Hello everyone, welcome to this blog, and today we'll be focusing on the overseas employer's guide to paying compensation in Hungary. As an overseas employer, it's important to understand the payroll rules of your target country, which will not only help you better manage your employees, but also avoid unnecessary legal risks. In Hungary, there are many aspects to the payment of salaries, including taxes, social insurance, and labor law regulations, so special attention needs to be paid to them. Next, let's take a look at the payment of salaries in Hungary.
Global human resource management platform - to help enterprises go overseas.
1. Salary structure in Hungary.
In Hungary, an employee's compensation typically consists of a base salary and various allowances. The basic salary is the basic remuneration of the employee, while the allowance includes overtime pay, holiday allowance, meal allowance, etc. In addition, Hungarian law stipulates a minimum wage, and employers need to ensure that employees are paid no less than the minimum wage.
2. Taxation and social insurance.
In Hungary, employers are required to pay employees pre-tax wages, and they are required to withhold personal income tax and social insurance contributions. Personal income tax varies depending on the amount of income earned by the employee, while social insurance costs include pensions, medical insurance, and unemployment insurance, among others. In addition, employers are required to pay corporate income tax and other taxes.
3. Salary payment cycle.
In Hungary, the payroll cycle is usually monthly. Employers are required to pay employees on specific days of each month and are required to report employees' earnings to tax authorities and social insurance institutions.
4. Provisions of the Labor Law.
Hungarian labor laws dictate employee working hours, overtime, annual leave, and more, and employers need to strictly follow these regulations. The payment of overtime pay, annual leave allowance, etc., is also required in accordance with the law.
5. Summary. Through the introduction of this blog, I believe you have a more comprehensive understanding of the Hungarian salary payment guidelines for overseas employees. As an overseas employer, it's important to understand and comply with your target country's payroll rules, which will not only help you better manage your employees, but also avoid unnecessary legal risks. Of course, in practice, if you encounter a complicated situation, it is recommended that you consult a professional or a local lawyer for guidance. I hope you find this blog helpful, thanks for reading!