INFORMATION ON EMPLOYMENT OF THIRD-COUNTRY NATIONALS IN HUNGARY

 

The present information applies to you if you:

  • reside in the territory of Hungary to work as an au pair,
  • are seeking admission to lawfully perform work in a self-employed capacity for remuneration (e.g. private entrepreneur),
  • are seeking admission for the purpose of study,
  • plan to enter and reside in the territory of Hungary for a period not exceeding ninety days within a one hundred and eighty day period.

Third-country nationals may work in Hungary only under certain conditions. On general principle, employment shall be subject to authorisation.

When is the permit not required?

Employment of persons recognised as refugees, persons admitted for subsidiary protection or persons enjoying temporary protection and persons having immigrant or permanent resident status does not require a work permit.

What are the relevant laws?

Authorisation of employment of third-county nationals in Hungary is governed by the following laws:

  • Act IV of 1991 on Job Assistance and Unemployment Benefits 
  • Government Decree 445/2013 (XI. 28.) on the Authorisation of Employment of non-EU Nationals in Hungary not on the basis of single application procedure; the exemptions of such authorisation obligation; the involvement of the metropolitan and county government offices as opinion makers in single application procedures; the notification of employment of non-EU nationals’ authorisation for free employment in Hungary and salary reimbursement.

What types of permits do exist?
Pursuant to Flt., third-country national can enter into a contract for employment relationship in the territory of Hungary (with the exceptions as specified by law) on the basis of

  • residence permit issued by the immigration authority under a single authorisation procedure governed by the Act on the Admission and Right of Residence of Third-Country National or
  • work permit issued for a third-country national applied for a residence permit for the purpose of employment in Hungary under a non-single authorisation procedure

DOCUMENT TO BE SUBMITTED

 APPLICANT AUTHORITY WHERE THE APPLICATION SHALL BE MADE

application for work permit

employer

district authority competent for the employment

filing a demand of employment

employer

district authority competent for the employment

employer data sheet

employer

district authority competent for the employment

APPLICATION FOR WORK PERMIT

The work permit is a general authorisation that allows the employer to employ third-country national for work, at work place and in a period determined in the work permit.

Application for work permit shall be submitted by the employer to the district authority competent for the employment, using a form.

General condition for issuing work permit is that there is no adequate national personnel for the work to be carried out by third-country national and the third-country national shall be adequate to the work

SUBMITTING A DEMAND OF EMPLOYMENT

For the purposes of the examination of availability adequate national personnel, the employer submit a demand of employment to the district authority in whose area of competence the personnel would be employed. It is possible that the employer files the demand of employment and the application for work permit by the government office simultaneously.

In the demand of employment the employer determines, in particular, the work what he the employee needs for and what he offers as a compensation.

In Budapest, BFKH Foglalkoztatási Főosztály Közfoglalkoztatási és Igazgatási Osztály authorises employment of third-country nationals in Hungary.

The content of the form of demand of employment shall be the same as the content of the application for work permit (e.g. job, base salary, place of employment, etc.)

Demand of employment may be filed using a form and it may take place maximum 60 days before filing the application for work permit.

 

SUBMITTING EMPLOYER DATA SHEET

If the employer did not make a demand for employment earlier, the employer shall submit an employer data sheet simultaneously with the form of demand of employment. Further, it is sufficient to submit the form of demand of employment.

INFORMATION ON SALARIES, BENEFITS, TAXES AND HEALTH INSURANCE

What payment is the employee entitled to?

The employee’s wage must be determined in the employment contract.

We differentiate between gross and net wages. The gross wage is indicated in the employment contract, it does not equal the amount that the employee receives.

From the gross wage the employer pays the worker’s tax and contributions to the government. The employer shall pay the following payments to the Hungarian Government from the gross wage set in the employee’s employment contract:

  • 15% personal income tax
  • 10% pension contribution
  • 8.5% health insurance contribution

The employee receives 66.5% of the gross wage indicated in the contract of employment, ie the net wage.

The law requires employers to determine the minimum wage that employees have to get. For a full-time employee, ie the one who works eight hours a day, the minimum wage are set as follows:

  • In the year 2017, a gross 127,500 HUF, which is a net 84,788 HUF
  • In the year 2018, a gross 138,000 HUF, which is anet 91,770 HUF.

The guaranteed wage minimum for a worker who has at least a secondary education degree from a grammar school or a vocational school in positions where this degree is a must:

  • In the year 2017 a gross 161,000 HUF, a net 107,065 HUF,
  • In the year 2018 a gross 180 500 HUF, a net 119,700 HUF.

For the latter, it is important to note that the employee does not receive a larger wage if he or she has a secondary or higher education degree, but the job does not require to have such a degree.

Workers employed part-time (ie less than 8 hours a day) may receive less wages than the aforementioned.

What other benefits are eligible for the employee?

The employee may be entitled to reimbursement of work expenses, meal allowance, phone and lap-top fee according to the employment contract. These allowances, if provided by the employer, must be recorded in the employment contract.

Should the employee pay a tax to the Hungarian Government after the salary?

After receiving the net salary, the employee is not liable to pay tax to the Hungarian Government. Employer’s tax is paid by the employer on the employee’s gross wage in the employment contract.

 

Should I pay for a doctor at the hospital?

At the beginning of the employment relationship, the employer shall notify the competent authority of the employment relationship. Every month, the employer contributes 8.5% of the employee’s gross salary to the health insurance entitling the employee to use a full range of healthcare services, the employee is entitled to free treatment at public hospitals and general practitioners.

Is there a salary during the holiday?

For the duration of the basic and supplementary leave, the employee receives his full wage, which is called a leave for absence.

Is there a salary for the illness?

The employee is entitled to 70% of his wages for a period of illness not exceeding 15 working days per calendar year (sick leave). In the case of an illness exceeding 15 days in a calendar year, the employee is entitled to “sickness benefit”, which is a fraction of the wages.

Prospectus about employment relationship’s main content elements

How does the employment relationship come to be?

It comes into being with a contract, which needs to be in written form. The modification of the contract also has to be written down. The work contract’s detailed rules are regulated by the Hungarian Employment Law’s  1st act of 2012.

To what period does the contract applies?

The contract may be for a definite or indefinite time period. Firm-term work contracts’ period can not be longer than 5 years. The contract’s lenght can be influenced by how long the given employee can stay in Hungary according to residence permit.

What are the contract’s content elements?

In the contract, both sides have to agree on

  • employee’s base salary
  • employee’s scope of activities
  • the contract’s time period
  • the work location
  • in case of probation, the probation’s maximum 3 months duration

The employer at the latest on the 15th day from the beginning of employment informs the employee in writing about

  • the daily work time
  • bonus salary and other benefits
  • the method to settle the salary, the frequency of payment, and the day of payment
  • the tasks included in the work
  • the quantity of leave, its calculation method and outgiving, and
  • the proper law of the contract’s notice period to employer and employee, furthermore
  • wether the employer is under the effect of collective contract
  • the practicer of employer’s rights

The information and views set out in this report are those of the author(s) and do not necessarily reflect the official opinion of the European Union or the Ministry of Interior. Neither the European Union or the Ministry of Interior institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.