Employer of Record in Hungary & PEO with INS Global

Employer of Record in Hungary & PEO

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), often called a global EOR (Employer of Record) can provide companies with a cost-effective, quick, and simplified global mobility and expansion strategy by taking care of essential HR services and offering compliance assurance in unfamiliar markets. INS Global’s PEO in Hungary allows companies to hire or transfer employees within 48 hours.

An EOR in Hungary is an organization that acts as the Employer of Record for companies wishing to streamline the global expansion process. By making hiring and managing overseas employees simpler, cheaper, and safer through their innovative technology-based EOR solution, INS Global offers locally based solutions to global employment problems.

Want to have a Team in Hungary TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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.

Employer of Record in Hungary & PEO - Summary

Employer of Record in Hungary & PEO

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 it increases 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.  

  • Avoids high costs 
  • Avoids complications or delays 
  • Avoids bureaucratic complications 
  • Provides access to professional and technical expertise 

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR Company Incorporation
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 - 9%
Closed During Pandemic
Employer of record Hungary


Manuel Ramos


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.


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 - 2023

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 2023, 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.  

Employer of Record in Hungary & PEO


Discover More Solutions in Hungary


In Hungary, the price of specialized EOR services is calculated as a portion of a coworker’s monthly income. This price includes all HR tasks required to ensure compliance with all local employment rules.  

Managing employer duties through an EOR without a brand-new local company structure in Hungary is secure, legitimate, and efficient. EOR services achieve this by offering first-rate HR support and in-depth familiarity with the regional legal system. 

When implementing an EOR service agreement, your team members will be legally protected, receive correct and timely monthly payments, and be eligible for all Hungarian employee benefits.  

In addition to having complete control over their work, independent contractors who interact with clients through a Hungarian EOR may be eligible for many or all of the same benefits as normal employees or if they were working with an umbrella company. 

Our recruiting professionals can find the best local Hungarian staff for your requirements by utilizing their broad professional networks, in-depth knowledge of available local business resources and standards, and strict adherence to ethical hiring practices.  

As a result, integrating them into our Hungarian EOR system will be easier and more effective than employing these candidates through more conventional hiring procedures. 

You obtain thorough compliance-assured employment outsourcing help from a genuinely global EOR services provider in Hungary through INS Global. Employer of Record services help you to stay compliant with all local and national laws in Hungary. EOR support means you can pursue your next opportunity anywhere in 100+ countries, including Hungary. 

Some Hungarian PEO or EOR service providers could have strict hiring standards or limit the number of workers you can hire at once. However, your long-term business plan might require you to scale up or down quickly. You can work with us and hire as few or as many individuals as you need to accomplish your goals. 

Payroll costs, hiring fees, signing bonuses, and other direct and indirect expenditures like incentive schemes, managing the taxes of foreign workers, and social insurance should all be included in the total cost of hiring in Hungary. 

By using Hungarian PEO services, you won’t need a local office, saving you from onerous incorporation regulations.  

It is still a good idea to give your employees the option to work in a shared workspace or the freedom to do so whenever and wherever it’s most convenient. Additionally, INS Global can assist in locating suitable workspaces in Hungary. 

We can deal with all distinctions when Hungarian citizens or foreign workers are subject to particular local employment standards, tax legislation, employee incentives, visa requirements, or work permit rules.  

EOR and PEO solutions can be used by companies of all sizes, from SMEs to large corporations, to speed up their expansion. It is now feasible to hire local or foreign workers effectively and securely thanks to solutions for employment outsourcing.  

Our services can even replace more complex internal HR requirements and are easy to scale up to meet the demand for new hires.  

The legal expertise provided by PEO and EOR services may be useful for businesses in a range of industries that either don’t have their own structures in a target country (or wish to avoid cost-scaling difficulties while focusing on expansion).  

Staffing firms and umbrella businesses are two more methods that can be used to directly or indirectly engage independent workers.  

In Hungary, most independent contractors are self-employed or run their own small businesses. When hiring contractors, Hungarian law mandates labor service agreements rather than employment contracts. 

An independent contractor may be needed to provide a resume, portfolio, verified references, and a signed NDA before beginning work in Hungary. 

A company with the correct tax identification registration can run payroll for their employees, typically on a monthly basis. Employers are responsible for social security contributions and tax management on behalf of their staff.  

At the beginning of 2023, Hungary raised the minimum wage to HUF 232 000 per month, with a higher minimum for educated professional workers of HUF 296 400. These amounts are predicted to rise again before the end of the year.  

As an EU and Schengen Area member, Hungarian visas follow standard EU patterns. For EU and EEA citizens, no documentation is required to live and work in Hungary. A work visa and residence permit are required for citizens of most other countries. A work visa in Hungary may be valid for up to 3 years at a time, with the option to apply for an EU Blue Card (valid for 4 years for qualified professionals).  

In Hungary, employers and employees contribute to the employee’s social security fund amounts equivalent to a percentage of the employees standard wage. This social tax in Hungary is 13% for employers and 18.5% for employees. 

All employees in Hungary are eligible for a pension, paid leave, health exams, and some subsidized allowances for food and transport. While not mandatory, many companies offer supplementary health insurance.  

In Hungary, employment contracts should be concluded in writing, with changes also agreed upon in writing. Employers may temporarily reassign employees or adapt the conditions of a contract, but this cannot exceed 44 days in a calendar year.  

The healthcare system in Hungary is funded by taxes, social security contributions, and co-pays, with 100% of the population eligible for services through this system. While most treatment is free, some additional services, including prescriptions, may include additional costs.  

Notice periods in Hungary vary from 30 to 60 days, depending on the length of the employee’s service.  

Employees with a minimum of 3 years of service with a company are eligible for 1 month of standard salary as severance pay. This amount increases by 1 month after 5, 10, 15, 20, and 25 years of service.  

The National Labor Office (NMH) of Hungary carries out checks and oversees employee rights through numerous Labor Inspection Units throughout the country.  

Hungarian employees are eligible for an average of 11 days of paid time off per year due to national holidays