Hungary: Operating a Business

Korlatolt felelossegu tarsasag (KFT) is a Private Limited Company

Number of partners: No limitation on the number of partners.
Capital (max/min): Minimum HUF 500,000. Capital can be contributed in cash or in kind.
Shareholders and liability: Liability is limited to the amount contributed.

Reszveny tarsasag (RT) is a Public Limited Company

Number of partners: No limitation on the number of partners. There are two types of RT: closed company limited by shares or ZRT (shares not available to the public) and Public company limited by shares or NYRT (shares listed on the stock exchange for the public).
Capital (max/min): HUF 5 millionfor ZRT and HUF 20 million for NYRT
Shareholders and liability: Liability is limited to the amount contributed.

Kozkereseti tarsasag (KFT) is a general partnership

Number of partners: Minimum two partners.
Capital (max/min): No minimum capital required
Shareholders and liability: Members' liability for the partnership's obligations is joint and unlimited.

Beteti tarsasag (BT) is a limited partnership

Number of partners: No limitation on the number of partners. Two types of partners: active partners (General Partner) and sleeping partners (Limited Partner). There must be at least one of each type.
Capital (max/min): No minimum capital
Shareholders and liability: Unlimited liability for General Partner.

Limited liability for the external partners (Limited Partner).

Business Setup Procedures

The Competent Organisation

The Commercial Register.

For Further Information

Doing Business Website, Consult this to learn about steps for starting a business in Hungary.
Trade Register

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Recovery Procedures

Principle

More information on LawyersHungary website.

Minimum Debt-to-Capital Ratio Triggering Liquidation

More information on LawyersHungary website.

Bankruptcy Laws

Law VI. Of the year 2006 (only in Hungarian).
Criminal Bankruptcy.
Bankruptcy and liquidation procedures.

Reorganization and Rehabilitation Laws

Law VI. Of the year 2006 (only in Hungarian).

Opening Hours

 

• Legal Weekly Duration

40 hours per week

• Maximum Duration

60 hours per week

• Night Hours

Work carried out between 22 hours and 6 hours is classified as night work.

Working Rest Day

A 48 hours rest period is required during any seven day period.

Paid Annual Vacation

The standard number of days of annual leave is 21. The amount of days of holiday will increase according to your age. The older you are the more days of holiday you get. Example: 21 days from age 25, 22 days from age 28, 23 days from age 31, 24 days from age 33, 25 days from age 35, etc.

Retirement Age

20 years in service and minimum retirement age is 62 years old.

Child Labour and Minimum Age For Employment

The law protects children from exploitation in the workplace. Children under 16 are prohibited from working, except under certain conditions, such as temporary work during school vacations for those between 14 and 16. Children may not work night shifts, overtime, or at hard physical labor.

Informal Labour Market

Quite important especially on construction sites and cash related jobs (hairdresser, plumber, etc).

Pay

Minimum Wage

The minimum monthly wage for full-time employees is HUF 200,000 (EUR 542) in 2022.

In case of full-time employees hired for jobs requiring at least secondary school qualification or secondary vocational qualification, the guaranteed gross wage minimum stated for the application of a monthly wage is HUF 260,000 (EUR 735) (Eurostat).

Average Wage

According to the Central Statistical Office, in 2021 the gross average earnings were HUF 425,915.

Other Forms of Pay

• Pay For Overtime

+25% - 50% depending on the overtime

• Pay For Rest Days Worked

According to collective agreements

• Pay For Night Hours

10-25%

• Pay For Overtime at Night

Like overtime

Social Security Costs

The Areas Covered

The Hungarian social insurance system contains the following elements:
- Health service
- Social care
- Family and Child welfare
- Pensions and assistances
- Unemployment assistance
- Education

Contributions

Contributions Paid By the Employer: 13%
Contributions Paid By the Employee: 18.5% (10% pension contribution and 8.5% health care and labour force contribution) without cap. An additional 6.5% health tax is payable on interest income and 14% health tax on capital gains.

Competent Organization

National Tax and Customs Administration of Hungary (NTCA)

Recruitment

Method of Recruitment

Newspaper, headhunters, Internet, fairs.

Recruitment Agencies

Addeco, EastEuroCo Executive Search Group, Telkes Consulting Incorporated.

The Contract

Dispute Settlement

Social Partners

Employer Associations

FIVOSZ - Young Entrepreneurs Association Hungary
MGYOSZ - Confederation of Hungarian Employers and Industrialists

Social Dialogue and Involvement of Social Partners

The law allows unions to conduct their activities without interference, and the Government protects this right. Collective bargaining is protected by law is freely practised. Approximately 40% of the workforce is covered by collective bargaining agreements (almost 3,000 collective bargaining agreements exist). Workers have the right to strike and occasionally exercise this right.

Unionisation Rate

40%

Labour Unions

Cooperation Forum of Unions

Regulation Bodies

Hungarian Labour Inspectorate