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
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.
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.
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.
INS Global’s team of legal experts are always on hand to ensure total compliance with all local labor laws and regulations
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
We handle as many HR services as you need, allowing you to focus on what matters to your success targets
Our global expansion experts will provide you with their constant support and guidance
We provide all the services of an entire HR team or department via a single point of contact
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Level 39, Marina Bay
Financial Centre Tower 2,
10 Marina Boulevard
Singapore 018983
