Working in Hungary

Hungary's entry to the European Union in 2004 opened its doors to an impressive number of foreign companies. The attention from the international business community led to booming investments that helped create a favourable employment climate. Since then, there has been a high influx of expats seeking success in Hungary. 

As Hungary enjoys one of the highest economic growth rates in Central Europe, expats find it on their list of places to discover. This country possesses the 57th largest economy in the world with a USD 265.037 billion Gross Domestic Product measured by Purchasing Power Parity or PPP. Aside from that, Hungary is also known for its high human development index and globally competitive skilled workforce. The Pearl of Danube continues to be one of the most dominating powers in Eastern and Central Europe that attract foreign direct investments. It also serves as the home to several Fortune Global 500 including OTP Bank, Gedeon Richter Plc., and Magyar Telekom, the largest telecommunications company in Hungary. 

Hungary’s Leading Industries 

There are currently vast opportunities in the IT, car manufacturing, publishing and tourism industries, although the biggest demand comes from the services sector whereas candidates with a strong education background, skills and experience almost guarantee employment. Budapest, the capital, is also known as Hungary’s centre for business and finance. The heart of the country is known as an alpha-world city because of its lead role in the financial and banking sectors. Expats bound to Hungary will also find employment in the fields of: 

• Agriculture
• Healthcare
• Heavy Industry (metallurgy, mining, steel and machine production)
• Automobile Production
• Transport and Services

"I have found the system predictably filled with red tape, but overall, one of the smoother visa processes I’ve been through. Again, my school helped some with this, which I think is standard."- Amy, Expat in Budapest, Hungary

Average Salary and Work Hours 

Salaries depend on position and employment conditions, but monthly average earnings in Hungary are HUF 431,358 or USD 1,500. International companies typically pay higher while expats also generally receive higher wages than locals do. In terms of contract benefits such as health insurance and housing assistance, expats have an advantage too. 

Business in Hungary calls for eight hours of daily work, although some jobs may require more it will not exceed 12 hours. A typical work week consists of 40-60 hours according to the Hungarian Labour Code. Female employees in this country are also eligible 24 weeks of maternity leave. 

Taxation in Hungary 

Hungary's taxation system is progressive, which means the higher your income is, the more you are taxed. Those receiving salaries up to 1,700,000 HUF pay the government about 18% of income while those receiving more than this amount are taxed at 36%. Those who earn more than HUF 7,137,000 pay 4% solidarity tax while cuts are enjoyed by some working sectors. Foreign workers who are staying temporarily in Hungary are only taxed on their Hungarian income, but expats who are moving for good pay both on what they earn in Hungary and their home country.