Hungary is a landlocked country in central Europe, bordered by Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia, and Austria.

It has a high-income economy and high human development index, where citizens enjoy universal health care and tuition-free education. Hungary has an export-oriented economy with significant achievements in science and technology.

The minimum wage in Hungary is HUF 200,000 per month, with a standard workweek of 40 hours at 8 hours a day. Overtime is regulated by contracts/collective agreements paid ay 150%-200% of the regular salary.

Parental Leave

Pregnant employees are entitled to 24 weeks of maternity leave paid at 70% of the salary, and fathers can receive 10 days of paid paternity leave within 2 months of the birth -- half of the leave is paid at 100% of the salary, and the other half is paid at 40%. Mothers can also take up to 2 years of leave while receiving maternity benefits from social security.

This additional leave can be taken by either parent and is paid at 70% of the salary (capped at 2x the minimum wage). There is also a Child Home Care Allowance benefit available to parents and grandparents caring for children under the age of 3, and employees who are caring for an individual in their household for medical reasons are now entitled to 5 unpaid days off per year.

Sick Leave

Employees in Hungary can receive 15 days of paid sick leave each year, which is paid by the employer at 70% of the salary. If the sick leave continues past the 15th day, the employee can continue to take time off up to 1 year (with the payment shared between the employer and Social Security).

Paid Leave

There are 11 public holidays, but it’s customary to grant some additional days for long weekends. Employees in Hungary are also entitled to 20 days of paid time off each year (which can increase according to the employee’s age up to 30 days for employees who are 45+). Employees with children can also take a few extra days off each year depending on the number of children.

Process

Employers can terminate a contract for reasons related to business, personal, or misconduct. A written notice and explanation for the termination is required and must be factual and clearly stated. Employers cannot terminate contracts while employees are on parental leave, military service, or other cases protected by Hungarian law.

Notice Period

The typical notice period is 30 days, however if the contract is terminated by the employer, the notice period is extended based on how long the employee worked at the company:

• 3-5 years = +5 days of notice
• 5-8 years = +15 days of notice
• 8-10 years = +20 days of notice
• 10-15 years = +25 days of notice
• 15-18 years = +30 days of notice
• 18-20 years = +40 days of notice
• 20+ years = +60 days of notice

Severance Pay

If the employer terminates the contract for operational reasons, the employee is entitled to severance pay. The amount ranges from 1 month of salary to 9 months of salary depending on how long the employee has worked at the company.

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