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Employ Candidates Compliantly in Hungary

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  1. Overview: Hungary
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. Work permit for hiring expats via PEO
  5. Contractor vs. Employee: which is better?
  6. Expand without a Company Set Up
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Employer of Record (EOR) in Hungary

What Is an Employer of Record?

An Employer of Record is a third-party expert global employment contracted by a client company to provide fully compliant international employment services. This means that the Employer of Record assumes all the core responsibilities of an employer as specified under the applicable laws in a specific country or a set of operations. An Employer of Record is generally responsible for payroll and benefits administration, ensuring that all necessary tax withholding or deductions are made, and meeting other employers’ compliance obligations in a particular country of operations. Employer of Record solution is usually more cost-effective and compliant than setting up a local legal entity or subsidiary overseas.

Global Employer of Record: Key Features and Scope

A Global Employer of Record is an expanded version of an Employer of Record, providing services that extend beyond a single country. As businesses expand internationally and hire employees in different countries, they face complexities related to compliance with local labour laws, tax regulations, and HR practices. A Global EOR offers a comprehensive solution by acting as the legal employer for workers in multiple countries, managing all aspects of employment compliance, payroll, benefits, and statutory requirements across various jurisdictions. This allows the client company to establish a global presence without setting up legal entities or navigating the intricacies of local employment regulations independently.

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What Services Does an Employer of Record (EOR) Provide?

With affordable packages tailored to your needs and budget-friendly rates, Acumen International can offer secure, efficient global HR services to manage Global Payroll, HR & Benefits Administrations, and Immigration Support for businesses that need international talent but don’t have the resources or skills to handle it themselves.

Our full-service management solutions — from legal talent employment to benefits management, from compliance to payroll and taxation — are tailored to each client’s needs.

Acumen International’s unique and integrated approach allows us to offer a comprehensive array of EOR functions, including:

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting


Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

Compliance and legal guidance at every step of the Global Employment Journey. 24/7 local support.

An Employer of Record Can Handle Tax Reporting in Hungary

The Global Employer of Record is a risk-free and compliant tax reporting solution allowing employers to comply with tax obligations in multiple local jurisdictions. The Employer of Record is a strategic alternative to setting up local entities and paying local employment taxes and charges (payroll tax, social security contributions) in multiple countries worldwide. The onboarding of your international employees via EOR engagement takes simple steps; in most cases, it can be achieved within a couple of days, with no local entity setup costs and compliance risks.

Payroll Administration with an Employer of Record (EOR) in Hungary

The Global Employer of Record processes the payroll across your multiple jurisdictions, which includes managing necessary tax withholdings and deductions, mandatory and voluntary benefits administration, expense reimbursements and PTO (maternity, paternity, and sick leaves) entitlements to ensure full compliance with tax laws in Hungary and company regulations. The payment method and cycle will follow the client company’s requirements to comply with Hungary’s legal codes.

Fully Compliant Social Contributions via Employer of Record (EOR) in Hungary

Compliance with payroll and social contributions laws in Hungary is complex and can be affected by changes in the law. The Global Employer of Record ensures 100% compliance as an international employment expert. Some tax issues, such as how to treat options granted to foreign employees, are particularly challenging. As an experienced compliance expert, an Employer of Record understands the ins and outs of payroll and social contributions law, leaving them immune to any non-compliance issues.

Avoid Employment, Tax, and Non-compliance Risks in Hungary

Expanding operations across borders brings numerous opportunities and risks in today’s interconnected global business landscape. One significant challenge faced by organizations operating internationally is the management of global employment risks. These risks encompass potential legal and regulatory complications associated with employment practices, taxation, compliance, etc.

To navigate these complexities effectively, companies often turn to a Global Employer of Record (EOR) for expert assistance. A Global EOR offers comprehensive solutions to mitigate these risks and ensure compliance with local laws and regulations in specific countries.

This table will explore some common global employment risks and how a Global EOR can help address them, focusing specifically on Hungary. By partnering with a Global EOR, businesses can safeguard against potential pitfalls in Hungary and streamline their global expansion efforts while ensuring compliance and minimizing potential liabilities. Let’s delve into the key risks and the corresponding solutions provided by a Global EOR.

Global Employment Risk How a Global EOR Can Help
Permanent Establishment Risk A Global EOR can help mitigate the risk of creating a permanent establishment in Hungary, which can trigger additional tax obligations and regulatory requirements.
Employee Misclassification Risk A Global EOR can ensure that your employees are properly classified under Norwegian law, helping to avoid costly penalties and legal disputes.
Under-taxation Risk A Global EOR can help ensure you pay the correct taxes in Hungary, helping avoid penalties and legal disputes.
HR Compliance Risk A Global EOR can ensure that your HR practices comply with Hungarian law, including employment contracts, benefits, and termination procedures.
Immigration Compliance Risk A Global EOR can ensure that your employees have the necessary work permits and visas to work legally in Hungary.
Intellectual Property Rights Risk A Global EOR can help protect your intellectual property rights in Hungary, including registering trademarks and patents.
Vendor Management & Vetting Risk A Global EOR can help vet and manage vendors, ensuring they comply with local laws and regulations.

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Employer of Record (EOR) in Hungary: Legally Onboard and Payroll Employees via Acumen

Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating your local and international workforce in Hungary on your behalf risk-free and cost-effectively. Our global Employer of Record solution is the perfect choice for businesses looking to reinforce their internal team with the expertise of talented Hungary-based professionals. Suppose you are searching for a reliable way to hire international talent or have already selected an exceptional local candidate to work remotely and comply with Hungarian law. In that case, Acumen’s EOR solution is your ideal choice.

Our Global Employer of Record (EOR) solution can help international companies like yours expand their global reach and engage the brightest global talent for your projects. You can trust Acumen International to help you manage your workforce in Hungary, ensuring full compliance with local employment laws. We can employ local citizens in Hungary, and through our Global Employer of Record, you can get the most out of your expatriate team.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Hungary and 190 countries worldwide.

Reduce risks while expanding your business without establishing your legal entity in Hungary. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

Trust us to handle the global employment and HR side of your workforce management in Hungary so you are sure that none of these nuances is missed and that your employees are employed and payrolled properly and compliantly on your behalf.

8 Scenarios When You Might Need a Global Employer of Record in Hungary

Hungary has emerged as an attractive destination for organizations seeking growth and expansion in the ever-evolving global business landscape. However, venturing into unfamiliar territory brings forth distinctive challenges that demand innovative solutions. When conventional approaches fall short, embracing the expertise of a Global Employer of Record (GEOR) can revolutionize your path to success. Let’s embark on a journey through eight non-conventional scenarios that illustrate a Global EOR’s critical role in Hungary, fostering ingenuity, compliance, and unparalleled support.

Scenario Explanation
1. Unhappy with current employment service provider Global EOR provides an alternative employment solution that offers greater flexibility, scalability, and compliance with local employment laws and regulations.
2. Unsure if you comply with local laws and regulations Global EOR ensures compliance with local labour laws and regulations in Hungary, taking the burden of legal and tax compliance off your shoulders.
3. Looking to improve the quality of employment services Global EOR provides a comprehensive employment solution that includes onboarding, payroll, benefits, and compliance support, allowing you to focus on your core business activities.
4. Can no longer afford to maintain a whole legal operation Global EOR enables you to maintain a presence in Hungary without the costs and complexities of establishing a legal entity, allowing you to focus on business expansion and growth.
5. Temporary project or one that doesn’t require a legal entity Global EOR offers a flexible and cost-effective solution for hiring employees for short-term or project-based work in Hungary, eliminating the need for a long-term commitment.
6. Need to hire a foreign workforce Global EOR enables you to hire a workforce in Hungary without establishing a legal entity, allowing you to expand your business globally.
7. Need a mix of local and foreign employees Global EOR offers a hybrid solution for hiring local and foreign employees, providing the best of both worlds to support your business growth in Hungary.
8. Supporting organization’s employees during restructuring or reorganizing Global EOR provides a seamless and compliant solution for managing employee relations during business transitions such as mergers, acquisitions, or close-downs in Hungary.

Employ your Selected Workforce via Acumen Employer of Record (EOR) in Hungary

As a Global Employer of Record services provider, Acumen International helps businesses legally engage and pay their selected highly skilled professionals in Hungary.

Acumen International is a leader in global employment services with over 20 years of experience and is certified as a Professional Employer Organisation (PEO). Acumen International helps businesses manage their operations across borders through its innovative solutions, including Employer of Record (EOR)

Typically, the employer owns the risk for employment taxes, wage compliance, and employee benefits for employees assigned to work in a foreign country. Acumen International’s Employer of Record (EOR) in Hungary allows employers to outsource these responsibilities while maintaining control over their global workforce. This allows businesses to retain ultimate authority over their workforce while having access to a trusted partner who can support them with payroll, tax, and employee benefits administration. Companies reduce costs by outsourcing payroll and tax administration and simplifying their human resources efforts.

Businesses hiring local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves end employers and service companies representing an international client as a global employment organization.

Acumen’s Global employment services are intended to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new international markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record (EOR) offers an efficient and inexpensive alternative to direct hire in Hungary. Our Employer of Record solution allows companies to operate in Hungary and 190 international markets, where we serve our clients without registering as a local business entity.

Acumen International offers a global PEO and payroll solution to handle all payroll details while ensuring full compliance with Hungary’s in-country labour and taxation laws.

Spotlight on Hungary

Hungary is a country in Central Europe that joined the European Union in 2004. It borders Slovakia, Ukraine, Romania, Serbia, Croatia, Slovenia, and Austria. Hungary has not yet joined the eurozone and maintains its currency.

  • Capital: Budapest.
  • Official language: Hungarian.
  • Population: 9,728,337 (July 2021).
  • Labour force:  5,245,130 (2022), according to World Bank.
  • Local currency: Forint (HUF).
  • Minimum statutory salary: The current minimum wage in Hungary is HUF232,000.00 per month in 2023. It became valid on January 1, 2023.
  • Developing industries include food processing, pharmaceuticals, motor vehicles, information technology, chemicals, metallurgy, machinery, electrical goods, and tourism.
  • Export/import partners: Hungary has strong trading relationships with Germany, Romania, Italy, Slovakia, China, Poland, Austria, Czechia, Italy, and the Netherlands. Hungary exports cars, vehicle parts, packaged medicines, spark-ignition engines, video displays, and broadcasting equipment. Import commodities include integrated circuits and crude petroleum.
  • 13th salary: About 13% of Hungarian employees receive a 13th-month wage. It is not to be confused with the end-of-year bonus based on personal performance and the company’s performance in the given year.

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