PEO in Hungary

Hire Globally, Pay Locally, Expand Effortlessly

INS Global’s PEO in Hungary can be your local partner for HR services outsourcing.   

A PEO (Professional Employer Organization) allows you to set up and operate in a new market without the necessity for a separate legal or physical presence in a foreign country.  

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Our team of global expansion specialists can help you achieve your goals in Hungary in a fraction of the time and  costs of traditional company incorporation.  

Want to have a Team in Hungary TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in Hungary - Summary

The Benefits of Working with a PEO or global EOR in Hungary

Assured Compliance

INS Global’s team of legal experts are always on hand to ensure total compliance with all local labor laws and regulations 

Time and Cost Saving

A PEO agreement can have your employees operating in Hungary in a matter of days, rather than the months it would usually take through company incorporation 

An Emphasis on Growth

We handle as many HR services as you need, allowing you to focus on what matters to your success targets 

Market Entry Strategies

Our global expansion experts will provide you with their constant support and guidance  

Streamlined Company Structure

We provide all the services of an entire HR team or department via a single point of contact 

Why Choose a PEO Over Company Incorporation in Hungary?

Expanding into a new country or market is often complicated. The long process of establishing a separate legal entity and incorporating itincreases the costs and time spent before you can begin operations. It also heightens the potential for problems due to with unfamiliar regulations.  

By working with a Hungarian PEO, you can bypass a lot of the red tape and regulatory steps required to incorporate a company in the country. This will allow your employees in Hungary to begin operations immediately while also being assured of total legal compliance.  

A PEO:
  • Avoids high costs 
  • Avoids complications or delays 
  • Avoids bureaucratic complications 
  • Provides access to professional and technical expertise 
Hiring an Overseas Employee

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How We Enable Global Expansion Through Our Hungarian PEO

  1. After making contact, we meet to discuss your needs in Hungary and prepare a strategy to suit you 
  2. Our PEO in Hungary provides you with the local entity necessary to transfer or hire employees  
  3. We organize the regulatory requirements of providing HR services to your employees 
  4. In just a matter of days, you and your employees can begin operating in Hungary 

How Do PEOs and EORs Differ?

When deciding to expand into a new country through an HR outsourcing services provider, it is helpful to understand the differences between a PEO (Professional Employer Organization) and an EOR (Employer of Record). While these two options provide many of the same services, they differ in how they deliver these services to your employees.  

  • A PEO is a third-party company that offers HR services to your employees 
  • These may include payroll or benefits management 
  • An EOR is a third-party company that offers the same services as a PEO but it also hires your employees on your behalf 
  • In this way, the EOR takes on all liabilities and responsibilities related to employment  
  • In a PEO agreement, the contract is made between the companies, whereas with an EOR, the contract is made with the employee and directed by the client company 

 

Depending on your situational requirements, INS Global offers both PEO and EOR services in Hungary. You can read our article on the differences here or contact our team of specialists today to learn more and see which service is best for you.  

Labor Law in Hungary

Employment Contracts In Hungary

All contracts in Hungary must be made in writing and  set forth the basic job details and requirements to be considered valid.  

Fixed-term contracts may not exceed 5 years.  

Probation periods may not exceed 3 months.  

Work Hours and Overtime in Hungary

Full-time employment in Hungary is equivalent to 8 hours per day, 5 days per week. Working hours may not exceed 12 per day.  

250 hours of overtime are allowed per year. Overtime is considered anything outside of the standard hours outlined in the employment contract. 

Overtime hours must be paid at 150% standard salary, or 200% during the weekend or other rest periods. 

Holidays and Annual Leave in Hungary

The minimum amount of paid annual leave days  an employee in Hungary is entitled to is 20 days, plus up to 10 extra days depending on the employee’s age.  

There are a minimum of 11 days of paid public holidays in Hungary, with some others being unofficial but expected. 

Sick Leave in Hungary

Employees in Hungary are eligible for up to 15 days of paid sick leave. This is paid at 70% of their standard salary by the employer.  

Beyond 15 days, employees can provide proof of sickness and receive up to a year of sick leave. During this time, a sick leave benefit is paid 1/3 by the employer and 2/3 by social security.  

Maternity and Paternity Leave in Hungary

Paid maternity leave in Hungary is 24 weeks. During this time, mothers are eligible for a maternity leave benefit of around 70% of their standard salary.  

Paid paternity leave in Hungary is 5 days, and  can be taken in the first 2 months after the birth of a child.  

After the end of maternity leave, one parent may choose to take parental leave until the 2nd birthday of their child. During this time, they can receive childcare benefit. 

Parents in Hungary are also entitled to a maximum of 7 extra days of paid annual leave, depending on the number of their children.  

Taxes and Social Contributions in Hungary

Corporate tax in Hungary is 9%. 

Personal income tax is a flat rate of 15% gross income.  

As of 2022, employers should expect to contribute around 13% of their employee’s standard salary towards social security contributions. The employee’s contribution is 18.5%.  

These social security contributions may not apply to non-Hungarian employees.  

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.