the mother is hospitalized or passes away, the employee is entitled to their partner's maternity leave benefits.
Adoption leave in Hungary
Employers in Hungary are required to provide adoptive parents with the same necessary benefits as parents who conceive naturally:
- Adoptive mothers are entitled to 24 weeks of paid maternity leave, which they can take anywhere from four weeks before receiving their child or children
- Adoptive fathers are entitled to five days of paternity leave when adopting one child or seven days of paternity leave when adopting more than one child
- Employers will not be required to provide employees with breastfeeding breaks in the event of adoption
Childcare leave in Hungary
Once the mother's maternity leave ends, employees are entitled to childcare leave (parental leave). Either parent is eligible to take this paid parental leave until their child turns two. However, both parents cannot take parental leave.
In addition to this paid benefit, employees are entitled to take unpaid time off to care for their child at any point until they turn three.
Parents in Hungary are also entitled to days off in addition to their annual leave time. This employee leave is allocated in the following ways:
- If an employee has one child, they are eligible for an additional two days of leave per year
- If an employee has two children, they are eligible for an additional four days of leave per year
- If an employee has three or more children, they are eligible for an additional seven days of leave per year
- If an employee has a child with disabilities, they are eligible for an additional two days of leave per year
Bereavement leave in Hungary
Many countries offer employees bereavement leave (also sometimes called compassionate leave or compassionate care leave) when a close family member (e.g., spouse, parent, grandparent, sibling, child, etc.) passes away.
Although this is not a statutory benefit in Hungary, offering two days (or more) of supplementary bereavement leave to employees who experience a death in the family may help employees feel valued.
Stay compliant with the leave policy in Hungary
Hiring employees in foreign countries involves many challenges, including time differences, language barriers, and more. But compliance is one of the major risks employers assume when partnering with employees in foreign countries like Hungary. If your company employs remote employees in Hungary, you'll be expected to offer them they're entitled benefits and pay taxes in Hungary.
Unlike hiring domestic employees, you will need to develop a comprehensive knowledge of local tax and labor laws if you do not choose to work with an employer of record like Skuad. Yet, partnering with Skuad can ensure your company remains compliant with all aspects of hiring employees, including the leave policy in Hungary. Skuad also ensures you adhere to all tax regulations, making international hiring and HR operations easier.