Living and working conditions: Hungary

In Hungary employment agency services may be provided by bodies of the State employment service (administrative bodies of the Budapest and county government district offices performing employment and labour market-related functions) and by authorised private employment agencies. Jobseekers may not be charged for these services. Legal persons, companies without legal personality and sole traders with a registered office in Hungary may engage in private employment agency activities provided they are registered with the employment office with competence over the locality of their registered office. As of 31 December 2022, there were 912 registered recruitment agencies (by combined number of headquarters and establishments), more than half of which were located in the Central Hungary region.

Anybody – not only registered jobseekers – may turn to local government district office employment services or private employment agencies for help.

Information on the service is available on the National Employment Service (Nemzeti Foglalkoztatási Szolgálat, ‘NFSZ’) website. Current vacancies are listed on the Virtual Labour Market Portal (Virtuális Munkaerőpiac Portál, ‘VMP’). Employers can post their job offers on the VMP website. The EURES (European Employment Service) agency system, where information is provided on vacancies in Hungary as well is also accessible from the NFSZ website.

In addition to state and private employment agency services, a number of job portals, recruitment events, advertising brochures, social media sites (LinkedIn, Facebook) and network capital may come in handy for jobseeking.

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Curricula vitae (CVs) must be prepared in Hungarian and, depending on the post, also in English. This broadly corresponds to standards applied to CVs in other European countries, and should generally be prepared electronically, printed or, where the advertisement specifically requires it, manually. Applicants must always attach copies of documents proving that they have the qualifications necessary for the job, as well as copies of language proficiency examination certificates to their application.

The length of the CVs cannot be longer than one or two pages, and must always include the following details:

• personal data and contact details;
• educational attainment (in reverse chronological order);
• training courses, professional qualifications (in reverse chronological order);
• places of work, work experience; IT skills;
• language proficiency, driving licence;
• other relevant skills, competences
• hobbies, leisure time activities.

A cover letter addressed to the organisation advertising the post or the potential employer contains important information not included in the CV. Explain how you found out about the job, what position you are applying for, what skills and abilities you have that are relevant to the job, why you think you are the best candidate for the job, what your goals and plans are, etc. The cover letter should not be longer than one page and – unlike the CV – should always be signed by hand (if submitted as a printed version). It is important that the cover letter and the CV should be mutually consistent, and that their content should respond to the expectations formulated in the vacancy notice or the job description.

Providing references such as details of work experience that you are proud of or feedback from professionals who can provide an objective, but probably positive, opinion of you as a person may also prove useful. Make sure that you request the persons providing references for permission to include their name, telephone number, position and corporate name in your CV.

Employers and recruiters will probably do background checks on applicants, look for their online presence and social media profiles (e.g. Facebook, Instagram, LinkedIn); therefore, attention should be paid to the their quality.

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Definition

This category is not applicable to Hungary.

Eligibility

This category is not applicable to Hungary.

Implementation

This category is not applicable to Hungary.

Living and working conditions

This category is not applicable to Hungary.

Where to find opportunities

This category is not applicable to Hungary.

Funding and support

This category is not applicable to Hungary.

Where to advertise opportunities

This category is not applicable to Hungary.

Funding and support

This category is not applicable to Hungary.

Legal framework & Description of schemes

Any person enrolled as a student in a VET institution operating in Hungary, or any person enrolled for a training course in an adult education institution (hereinafter referred to as ‘students’) may participate in vocational education provided by the dual training place within the framework of an apprenticeship contract.

The apprenticeship contract establishes apprenticeship between students and places providing dual training. Under an apprenticeship contract, students accept the terms and conditions of participating in vocational education and training and undertake to participate in vocational education and training under the guidance places providing dual training, and places providing dual training undertake to employ students in the vocational education and training programme, and provide support laid down in the Act on Vocational Education and Training for students.

Students are entitled to receive a salary for the work performed under an apprenticeship contract. The relevant legislation sets monthly salaries as a percentage of the mandatory lowest amount of the monthly salary applicable on the first day of the first month of the current year. Students are entitled to receive, in addition to a salary, the remuneration in July and August after the end of the academic year similar to the remuneration provided for any employee in a position filled in the possession of the qualification needed for the trade chosen by the student at a place providing dual training.

The Labour Code (hereinafter: the LC) shall apply to vocational training employment relationships subject to the derogations set out in the Vocational Training and Education Act. Based on that, students are have the same rights as those to which employees are entitled under the Labour Code, in particular, interest representation, occupational health protection, job safety, remuneration and rest periods. However, students also have employee obligations, which are specific to them in certain cases. Student performance is assessed and marked by both places providing dual training and VET institutions.

In addition the VET institutions, economic chambers (www.mkik.hu and www.nak.hu) also play an important role in supporting the organisation of vocational education at the dual training place: following an aptitude test, the competent chamber, acting as the designated authority, registers the dual training places, then checks their activities related to vocational education and training.

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Eligibility

no information available

Living and working conditions

no information available

Where to find opportunities

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Funding and support

no information available

Where to advertise opportunities

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Funding and support

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The free movement of goods is one of the cornerstones of the European Single Market.

The removal of national barriers to the free movement of goods within the EU is one of the principles enshrined in the EU Treaties. From a traditionally protectionist starting point, the countries of the EU have continuously been lifting restrictions to form a ‘common’ or single market. This commitment to create a European trading area without frontiers has led to the creation of more wealth and new jobs, and has globally established the EU as a world trading player alongside the United States and Japan.

Despite Europe’s commitment to breaking down all internal trade barriers, not all sectors of the economy have been harmonised. The European Union decided to regulate at a European level sectors which might impose a higher risk for Europe’s citizens – such as pharmaceuticals or construction products. The majority of products (considered a ‘lower risk’) are subject to the application of the so-called principle of mutual recognition, which means that essentially every product legally manufactured or marketed in one of the Member States can be freely moved and traded within the EU internal market.

Limits to the free movement of goods

The EU Treaty gives Member States the right to set limits to the free movement of goods when there is a specific common interest such as protection of the environment, citizens’ health, or public policy, to name a few. This means for example that if the import of a product is seen by a Member State’s national authorities as a potential threat to public health, public morality or public policy, it can deny or restrict access to its market. Examples of such products are genetically modified food or certain energy drinks.

Even though there are generally no limitations for the purchase of goods in another Member State, as long as they are for personal use, there is a series of European restrictions for specific categories of products, such as alcohol and tobacco.

Free movement of capital

Another essential condition for the functioning of the internal market is the free movement of capital. It is one of the four basic freedoms guaranteed by EU legislation and represents the basis of the integration of European financial markets. Europeans can now manage and invest their money in any EU Member State.

The liberalisation of capital markets has marked a crucial point in the process of economic and monetary integration in the EU. It was the first step towards the establishment of our European Economic and Monetary Union (EMU) and the common currency, the Euro.

Advantage

The principle of the free movement of capital not only increases the efficiency of financial markets within the Union, it also brings a series of advantages to EU citizens. Individuals can carry out a broad number of financial operations within the EU without major restrictions. For instance, individuals with few restrictions can

1. easily open a bank account,
2. buy shares
3. invest, or
4. purchase real estate

in another Member State. EU Companies can invest in, own and manage other European enterprises.

Exceptions

Certain exceptions to this principle apply both within the Member States and with third countries. They are mainly related to taxation, prudential supervision, public policy considerations, money laundering and financial sanctions agreed under the EU Common Foreign and Security Policy.

The European Commission is continuing to work on the completion of the free market for financial services, by implementing new strategies for financial integration in order to make it even easier for citizens and companies to manage their money within the EU.

Real estate agents and brokers, advertising brochures, real estate websites, social media sites provide help in your search for housing whether you wish to buy or rent a property. In 2022, compared with the previous years, the prices of new and used homes increased enormously ; the property market is characterised by a high excess demand. In Budapest, the average price of used homes was HUF 46 million in 2022. Property prices rose faster in Hungary (especially in Budapest) than in other EU Member States. Prices of flats in prefabricated blocks varies between HUF 260 000 and HUF 340 000 per square metre, while those of flats in brick buildings are HUF 400 000 to 570 000 per square metre. In towns and villages outside the capital, however, HUF 100 000 per square metre can buy you a brick detached house. Monthly rent for a small (50 to 70 m²) flat varies between HUF 80 000 and HUF 160 000, overheads excluded.  Social media sites and groups are also good sources of property to let/rent. Tenants are advised to prepare for unforeseen situations such as change of property ownership when they have to find another flat to rent within a short period of time. When searching for and deciding on accommodation, in addition to price considerations, it is important that some background check on the general condition and the location of the flat, the proximity of public transport, as well as the safety of the neighbourhood and the criminal record of neighbours be carried out.

It is always important to find out about common expenses (which include the costs of cleaning, waste collection and maintenance) and public utility charges. Does the dwelling have separate water, gas and electricity meters, as older dwellings may still have flat-rate billing (no separate meters), which is based on an estimate. In any case, Flats should be taken over along with documents specifying the last read position of utility meters, also clarifying the frequency of payment, whether it is based on regular meter reading (monthly/quarterly/half-yearly/yearly notification by phone) or a flat-rate is applied.

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When moving to Hungary, it is a good idea to enquire first about the types of educational institutions located in the area of residence and the surrounding areas, and whether they have any places for the children. It is very important to collect from the old school all the certificates and data required by the new school for enrolment.

The following educational institutions operate in Hungary: nursery schools, primary schools, secondary schools (offering programmes for 4, 6 or 8 school years), colleges and universities. The territorial principle that applies to primary schools and secondary schools offering tuition for 4 school years guarantees places primarily for children living in the catchment area. Any remaining free places are filled by children from outside the area. Admission to eight-year and six-year secondary schools is based exclusively on an entrance examination and so the territorial principle does not apply. As a rule, children do not need to take an exam to enrol in a nursery or primary school. However, an entrance examination is necessary for admission to secondary schools or higher education institutions.

A nursery school or primary school is usually selected on the basis of proximity to one’s home. A secondary school is selected on the basis of suitability to the child’s abilities and future plans. Before applying, it is worth consulting the current secondary school league table, which ranks schools according to their students’ results in school-leaving exams, language exams, competition results and university entrance exams.

Hungary ensures equal treatment for all students who are EU nationals: they are eligible for education grants and other benefits on the same terms as Hungarian students, and as full-time students they are entitled to receive student cards. Instruction is also available in languages other than Hungarian: there are numerous schools for ethnic minorities (which teach national culture and traditions as well as providing tuition in the mother tongue).

Hungary has 1 024 000 households with children of school age. The number of children from these households attending school is around 1 500 000. The total schooling cost per pupil is HUF 15 628. An average family typically spends HUF 30 000 to 40 000 per child at the start of school year. 36% of students were provided with school meals at a discount price and 28% of them received school meals free of charge, in addition, 957 000 students received textbooks free of charge.

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The implementation of the principle of free movement of people, is one of the cornerstones of our European construction, has meant the introduction a series of practical rules to ensure that citizens can travel freely and easily to any Member State of the European Union. Travelling across the EU with one’s car has become a lot less problematic. The European Commission has set a series of common regulations governing the mutual recognition of driving licences, the validity of car insurance, and the possibility of registering your car in a host country.

Your driving licence in the EU

The EU has introduced a harmonised licence model and further minimum requirements for obtaining a licence. This should help to keep unsafe drivers off Europe's roads - wherever they take their driving test.

Since 19 January 2013, all driving licences issued by EU countries have the same look and feel. The licences are printed on a piece of plastic that has the size and shape of a credit card.

Harmonised administrative validity periods for the driving licence document have been introduced which are between 10 and 15 years for motorcycles and passenger cars. This enables the authorities to regularly update the driving licence document with new security features that will make it harder to forge or tamper ­- so unqualified or banned drivers will find it harder to fool the authorities, in their own country or elsewhere in the EU.

The new European driving licence is also protecting vulnerable road users by introducing progressive access for motorbikes and other powered two-wheelers. The "progressive access" system means that riders will need experience with a less powerful bike before they go on to bigger machines. Mopeds will also constitute a separate category called AM.

You must apply for a licence in the country where you usually or regularly live. As a general rule, it is the country where you live for at least 185 days each calendar year because of personal or work-related ties.

If you have personal/work-related ties in 2 or more EU countries, your place of usual residence is the place where you have personal ties, as long as you go back regularly. You don't need to meet this last condition if you are living in an EU country to carry out a task for a fixed period of time.

If you move to another EU country to go to college or university, your place of usual residence doesn't change. However, you can apply for a driving licence in your host country if you can prove you have been studying there for at least 6 months.

Registering your car in the host country

If you move permanently to another EU country and take your car with you, you should register your car and pay car-related taxes in your new country.

There are no common EU rules on vehicle registration and related taxes. Some countries have tax-exemption rules for vehicle registration when moving with the car from one country to another permanently.

To benefit from a tax exemption, you must check the applicable deadlines and conditions in the country you wish to move to.

Check the exact rules and deadlines with the national authorities: https://europa.eu/youreurope/citizens/vehicles/registration/registration-abroad/index_en.htm 

Car Insurance

EU citizens can insure their car in any EU country, as long as the chosen insurance company is licensed by the host national authority to issue the relevant insurance policies. A company based in another Member State is entitled sell a policy for compulsory civil liability only if certain conditions are met. Insurance will be valid throughout the Union, no matter where the accident takes place.

Taxation

Value Added Tax or VAT on motor vehicles is ordinarily paid in the country where the car is purchased, although under certain conditions, VAT is paid in the country of destination.
More information on the rules which apply when a vehicle is acquired in one EU Member State and is intended to be registered in another EU Member State is available on this link https://europa.eu/youreurope/citizens/vehicles/registration/taxes-abroad/index_en.htm.

Hungary is a full member of the Schengen area. Nationals of the European Economic Area or of Switzerland (EU citizens) may enter Hungary with a valid passport or national identity card. Hungary has joined the European Agreement on Regulations governing the Movement of Persons between Member States of the Council of Europe, signed on 13 December 1957 in Paris. Nationals of Member States that are parties to the Agreement may enter Hungary for visits of not more than 3 months on presentation of a valid ordinary passport or an expired passport no more than a year out of date, or with a valid identity card or an expired identity card no more than a year out of date. Family members who are not EU nationals may enter Hungary with a travel document and, in the case of countries for which a visa is required, an entry visa, which may be obtained free of charge in an accelerated procedure. However, non-EU family members holding a residence card issued to a family member who is an EU national are exempt from obtaining a visa. Family members also benefit from preferential residence conditions. EU nationals and family members arriving with them or joining them are entitled to stay in Hungary for 3 months without having to fulfil any special conditions or other formal requirements and without having to register. EU nationals and their family members are entitled to stay for longer than 3 months if they are in active, paid employment or studying, or support themselves and their family members with their own funds, including full health care coverage.

A stay exceeding 3 months must be notified, and the legality of stay must be certified by the relevant document. The relevant authority will issue a registration certificate for the EU national and a residence card valid for a maximum of 5 years for family members who are not EU nationals taking up permanent residence in Hungary. The competent government office then sends the official residential address certificate to the applicant. Subsequent changes in residence must be notified to the document office of the competent local authority.

In Hungary, the Ministry of the Interior, as well as the National Directorate-General for Aliens Policing (previously: the Office of Immigration and Asylum) and its regional directorates are responsible for matters related to residence, except for visa matters which belong to the competence of the Ministry of Foreign Affairs and Trade. Office of Immigration and Asylum The description of the procedures and conditions in Hungarian, English and German, together with the contact details of the regional directorates and their customer service desks, is available on the Directorate-General’s website.

EU nationals and their family members are entitled to permanent residence after residing legally and continuously in Hungary for 5 years, and receive a permanent residence permit accordingly. EU nationals and their family members may be expelled from Hungary only if they have failed to comply with the requirement to leave the territory of Hungary, if they have provided false or misleading information in the absence of the right to enter or reside in the country, or if their stay poses a real, direct and serious threat to a fundamental public interest, such as law and order, public and national security or public health. If the EU citizen or family member develops a health condition endangering public health before the end of a three-month stay in Hungary, he/she may be expelled from the country if he/she does not submit to compulsory treatment; after three months, expulsion may not be initiated for this reason.

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Before arrival in the country, any documents (visas) necessary for family members who are not EU nationals must be issued by the Hungarian consulate. Arrangements must be made in advance for the issuance of a European Health Insurance Card (EHIC) or other forms (e.g. E121), which will be needed for the purpose of applying for a registration certificate or a residence card. If you are not intending to work during a prolonged stay, you will need to provide documentary proof of your financial resources in order to apply for residence documents. If you intend to work in the country, it is advisable to bring documents relating to your qualifications or previous jobs, and to have them translated if requested by the employer. Housing can usually be arranged within the first month, so it is sufficient to reserve temporary accommodation before arriving in the country, as it is easier to arrange permanent accommodation once in Hungary. The purchase or rental of residential property by EU nationals is not subject to any permits or other administrative formalities. In the case of students, admission certificates and reservations for reduced-rate student dormitories or other accommodation need to be made in advance. It is important for families with children to enrol in nursery and other schools in time. Please note that in Hungary, nursery school attendance is compulsory from the age of three. However, exceptions may be made in justified cases at the request of the parent. Admission to schools is subject to prior application and contact with the educational institution. In the event of long-term relocation, provision must also be made for the transport of possessions. A driving licence issued in an EEA Member State is valid until expiry. If the person has moved to Hungary in the meantime, it can be validated through a simple replacement, similar to the procedure applicable to Hungarian nationals. Family members who are not EU nationals are required to replace their driving licence. It must be borne in mind that EU nationals are also entitled to public transport discounts. Hungary recognises disabled parking permits issued in partner EU Member States on a reciprocal basis.

After arriving in the country, the first step towards integration is to officially notify the authorities of your stay and to apply for the residence document at the National Directorate-General for Aliens Policing (which, due to the one-stop shop system, also means obtaining a residence card: as part of the procedure, this card is issued by the Budapest Government Office separately and is sent by post to the applicant). Persons carrying out an economic activity are given a tax number and a social security number (known as the ‘TAJ number’). In the case of employees, these are requested by the employer, while self-employed people or partnerships must arrange for them themselves. Employees must take a medical examination.

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Quality of work and employment - a vital issue, with a strong economic and humanitarian impact

Good working conditions are important for the well-being of European workers. They

• contribute to the physical and psychological welfare of Europeans, and
• contribute to the economic performance of the EU.

From a humanitarian point of view, the quality of working environment has a strong influence on the overall work and life satisfaction of European workers.

From an economic point of view, high-quality job conditions are a driving force of economic growth and a foundation for the competitive position of the European Union. A high level of work satisfaction is an important factor for achieving high productivity of the EU economy.

It is therefore a core issue for the European Union to promote the creation and maintenance of a sustainable and pleasant working environment – one that promotes health and well-being of European employees and creates a good balance between work and non-work time.

Improving working conditions in Europe: an important objective for the European Union.

Ensuring favourable working conditions for European citizens is a priority for the EU. The European Union is therefore working together with national governments to ensure a pleasant and secure workplace environment. Support to Member States is provided through:

• the exchange of experience between different countries and common actions
• the establishment of the minimum requirements on working conditions and health and safety at work, to be applied all over the European Union

Criteria for quality of work and employment

In order to achieve sustainable working conditions, it is important to determine the main characteristics of a favourable working environment and thus the criteria for the quality of working conditions.

The European Foundation for the Improvement of Living and Working Conditions (Eurofound) in Dublin, is an EU agency that provides information, advice and expertise on, as the name implies, living and working conditions. This agency has established several criteria for job and employment quality, which include:

• health and well-being at the workplace – this is a vital criteria, since good working conditions suppose the prevention of health problems at the work place, decreasing the exposure to risk and improving work organisation
• reconciliation of working and non-working life – citizens should be given the chance to find a balance between the time spent at work and at leisure
• skills development – a quality job is one that gives possibilities for training, improvement and career opportunities

The work of Eurofound contributes to the planning and design of better living and working conditions in Europe.

Health and safety at work

The European Commission has undertaken a wide scope of activities to promote a healthy working environment in the EU Member States. Amongst others, it developed a Community Strategy for Health and Safety at Work for the period 2021-2027. This strategy was set up with the help of national authorities, social partners and NGOs. It addresses the changing needs in worker’s protection brought by the digital and green transitions, new forms of work and the COVID-19 pandemic. At the same time, the framework will continue to address traditional occupational safety and health risks, such as risks of accidents at work or exposure to hazardous chemicals.

The Community policy on health and safety at work aims at a long-lasting improvement of well-being of EU workers. It takes into account the physical, moral and social dimensions of working conditions, as well as the new challenges brought up by the enlargement of the European Union towards countries from Central and Eastern Europe. The introduction of EU standards for health and safety at the workplace, has contributed a lot to the improvement of the situation of workers in these countries.

Improving working conditions by setting minimum requirements common to all EU countries

Improving living and working conditions in the EU Member States depends largely on the establishment of common labour standards. EU labour laws and regulations have set the minimum requirements for a sustainable working environment and are now applied in all Member States. The improvement of these standards has strengthened workers’ rights and is one of the main achievements of the EU’s social policy.

The importance of transparency and mutual recognition of diplomas as a crucial complement to the free movement of workers

The possibility of obtaining recognition of one’s qualifications and competences can play a vital role in the decision to take up work in another EU country. It is therefore necessary to develop a European system that will guarantee the mutual acceptance of professional competences in different Member States. Only such a system will ensure that a lack of recognition of professional qualifications will not become an obstacle to workers’ mobility within the EU.

Main principles for the recognition of professional qualifications in the EU

As a basic principle, any EU citizen should be able to freely practice their profession in any Member State. Unfortunately the practical implementation of this principle is often hindered by national requirements for access to certain professions in the host country.

For the purpose of overcoming these differences, the EU has set up a system for the recognition of professional qualifications. Within the terms of this system, a distinction is made between regulated professions (professions for which certain qualifications are legally required) and professions that are not legally regulated in the host Member State.

Steps towards a transparency of qualifications in Europe

The European Union has taken important steps towards the objective of achieving transparency of qualifications in Europe:

• An increased co-operation in vocational education and training, with the intention to combine all instruments for transparency of certificates and diplomas, in one single, user-friendly tool. This includes, for example, the European CV or Europass Trainings.
• The development of concrete actions in the field of recognition and quality in vocational education and training.

Going beyond the differences in education and training systems throughout the EU

Education and training systems in the EU Member States still show substantial differences. The last enlargements of the EU, with different educational traditions, have further increased this diversity. This calls for a need to set up common rules to guarantee recognition of competences.

In order to overcome this diversity of national qualification standards, educational methods and training structures, the European Commission has put forward a series of instruments, aimed at ensuring better transparency and recognition of qualifications both for academic and professional purposes.

1. The European Qualifications Framework

The European Qualifications Framework is a key priority for the European Commission in the process of recognition of professional competences. The main objective of the framework is to create links between the different national qualification systems and guarantee a smooth transfer and recognition of diplomas.

2. The National Academic Recognition Information Centres (NARICs)

A network of National Academic Recognition Information Centres was established in 1984 at the initiative of the European Commission. The NARICs provide advice on the academic recognition of periods of study abroad. Located in all EU Member States as well as in the countries of the European Economic Area, NARICs play a vital role the process of recognition of qualifications in the EU.

3. The European Credit Transfer System (ECTS)

The European Credit Transfer System aims at facilitating the recognition of periods of study abroad. Introduced in 1989, it functions by describing an education programme and attaching credits to its components. It is a key complement to the highly acclaimed student mobility programme Erasmus.

4. Europass

Europass is an instrument for ensuring the transparency of professional skills. It is composed of five standardised documents

• a CV (Curriculum Vitae),
• a cover letter editor,
• certificate supplements,
• diploma supplements, and
• a Europass-Mobility document.

The Europass system makes skills and qualifications clearly and easily understood in the different parts of Europe. In every country of the European Union and the European Economic Area, national Europass centres have been established as the primary contact points for people seeking for information about the Europass system.

The parties in an employment relationship are the employer and the employee. As a rule, anyone aged 16 or over may take up employment. Unless agreed otherwise, employment is established for full-time work, for an indefinite period. Hungarian law recognises atypical forms of employment as well. Examples include staff leasing, temporary employment, part-time employment, fixed-term employment and remote work, as well as independent, home-based piecework and foster parenting. School cooperative members who are full-time students no longer perform their tasks in an employment relationship, but rather as part of an assignment governed by civil law. However, the remuneration paid for the tasks performed cannot be lower than the lowest applicable minimum wage. In vocational training, the practical training of the student is conducted on the basis of a written student contract concluded between the student and the business organisation for the purpose of practical training at the business organisation. According to the student contract, the business organisation pays a cash allowance to the student. This, together with the contributions, is recoverable by the organisation.

Remote or distance work is employment where the employee does not work within a work organisation, at the registered office or place of business of the employer, but typically at their own place of residence, using a computer to perform the work and send it to the employer.

A staff leasing agency signs an employment contract with the employee, while it enters into an outsourcing agreement or work contract with the actual employer. However, there is no contractual relationship between the employer and the worker.

There is also a simplified employment scheme. Accordingly, the simplified employment scheme can be applied when movie extras and temporary workers in the agricultural sector and tourism are hired for definite duration. In this case, simplification means that only the most important rules of labour law need to be applied. It also involves less paperwork to register and de-register.

In the workfare scheme, people who are eligible for rehabilitative care or are registered as jobseekers, and people who have applied for refugee or asylum status can be employed for 4, 6 or 8 working hours per day, for a period of between 1 to 11 months. The jobseeker may be excluded because of the conditions set out in the workfare scheme. Bodies classified as public service employers – public authorities, local governments, NGOs and religious organisations, etc. – sign a contract with the relevant public employment service body, agreeing to employ public employees for carrying out statutory and optional local government tasks, local or community tasks or tasks stipulated by government pursuing public objectives. Such activities may not be for profit or involve positions for which a public servant, public official or government official status is obligatory. In the period from December to February 2023, the average number of people in employment was 4 690 000, i.e. 25 000 more than a year earlier. The number of those employed in the primary labour market and abroad grew by 12 000 and 13 000, respectively; by contrast, the number of those employed in the public service fell by 10 000. The employment rate in the 15–64 age group rose to 74.3%. There was practically no change in the number of male employees standing at 2 420 000, translating into a 78.6% employment rate. The number of female employees was 2 155 000, with the rate of employment growing by 0.6 percentage point to 70.0%.Work as an au pair involves helping (by performing household tasks) individuals (families) look after, bring up and care for children in exchange for an allowance, board and lodging, help with language learning etc., but not as a regulated profession or in a separate legal relationship.

The Labour Code must be applied at performing arts organisations, taking into account the derogations set out in the Act on the specific employment rules applicable to artistic professions (e.g. that unless agreed otherwise, a fixed-term contract lasts until the end of the season).

Seasonal work

Overview

In 2022, there was a monthly average of 35 500 seasonal workers in agricultural. While agricultural migrant workers were much more frequent in the 1990s, their number has significantly decreased. There are about 30 000 to 50 000 migrant workers working in Hungary between May and October, the majority of whom arrive from Romania and Ukraine with a smaller percentage from Serbia. The need for seasonal workers is currently less than it was a couple of decades ago. In Hungary, fruit and vegetable production has declined to the point where much less manual labour is now needed.

Seasonal work as part of simplified employment

The simplified employment scheme has been an atypical employment scheme used in a number of sectors, for agricultural seasonal work, and in tourism seasonal work since 2010. It has a number of advantages, the reports are easy to file, and the tax burden is advantageous. The rules of application were made more flexible starting from 17 April 2020:

For temporary and seasonal work in the agricultural, forestry, livestock, fishery and hunting sectors, the annual period provided for in the Act on the Simplified Employment Scheme is 120 days.Act on the Simplified Employment Scheme (Act LXXV/2010) https://ec.europa.eu/migrant-integration/librarydoc/act-lxxv-of-2010-on-simplified-employment

(in Hungarian: EFO) covers the following:

• seasonal work in the agricultural and tourism sectors,
• odd jobs,
• employment of movie extras.

Employment status starts upon notification

The legal relationship between the parties starts upon the submission of the report to the tax authority by the employer. Employers can fulfil their registration and change notification obligations in the following ways:

• by electronically submitting form 20T1042E (using the one-stop client/company gateway)
• by calling the national customer service hotline (hotline: 185)
• by using the EFO app on a smartphone or tablet.

Tax liability

Government Decree No 197/2022 of 4 June 2022 provides that, starting in July 2022, employees working under the simplified employment scheme are subject to a higher, double, daily rate for most forms of employment. The total amount of taxes payable by the employer, if the above conditions are met, per employee and each calendar day of the employment relationship:

• HUF 1 000 for seasonal agricultural work,
• HUF 1 000 for seasonal tourism work,
• HUF 2 000 for odd jobs,
• HUF 6 000 for odd jobs as a movie extra.

A further related change is that the daily net income of a film industry extra from casual work is capped at 12% of the minimum wage, at HUF 24 000 instead of the previous HUF 18 000. Finally, pension entitlement for workers in simplified employment will practically double in view of the higher daily tax rate.

The employer has to pay only HUF 500 in taxes per day for each employee – or nothing for foreign seasonal workers, if the given worker provides proof of social insurance in the country of origin.

The rules of the Labour Code (the Mt.) and the provisions of the separate legislation pertaining to compulsory minimum wage and the guaranteed minimum wage shall apply to employment relationships established for the purposes of simplified employment (EFO).

On the basis of an employment relationship established under the Efo. Act for the purpose of simplified employment at least 85 % of the compulsory minimum wage or 87 % of the guaranteed minimum wage is due as basic or piecework wage, in accordance with the specified conditions.

From 1 January 2023, the mandatory minimum wage will increase to HUF 232,000 and the guaranteed minimum wage (minimum wage for graduates) to HUF 296 000.

Natural persons are not subject to assessing an income and submitting a tax return if their income from simplified employment does not exceed the production of the number of the calendar days of simplified employment multiplied by the amount of the statutory minimum wage (minimum wage) in force on the first day of the tax year or, if they are eligible for at least 87% of the guaranteed minimum wage as a basic wage or piecework wage, 130 % of amount of the guaranteed minimum wage set as daily wage.

This is the ‘exempted amount’. On the income received in excess of the exempted amount, the employee will be subject to personal income tax, which must be declared and paid in a personal income tax return.

Government  Decree No 197/2022. (VI. 4.)  also raised public dues on occasional work with effect from 1 July 2022. It applies to casual workers and relationships under the Simplified Employment Act established on or after 1 July 2022.

In the case of Section 7 (2) a) of the Efo Act, for each calendar day of employment, 0.5 per cent of the minimum wage applicable on the first day of the month per employee, rounded to one hundred forints (i.e. HUF 1 200 per person per day for calendar days in the case of employment established after 1 January 2023) for agricultural and tourism seasonal work as defined in Section 2 (1) and (2).

In the case of Section 7 (2) (b) of the Efo Act, the minimum wage for each calendar day of employment is 1 percent of the minimum wage applicable on the first day of the month per employee, rounded up to HUF 100 (i.e. HUF 2 300 per person per day from 1 January 2023) in the case of casual work as defined in Section 2 (3) of the Efo Act.

If a movie extra as defined in Section 2(8) of the Efo Act is employed under the simplified employment scheme for performing casual work, the rate of 3 percent of the minimum wage per employee per calendar day shall be rounded up to HUF 100 (from 1 July 2022 this will be HUF 7 000/person/day!), with the rate being rounded up to HUF 100. The allowance for movie extras will also be linked to the minimum wage from 1 July 2022. This is equivalent to 12 % of the minimum wage rounded to the nearest HUF 100. This will increase to HUF 27 800 from 2023.

The pension fund linked to casual employment will also increase in line with the amount of public dues:

Notwithstanding Section 10 (2) of the Efo tv., the calculation basis for the pension benefit is

• 1.4 percent of the minimum wage applicable on the first day of the month for the payment of public dues for seasonal agricultural and tourist work (previously fixed at HUF 1 370/day, from 1 January 2023 it will be HUF 3 248/day).
• 2.8 percent of the minimum wage applicable on the first day of the month for the payment of public dues under the casual work and movie extra statute, with the benefit base being rounded up to HUF 100 (the benefit base will be HUF 6 496/day from 1 July 2022, compared with the previously fixed HUF 2 740/day).

Raised public dues will be payable for the first time in the case of employment relationships within the meaning of the Efo Act arising in the month of January 2023.

The minimum hourly rate to be paid in 2023 in the case of an employment relationship established for the purpose of simplified employment shall be:

1. at least 85 % of the compulsory minimum wage, i.e. HUF 1 134/hour,
2. 87% of the guaranteed minimum wage for a skilled job, i.e. HUF 1 483/hour.

Daily exempt amount (below which no PIT is payable):

• In the case of unskilled workers: HUF 13 871
• for jobs requiring secondary education/qualifications: HUF 17 719

The maximum daily wage that can be paid in 2023: HUF 21 340/day/person.

The range of benefits that can be provided to seasonal workers is also limited: they are entitled only to pension, accident and healthcare services, and a job-seeker benefit but are not entitled to sick leave, maternity leave, or unpaid leave.

Under the current employment scheme, non-EU citizens may only be employed for seasonal agricultural work.

Warnings

• Undeclared work is widespread in agriculture.
• A knowledge of Hungarian is essential.

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Employment is always established by means of an employment contract. Employment contracts must be set out in writing. It is the employer's obligation to ensure that the contract is set out in writing. In the case of the simplified employment scheme, subject to meeting the employer’s registration obligation, the legal relationship does not need to be set out in writing, unless the parties enter into the relationship using a template employment contract.

Compulsory contents of the employment contract: agreement on

• the job description,
• the place of work (if not stipulated, the place where the employee usually works),
• and the basic salary.

Within 15 days from the start of employment at the latest, the employer must inform the employee of the daily working hours, other elements relating to pay, the date of salary payment, the method of calculating and scheduling annual paid leave, rules for determining the notice period applicable to the employee and the employer, and the person exercising employer’s rights, unless the period of employment is less than one month or the working hours are less than eight hours a week.

The employer and employee may only amend the employment contract in writing and by mutual consent. The law requires employers to propose an amendment to the employment contract when the employee returns from voluntary military service, maternity leave or unpaid leave taken for the purpose of caring for children or relatives. In this case, the amendment must be based on at least the annual average salary increase of employees doing the same work as the returning employee or, if no such employees exist, the average pay rise actually implemented by the employer. Parents returning from parental leave can unilaterally request in writing that their daily working hours be 20 hours per week. Civil and public servants, public prosecutors, professional personnel of armed forces and judicial employees have this right until their child reaches the age of three, whereas for employees with three or more children the right is extended until the child reaches the age of five. The employer is obliged to modify the employment contract or the position accordingly.

Other employment relationships are government service relationships and civil service relationships (persons holding such relationships are civil servants and civil servants), which are established by appointment. Government officials are persons working in a central state administration body or its regional or local units, and persons employed by the Police, the National Tax and Customs Administration (NAV), as well as those who are working in the field of law enforcement and disaster response. Public servants are persons employed by local government or a number of other institutions (the Hungarian Competition Authority, the Hungarian Academy of Sciences, Office of the President of the Republic, National Election Office, etc.) They are subject to certain conditions, such as having a clean criminal record and legal capacity and, in the case of government officials, a university degree or, exceptionally, a secondary school qualification.

Under the Hungarian Civil Code, the parties may enter into outsourcing agreements or contracts for work. As a general rule, however, the choice of the type of contract establishing the basis for work may not limit or undermine the employee’s lawful interests (bogus contracts are punishable by law).

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As a general rule, employment may be entered into after reaching the age of 16. However, with the exception of employment in the workfare scheme, people over the age of 15 engaged in full-time studies may be employed during school holidays, and people under the age of 16 may be employed in cultural, artistic, sporting or advertising activities with the permission of the public guardian authority.

A person younger than 18 is classified as a young worker and is subject to different rules. The consent of the legal guardian is required to validate any legal statement by a young worker or by a worker with partially restricted legal capacity in respect of the content of the job, as regards the conclusion, amendment or termination of the work contract or the obligations undertaken in it. Similarly, different rules apply in many cases to female employees, and especially expectant and breastfeeding mothers; such rules are mandatory in all cases.

As a general rule, employees may not be employed in jobs that may adversely affect them due to their physical constitution, health condition or development.

Expectant mothers must be temporarily transferred to a line of work that is suited to their condition in terms of health, from the time pregnancy is confirmed until the child reaches the age of one, or the working conditions must be changed accordingly in the existing line of work. The consent of the employee is required to be assigned to a new line of work.

Young workers, expectant mothers from the date of confirmed pregnancy to the third birthday of the child, single parents until the third birthday of the child and workers working under conditions which are hazardous to human health may not be employed for night work. These workers may not be required to perform extraordinary work or stand-by duty either, and the weekly days of rest must not be scheduled unevenly even with their consent.

Disabled people may obtain special accredited qualifications, depending on their disability (e.g. confectioner training for the hearing impaired). Those employing at least 30 people with disabilities or a number accounting for more than 25% of their staff are entitled to an individual employers allowance or workplace conversion grant. On average, the state provides support to the employers of some 30 000 employees with disabilities each year.

In Hungary, refugees and foreign national beneficiaries of subsidiary protection status are entitled to take up employment without restrictions. As a rule, foreigners are allowed to take up employment with a work permit, but there are several exceptions. In employment, they must be treated equally in all respects, including remuneration, work safety, and trade union rights. To employ these groups, local authorities must adopt a local equal opportunities plan.

Legal action may be taken to enforce employment rights, but a mediation procedure is also available or the matter may be referred to the Equal Treatment Authority or to the Commissioner for Fundamental Rights.

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Persons starting or terminating activity as a sole trader may notify the registration body either electronically via the client portal, using the form provided, or in person at the metropolitan or county district office (council one-stop-shop [Kormányablak]). The application must indicate the sole trader’s main personal data, the intended business and the main site or branch(es) where the business will operate from (places of commerce, manufacture or service), include documentation proving that there are no grounds for disqualification (e.g. certificate of good conduct), and provide any further data needed for notification to the National Tax and Customs Authority. A person may hold only one trading licence, which can be used to conduct several types of business and maintain several establishments and branches (places of commerce, manufacture or service). Sole traders have unlimited liability in respect of their entire assets for obligations arising from their operations. In addition to Hungarian nationals, EU and EEA citizens and people with equivalent legal status, people with immigrant or settled resident status, holders of a residence permit issued for the purpose of employment, family reunification or study and stateless people and other people granted admission who have been issued with a residence permit for humanitarian reasons are also authorised to pursue a business activity. A company may be a general unlimited partnership or a limited partnership without legal personality, or a limited liability company, a joint-stock company or a joint venture as a legal entity.

The first step in setting up a business organisation is to sign the articles of association or adopt the founding administrative provisions in the case of a joint-stock company, or approve the act of foundation in the case of a one-person business organisation. The law requires a compulsory minimum level of initial capital/shareholders' equity for the following company forms: HUF 3 million for a limited liability company, HUF 5 million for a private limited company and HUF 20 million for a public limited company. For the purpose of registering and publishing the establishment of a company, notification must be sent to the relevant court of registration that keeps the records. The procedure is conducted electronically. The company information service of the Ministry of Justice (Igazságügyi Minisztérium) provides free access to up-to-date basic information on firms (subscribed capital, registered office, scope of activity, representative) based on name or tax number.

Self-employment in Hungary is not limited to sole traders, but includes all economic activities that may be conducted independently pursuant to legislation, where the person concerned is obliged to provide for their own health insurance and pension insurance cover. This includes lawyers, European lawyers, notaries, independent patent lawyers, independent court bailiffs, private pharmacists, veterinarians authorised to carry out veterinary service activities, community caretakers, private social service providers, etc.

Special funds and support are available for small and medium-sized enterprises.

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In Hungary there is a compulsory minimum wage, the amount of which is determined by the government on an annual basis. From 1 January 2023, the minimum wage will be HUF 232 000, for monthly wages, HUF 53 340 for weekly wages, HUF 10 670 for daily wages and HUF 1 334 for hourly wages. The guaranteed minimum wage for those employed in jobs requiring at least secondary level qualifications or vocational training is HUF 296 400. For people working under the simplified employment scheme the amount of daily public dues is HUF 1 160 for agricultural seasonal work and for seasonal work in tourism, HUF 2 320 for casual work, and HUF 6 960 for movie extras. Full-time workers employed under the public work scheme earned HUF 116 000 per month if they did not have vocational qualifications and HUF 148 200 per month if they did. In 2022, the average gross salary was HUF 515 766 (net: HUF 342 984), which is 17.5% higher than the average salary in 2021.

Employees are entitled to receive from the employer the salary laid down in the employment contract, which must be adhered to. The salary may be fixed as a time-based rate or on the basis of output, or a combination of the two. Employees must be paid for additional hours worked on top of the salary for normal working hours. The salary due to the employee must be entered in the accounts and paid out in a single payment monthly in arrears, in forint, in cash or through bank transfer. However, the employer and employee may agree on different arrangements. Employees must be given a written, detailed salary slip (electronic statements are also acceptable), and deductions may be made from the salary only pursuant to the legal provisions, an enforceable decision or the employee’s consent. The payslip must show the employee's gross pay, the amount deducted in tax and social security contributions, and the net amount of salary paid. In certain cases, employers may even pay fringe benefits to their employees (e.g. contributions for meal, commuting to work, travel and other expenses under the ‘cafeteria’ (fringe benefits) scheme). Employers issue employees with a tax certificate of payments and deductions required for their tax returns.

Employers withhold the following contributions from private individuals’ gross income and pay them to NAV (National Tax and Customs Authority):

social security contribution (18.5%):

- and personal income tax (15 %), as of 1 January 2022. However, starting on 1 January 2022, Hungary will exempt taxpayers aged 25 or younger from paying personal income tax.

Deductions incumbent upon the employer:

- 13% welfare contribution tax,

- rehabilitation contribution (employers with more than 25 staff have to pay it annually in the amount of nine times the minimum wage, if the average number of people with disabilities they employ is less than 5% of the average number of staff).

The same rates of contribution apply to foreign employers. Payment is made monthly by the foreign employer or its representative or, in the absence thereof, by the employee, to the National Tax and Customs Administration’s bank account designated for this purpose.

For certain categories of employees, the employer is entitled to a reduction of the 13% social contribution tax.

Mothers are exempted from the payment of personal income tax (PIT) until the end of their lives if they have raised, are raising, or, at any time after 1 January 2019, will raise four or more children. Artists, athletes and coaches may opt for the preferential tax type ‘simplified public dues contribution’. Taxpayers may choose the simplified contribution to public revenues to pay tax on income only if it was paid to them in HUF and did not exceed the legally imposed cap of HUF 60 million. There is a further condition regarding this cap, in that the income must be equal to at least 12 times the minimum wage. If the persons concerned have an annual income of at least 12 times the minimum wage taxed in accordance with the ordinary rules, on any amount in excess of that the employer pays a contribution of only 13% and the taxpayer pays only 15% tax on the gross salary. In addition to personal income tax, the income earned by non-resident performers and foreign crew members involved in the production of films from 1 January 2019 is subject to a 13% social contribution tax. Social contribution tax is payable until the income earned in the year in question reaches twenty-four times the minimum wage.

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As regards the concept of working time, the period from the beginning to the end of the period prescribed for the performance of work, including the duration of the preparatory and final work relating to the work. Apart from work of a stand-by nature, work breaks and the duration of a journey from home to work and return shall not be regarded as working time. General full-time employment means eight-hour workdays. This may be increased to a maximum of 12 hours for stand-by workers or if the worker is a relative of the owner. The job is of a stand-by nature if the employee is at the employer’s disposal for at least one third of the normal working hours without performing any work or there is significantly less work involved for the employee than in normal circumstances.

The employee’s daily or weekly working hours may not exceed twelve or forty-eight hours, respectively. For stand-by jobs, the daily or weekly working hours may not exceed 24 or 72 hours, respectively. The full period of on-call duty must be considered working time if actual working time cannot be measured. The limits on working hours, the work regime and the rules governing the arrangement of working time are established by the collective bargaining agreement or, in the absence thereof, by the employer. The work regime may follow a general pattern (5 days per week from Monday to Friday), or it may be undefined (the employee has the right to distribute the weekly working hours; in this case it does not affect the undefined nature of the work if the employee may perform some of their work tasks at a certain time or period of time due to their special characteristics). In order to protect employees, if uneven working hours are applied, the law specifies the minimum and maximum period of daily working hours. Accordingly, daily working hours may not be less than four hours. The employer’s operations may be uninterrupted (maximum six-hour break a day), shift work (operating at least 80 hours per week) or seasonal (related to a specific season in the year).

The employer may also specify the hours to be worked by the employee within a specific time frame. As a general rule, this period of time may be no longer than 4 months or 6 months in the case of uninterrupted, shift-work, stand-by work and seasonal operations or 1 year if provided for in a collective agreement, where justified for technical or organisational reasons. A maximum 250 hours overtime may be ordered per calendar year. Subject to a written agreement between the employee and the employer, a further additional 150 working hours may be required (voluntary overtime). Employees may cancel the agreement as of the end of the calendar year.

Sunday is not classed as a working day. A 50% supplement is payable for Sunday work. However, Sunday work may form part of normal working hours in certain cases (e.g. where the nature of the business normally involves Sunday operation, seasonal work, work performed without interruption, or work abroad).

Work carried out between 10 p.m. and 6 a.m. is classified as night work.

Employees may not be required to work and employers are not obliged to provide work during rest periods. Rest periods:

- breaks,

- daily rest periods,

- weekly rest day (or weekly rest period).

Breaks during the working day are the shortest type of rest period. They are to allow time to eat and rest during the working day. A 20-minute break may be taken during the day, if the daily working time is more than six hours. Except for stand-by work, the break does not count as working time.

Employees must be allowed at least 11 hours of rest between completing 1 day’s work and starting the next day’s work. If an employer grants eight hours as daily rest period, the successive daily rest periods must be at least 22 hours. Travel time is not included in this period.

Employees are entitled to 2 rest days a week. Even if an employee may be required to work on Sundays as normal working hours, it must be ensured that the employee has at least 1 rest day a month that is a Sunday. Instead of the weekly rest day, a weekly rest period may be granted, which is 48 hours without interruption and, once a month, must be scheduled to include a Sunday.

The Labour Code provides for working time reductions for certain employees, such as trade union officers, workers’ council members, employees pursuing primary education studies, and breastfeeding women. If required by law, for the period of working time reductions, the employees receive absence pay (which consists of the base salary, the flat-rate supplement, the piece rate and the wage supplement calculated on the basis of the average of 6 months). In the case of employees on monthly salaries, the amount of the absence pay varies according to the number of workdays in the month under the general employment rules.

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Employees are entitled to leave in each calendar year worked, based on how long they have been working. Part-time employees and pensioners in employment are also entitled to leave. Leave comprises basic and supplementary leave. The standard length of basic leave is 20 working days. Employees are entitled to supplementary leave depending on their age. Employees are entitled to longer supplementary leave in the year in which they reach a specific age. Length of supplementary leave:

- 1 working day from the age of 25,

- 2 working days from the age of 28,

- 3 working days from the age of 31,

- 1 additional working day every 2 years up to the age of 45,

- 10 working days from the age of 45.

In addition to the above, employees are entitled to additional supplementary leave in certain cases. The Labour Code specifies the following types of supplementary leave: for young workers, workers bringing up a child under 16 years of age, workers working underground on a permanent basis, workers spending at least three hours a day in a workplace exposed to ionising radiation, fathers for the birth of a child, disabled workers, people entitled to disability benefits or benefits for the blind.

If employment starts after the beginning or ends before the end of a year, the leave days due are calculated on a pro rata basis, except for the 5 days of supplementary leave granted to fathers for the birth of their child, which can be used in its entirety, irrespective of the start or end date of employment.

The employer is obliged to grant seven days of annual leave at a time requested by the employee, taken in two parts at the most, and the employee must notify the employer 15 days before going on leave. Once per calendar year, employees must be allowed to take at least 14 consecutive days of leave when they are exempt from the obligation to work or to be available for work. Employees must be notified that the leave is granted no later than 15 days before the start of the leave. The age-based supplementary leave may be granted until the end of the following year on the basis of the agreement concluded by the parties for the calendar year. The employer may interrupt the employee’s leave for a substantial reason that directly affects its operation or because of some exceptionally important economic interest, but must provide compensation for any costs and losses incurred.

Mothers are entitled to 24 consecutive weeks of maternity leave, of which two weeks must be taken; this counts as working time. Employees are entitled to unpaid leave: (a) until the child reaches the age of three, for the purpose of child care, including managers; (b) for the period during which they are in receipt of child care benefit or child allowance, up to the child’s 10th birthday; (c) to care in person for a relative requiring permanent care, for up to 2 years; (d) for the duration of voluntary military reserve service.

If unable to work, employees may take 15 days of sick leave per calendar year, during which time they receive 70% of their absence pay. If the sick days fall on a public holiday, the absence pay is only due to employees paid on an hourly or output basis.

As a rule, employees do not have to work on legal public holidays, which are: 1 January, 15 March, Good Friday, Easter Monday, 1 May, Whit Monday, 20 August, 23 October, 1 November and 25 and 26 December. A 100% wage supplement is payable for work performed on a legal public holiday, on Easter or Whit Sunday or on a Sunday which would otherwise be a legal public holiday. By 31 October of the year preceding the reference year at the latest, the minister responsible for employment policy may regulate changes in the working time schedule of workers employed in the general work schedule as a result of public holidays. In doing so, the change shall not be declared as a working day on a Sunday and the change shall fall within the same calendar month.

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Employment can be for a definite or indefinite period.

Employment is terminated upon the employee’s death, if the company is wound up without a legal successor, on expiry of the fixed period or if the employer is changed in such a way that at the time of handing over all or part of its activity (its organisation unit, financial and non-financial resources) the employer taking over is not subject to the Labour Code. Employment for an indefinite period may be terminated by mutual agreement between the employer and employee, by a notice of termination, or termination with immediate effect. The probationary period is a maximum of 3 months, or 6 months if provided for by a collective agreement.

Notice must be given in writing and takes effect upon being communicated to the party concerned.  The employer is obliged to give reasons for termination, which must be clearly stated. A fundamental requirement for dismissal is that the statement of reasons must be true, reasonable and clear. In accordance with the case-law of the Court of Justice, failure to fulfil those cumulative conditions leads to the unlawful termination of the legal relationship by dismissal. In the case of employees who are within 5 years of retirement, of mothers and single fathers with children up to the age of three, or of employees receiving rehabilitation allowance or pay, notice on the grounds of employment-related conduct may be given only in severe instances. In the case of persons over the legal age of retirement, it is not necessary to give grounds for a notice of termination.

Employees may terminate an indefinite employment contract at any time without giving grounds. However, in the case of fixed-term employment contracts an explanation must be given . The employer may give notice at any time, except in the following cases where termination is prohibited: pregnancy or the first 6 months of treatment related to human reproduction procedure in the case of female employees, provided that the employer is notified in advance. The employer may withdraw notice of termination in writing within 15 days of the notice being given. Further periods when termination is prohibited are maternity leave, unpaid leave used by either parent for the purpose of looking after a child, and the performance of actual voluntary military reserve service.

The notice period is at least 30 days, which, in the case of dismissal by the employer, may increase to 90 days depending on length of service. The parties may agree on a longer notice period not exceeding 6 months.

Fixed-term employment can be terminated by the employer giving notice during the winding-up or liquidation of the company, for reasons based on the ability of the employee or if the employment relationship becomes impossible to sustain due to unavoidable external reasons.

Severance pay is due if the employer terminates employment by notice or ceases to exist without a legal successor or if the employer taking over the employee is not subject to the Labour Code. A further condition for severance pay is that the employee must have been employed for at least 3 years by the employer. The employee is not entitled to severance pay if they are considered to be retired at the time notice is served or if the reason for termination is employment-related conduct on the part of the employee or the employee’s (non-health-related) abilities.

Both employers and employees may terminate an employment contract with immediate effect if the other party is in wilful or gross breach of any one of their material obligations arising from employment or their conduct makes the continuation of the employment relationship impossible. The right of termination with immediate effect may be exercised within 15 days of becoming aware of the reason on which it is based, but no later than 1 year from the date on which the ground occurred, or, in the event of the commission of a criminal offence, until the limitation period for criminal liability. If the body is entitled to exercise the right to terminate with immediate effect, the date of becoming aware shall be deemed to be the time when the body is informed of the reason for the termination with immediate effect, as the body exercising the employer’s powers.

Special rules apply to public servants, government officials and public officials. Employment is established for an indefinite period by appointment and the acceptance of such appointment. Both the appointment and the acceptance thereof must be in writing. The legal relationship may be terminated by resignation on the part of the employee, by dismissal on the part of the employer, by mutual consent, or with immediate effect by either of the parties during the probationary period. The period of notice for resignation or dismissal is 2 months or at least 60 days in the case of public servants, and may be up to 8 months depending on length of service. In the case of dismissal or if the state administrative body is abolished without a legal successor, severance pay of up to 8 months’ salary is due, increased by half if the person concerned is in the protected age group. Government officials reaching retirement age may apply to continue working. Authorisation to do so is ultimately at the discretion of the government.

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Representative bodies may be set up and operated in order to protect the economic and social rights of employees and to assert their interests more effectively. The two relevant forms of such bodies are trade unions and works councils. Employees are free to join or not join any trade union of their choice. If the number of employees exceeds 15 in the previous 6 months, they elect a works representative and if it exceeds 50, they elect a works council. The employer is obliged to notify the employees if these circumstances arise. If, despite such notification, no representative body is set up, the employer cannot be held responsible. These bodies represent employees in respect of their rights as regards a specific employer.

One of the most important rights of a trade union is to enter into a collective bargaining agreement with the employer. Furthermore, it informs employees of their rights and obligations with regard to financial, social, cultural, living and working conditions, and represents its members in dealings with the employer, state bodies and courts in areas relating to labour relations and employment. It is also entitled to ask the employer for information relating to the employment of personnel, to issue opinions and initiate a consultation. A trade union may also check compliance with rules governing working conditions. Trade union officers are entitled to increased labour law protection against dismissal by the employer.

Trade unions are a social organisation, established on the basis of freedom of association. In order to set up a trade union, at least 10 founding members must declare its incorporation, determine its founding administrative provisions, elect its management and representative bodies and then register the organisation with the court. Some trade unions have low levels of membership (100 people), and others operate with several thousand members (e.g. Magyar Köztisztviselők, Közalkalmazottak és Közszolgálati Dolgozók Szakszervezete – the Trade Union of Hungarian Public Servants and Public Sector Employees).

In addition, chambers have been established by law in many sectors. Membership in some chambers is compulsory, i.e. the given economic activity may not be pursued without membership in the chamber, such as the Hungarian Chamber of Architects (Magyar Építész Kamara), the Hungarian Bar Association (Magyar Ügyvédi Kamara) and the Hungarian Medical Chamber (Magyar Orvosi Kamara). Representative organisations can enforce their interests through the National Economic and Social Council (Nemzeti Gazdasági és Társadalmi Tanács). Since members of the Council include representative organisations and federations, they have extensive rights when it comes to consultations and issuing opinions in dealings with the Parliament and the Government.

Many Hungarian trade unions are members of the European Trade Union Conference (ETUC).

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Employees and representative organisations may initiate labour disputes to assert claims deriving from their employment contract in the case of employees and to assert claims deriving from the Labour Code, a collective bargaining agreement or works agreement in the case of representative organisations. Labour disputes are handled by a special court called the Labour Tribunal. The term of limitation is 3 years in the case of labour rights claims, but for some legal declarations made by the employer (e.g. unilateral modifications of the labour contract) the deadline for filing claims is 30 days. The labour dispute may be preceded by a reconciliation procedure designed to reach an agreement if the parties have agreed on this or if it is included in the collective bargaining agreement.

Before taking legal action, government officials must refer their complaint to the Arbitration Committee of Government Officials for a decision, after which they have 30 days to take the matter to court. Range of cases affected: termination of the legal relationship of government service, written notice regarding the termination of conflict of interests, qualification and performance evaluation findings, resolutions made on disciplinary or compensation issues as well as on paying damages, and unilateral modification of appointment.

Employees have the right to strike in order to enforce their economic and social interests under the Fundamental Law and the relevant 1989 Act, unless the strike is unlawful (e.g. for a purpose which conflicts with the Fundamental Law). Participation in a strike is voluntary; no-one may be forced to participate or to refrain from participating. A call to strike is permissible if the collective labour dispute conciliatory procedure fails to produce results within 7 days, or if no conciliatory procedure is entered into for reasons not attributable to the party calling the strike.

When exercising the right to strike, employers and employees are subject to a cooperation obligation under the law.

Strikes may not be held at judicial bodies, in the Hungarian armed forces, in the police force and at law enforcement agencies, at civilian national security services and at the National Tax and Customs Authority in the case of permanent staff. The right to strike may be exercised at state administration bodies under special rules as set out in an agreement between the government and the relevant trade unions. Similarly, no strike may be held if such action would directly and seriously endanger human life, health, physical integrity or the environment, hinder response to natural disasters or undermine an existing collective agreement.

In the case of employers performing activities with a fundamental effect on the population, such as public road transport, telecommunications, supply of electricity, water and gas and other energy services, there is an important legal safeguard stating that strikes may be carried out only if they do not obstruct the provision of a sufficient level of service. This means that such strikes are lawful only if, in the absence of relevant legislation, the parties agree on the sufficient level of service or, in the absence of such agreement, on the basis of a court decision (within 5 working days). Such a strike may not be started in the absence of such an agreement or court decision. The initiation of a strike or participation in a lawful strike may not be deemed to be a violation of the employment contract and no detrimental action may be taken against the employee as a consequence. This means that although employees participating in a lawful strike are not entitled to remuneration or other benefits, they are entitled to the rights arising from the employment relationship.

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The term Vocational Education and Training refers to practical activities and courses related to a specific occupation or vocation, aimed at preparing participants for their future careers. Vocational training is an essential means to achieve professional recognition and improve chances to get a job. It is therefore vital that vocational training systems in Europe respond to the needs of citizens and the labour market in order to facilitate access to employment.

Vocational education and training has been an essential part of EU policy since the very establishment of the European Community. It is also a crucial element of the so-called EU Lisbon Strategy, which aims at transforming Europe into the world’s most competitive and dynamic knowledge-based society. In 2002 the European Council reaffirmed this vital role, and established yet another ambitious goal – to make European education and training renowned globally by the year 2010 – by championing a number of world-class initiatives, and in particular by strengthening cooperation in the area of vocational training.

On 24 November 2020, the Council of the European Union adopted a Recommendation on vocational education and training for sustainable competitiveness, social fairness and resilience.

The Recommendation defines key principles for ensuring that vocational education and training is agile in that it adapts swiftly to labour market needs and provides quality learning opportunities for young people and adults alike.

It places a strong focus on the increased flexibility of vocational education and training, reinforced opportunities for work-based learning, apprenticeships and improved quality assurance.

The Recommendation also replaces the EQAVET – European Quality Assurance in Vocational Education and Training – Recommendation and includes an updated EQAVET Framework with quality indicators and descriptors. It repeals the former ECVET Recommendation.

To promote these reforms, the Commission supports Centres of Vocational Excellence (CoVEs) which bring together local partners to develop ‘skills ecosystems'. Skills ecosystems will contribute to regional, economic and social development, innovation and smart specialisation strategies.

Erasmus+

Erasmus+ is the EU's programme to support education, training, youth and sport in Europe.

It has an estimated budget of €26.2 billion. This is nearly double the funding compared to its predecessor programme (2014-2020).

The 2021-2027 programme places a strong focus on social inclusion, the green and digital transitions, and promoting young people’s participation in democratic life.

It supports priorities and activities set out in the European Education Area, Digital Education Action Plan and the European Skills Agenda. The programme also

• supports the European Pillar of Social Rights
• implements the EU Youth Strategy 2019-2027
• develops the European dimension in sport

Who can take part? Find out here.

Adult Education and Lifelong Learning in Europe

Lifelong learning is a process that involves all forms of education – formal, informal and non-formal – and lasts from the pre-school period until after retirement. It is meant to enable people to develop and maintain key competencies throughout their life as well as to empower citizens to move freely between jobs, regions and countries. Lifelong learning is also a core element of the previously mentioned Lisbon Strategy, as it is crucial for self-development and the raising of competitiveness and employability. The EU has adopted several instruments for the promotion of adult education in Europe.

A European area of lifelong learning

In order to make lifelong learning a reality in Europe, the European Commission has set itself the objective of creating a European Area of Lifelong Learning. In this context, the Commission focuses on identifying the needs of both learners and the labour market in order to make education more accessible and subsequently create partnerships between public administrations, suppliers of educational services and civil society.

This EU initiative is based on the objective of providing basic skills – by strengthening counselling and information services at a European level, and by recognising all forms of learning, including formal education and informal and non-formal training.

EU organisations promoting vocational education in Europe

With the objective of facilitating cooperation and exchange in the field of vocational training, the EU has set up specialised bodies working in the field of VOCATIONAL TRAINING.

The European Centre for Vocational Training (CEDEFOP / Centre Européen pour le Développement de la Formation Professionnelle) was created in 1975 as a specialised EU agency for the promotion and development of vocational education and training in Europe. Based in Thessaloniki, Greece, it carries out research and analysis on vocational training and disseminates its expertise to various European partners, such as related research institutions, universities or training facilities.

The European Training Foundation was established in 1995 and works in close collaboration with CEDEFOP. Its mission is to support partner countries (from outside the EU) to modernise and develop their systems for vocational training.

Quality of life – on top of the EU social policy agenda

Favourable living conditions depend on a wide range of factors, such as quality healthcare services, education and training opportunities or good transport facilities, just to name a few aspects affecting citizens’ everyday life and work. The European Union has set for itself the aim to constantly improve the quality of life in all its Member States, and to take into account the new challenges of contemporary Europe, such as socially exclude people or an aging population.

Employment in Europe

Improving employment opportunities in Europe is a key priority for the European Commission. With the prospect of tackling the problem of unemployment and increasing the mobility between jobs and regions, a wide variety of initiatives at EU level are being developed and implemented to support the European Employment strategy. These include the European Employment Services network (EURES) and the EU Skills Panorama.

Health and healthcare in the European Union

Health is a cherished value, influencing people’s daily lives and therefore an important priority for all Europeans. A healthy environment is crucial for our individual and professional development, and EU citizens are ever more demanding about health and safety at work and the provision of high quality healthcare services. They require quick and easy access to medical treatment when travelling across the European Union. EU health policies are aimed at responding to these needs.

The European Commission has developed a coordinated approach to health policy, putting into practice a series of initiatives that complement the actions of national public authorities. The Union’s common actions and objectives are included in EU health programmes and strategies.

The current EU4Health Programme (2021-2027) is the EU’s ambitious response to COVID-19. The pandemic has a major impact on patients, medical and healthcare staff, and health systems in Europe. The new EU4Health programme will go beyond crisis response to address healthcare systems’ resilience. 

EU4Health, established by Regulation (EU) 2021/522, will provide funding to eligible entities, health organisations and NGOs from EU countries, or non-EU countries associated to the programme.

With EU4Health, the EU will invest €5.3 billion in current prices in actions with an EU added value, complementing EU countries’ policies and pursuing one or several of EU4Health´s objectives:

1. To improve and foster health in the Union
   • disease prevention & health promotion
   • international health initiatives & cooperation
2. To tackle cross-border health threats
   • prevention, preparedness & response to cross-border health threats
   • complementing national stockpiling of essential crisis-relevant products
   • establishing a reserve of medical, healthcare & support staff 
3. To improve medicinal products, medical devices and crisis-relevant products
   • making medicinal products, medical devices and crisis-relevant products available and affordable
4. To strengthen health systems, their resilience and resource efficiency
   • strengthening health data, digital tools & services, digital transformation of healthcare
   • improving access to healthcare
   • developing and implementing EU health legislation and evidence-based decision making 
   • integrated work among national health systems

Education in the EU

Education in Europe has both deep roots and great diversity. Already in 1976, education ministers decided to set up an information network to better understand educational policies and systems in the then nine-nation European Community. This reflected the principle that the particular character of an educational system in any one Member State ought to be fully respected, while coordinated interaction between education, training and employment systems should be improved. Eurydice, the information network on education in Europe, was formally launched in 1980.

In 1986, attention turned from information exchanges to student exchanges with the launch of the Erasmus programme, now grown into the Erasmus+programme, often cited as one of the most successful initiatives of the EU.

Transport in the EU

Transport was one of the first common policies of the then European Community. Since 1958, when the Treaty of Rome entered into force, the EU’s transport policy has focused on removing border obstacles between Member States, thereby enabling people and goods to move quickly, efficiently and cheaply.

This principle is closely connected to the EU’s central goal of a dynamic economy and cohesive society. The transport sector generates 10% of EU wealth measured by gross domestic product (GDP), equivalent to about one trillion Euros a year. It also provides more than ten million jobs.

The Schengen area

The Schengen Convention, in effect since March 1995, abolished border controls within the area of the signatory States and created a single external frontier, where checks have to be carried out in accordance with a common set of rules.

Today, the Schengen Area encompasses most EU countries, except for Bulgaria, Croatia, Cyprus, Ireland and Romania. However, Bulgaria, Croatia and Romania are currently in the process of joining the Schengen Area and already applying the Schengen acquis to a large extent. Additionally, also the non-EU States Iceland, Norway, Switzerland and Liechtenstein have joined the Schengen Area.

Air transport

The creation of a single European market in air transport has meant lower fares and a wider choice of carriers and services for passengers. The EU has also created a set of rights to ensure air passengers are treated fairly.

Air passenger rights

As an air passenger, you have certain rights when it comes to information about flights and reservations, damage to baggage, delays and cancellations, denied boarding, compensation in the case of accident or difficulties with package holidays. These rights apply to scheduled and chartered flights, both domestic and international, from an EU airport or to an EU airport from one outside the EU, when operated by an EU airline.

Rail transport

Over the last 25 years the Commission has been very active in proposing restructuring the European rail transport market and in order to strengthen the position of railways vis-à-vis other transport modes. The Commission's efforts have concentrated on three major areas which are all crucial for developing a strong and competitive rail transport industry:

1. opening the rail transport market to competition,
2. improving the interoperability and safety of national networks and
3. developing rail transport infrastructure.

Hungary has been a republic with a multi-party system since 1989. The most important bodies are the Parliament (or National Assembly), the President of the Republic and the Government. Parliamentary and local elections are held every 4 years. The next elections will be held in 2026. The 199 members of parliament are elected in a single round, either individually or from their party’s nationwide list. Only parties receiving at least 5% of the votes in the elections are represented in parliament. The President of the Republic calls on the candidate from the winning party to form a government.

The following parties with their own grouping sit in the Hungarian Parliament: FIDESZ - Hungarian Civic Alliance, Christian Democratic People’s Party (governing party), and the Hungarian Socialist Party, Jobbik Movement for Hungary, Politics May Be Different, Democratic Coalition, Dialogue for Hungary, Momentum Movement, Mi Hazánk Movement. The legal system is hierarchical, i.e. lower-level legislation must comply with higher-level legislation. The Hungarian legal system follows continental traditions. Types of legal regulation: acts (can only be enacted by parliament); decrees (adopted by the government and its members); local authority decrees; other legal instruments of state governance. Acts of law adopted by parliament are approved or sent back by the President of the Republic, who is then responsible for their promulgation. They enter into force only after this procedure.

In Hungary, the judiciary is made up of the Curia (Hungary’s supreme court), regional courts of appeal, regional courts and district courts. Judges are independent, reaching decisions on the basis of the law and in line with their deliberations. They may not be influenced or directed in making their judgements.

The Constitutional Court is the supreme guardian of the Fundamental Law (the Hungarian Constitution). The Constitutional Court carries out both general and case-specific constitutional reviews in accordance with the Fundamental Law and constitutional acts.

The police is responsible for public safety and the protection of public order, including criminal investigation, crime prevention, policing, criminal detention and border-guarding tasks.

Legal service departments (Igazságügyi Szolgálatok) provide legal advice free of charge to anyone requesting their services. In Hungary, there are various types of legal assistance available free of charge for people in need: a legal assistant from the contacts directory of legal assistants in non-contentious proceedings and legal representation in civil and criminal proceedings. In addition, people in need can be exempted from all fees and charges if they take legal disputes to court.

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According to data from the HCSO, the gross average wage was HUF 581 900 in December 2022. Average gross earnings were 18.1% higher and average net earnings 18.7% higher than a year earlier. The gross average wages of people in full-time employment in December 2022 (at businesses employing at least five persons, at budgetary institutions and at not-profit entities relevant in employment terms) amounted to HUF 581 900 or HUF 592 900 if persons employed under the public work scheme are excluded. Net average wages amounted to HUF 387 000 excluding allowances and HUF 400 300 including allowances.

Both gross and net average wages excluding allowances increased by 18.1 %. Net wages including rebates (tax and contribution exemptions) increased by 18.7 % relative to a year earlier. Average gross earnings were the highest in financial and insurance sectors (HUF 844 100) and the lowest in the hospitality sector (HUF 316 700). Gross average wages were HUF 565 700 for men and HUF 467 900 for women in full-time employment, representing an increase of 18.1 % for men and 16.5 % for women in one year. The estimated regular gross average wage (excluding bonuses, rewards and the one-month extra benefit) is HUF 469 800, 16.3 % higher than a year earlier. The main types of central taxation are personal income tax, value added tax, excise duty and interest tax.

There are three VAT rates in Hungary today: 27%, 18% and 5%, where the latter two can be considered as preferential rates. The 5% rate applies to books, certain foods, and products whose sale the State supports through a lower rate of VAT. Most products and services are subject to 27% VAT, whereas certain services (e.g. financial services) are tax-exempt, i.e. no VAT is payable on them. A high excise duty is levied on fuel, alcoholic drinks and tobacco products. Interest tax is payable on interest earned from savings in Hungary, investment yields, market profits from shares; the applicable tax is 15% of the interest income from investment.

Local authorities levy local taxes. Local taxes are: building tax, land tax, communal tax, tourism tax, vehicle tax and local business tax.

The personal income tax rate is 15% for all categories of income. The consolidated tax base is reduced by

• family allowance for dependent children (tax base reduction of HUF 66 670 per month for one child, HUF 266 660 per month for two children, HUF 660 000 per month for three children, HUF 880 000 per month for four children, HUF 1 100 000 per month for five or more children)
• from 1 January 2023, the family allowance shall be granted for each dependant who is considered to be permanently ill or severely disabled according to the Family Support Act and shall be increased by HUF 66 670 per month of entitlement and per dependent beneficiary (HUF 10 000 in taxes);
• The consolidated tax base is reduced by tax credit for eligible first married couples.
• If at least one member of the couple is getting married for the first time, the spouses can jointly reduce their personal income tax by HUF 5 000 net per month for 24 months after the marriage.
• The maximum reduction for mothers under the age of 30 in 2023 is HUF 499 952 [1] per month, which means a tax saving of HUF 74 993.
• Benefit for young people under 25
•  As of 1 January 2022, young people under 25 will benefit from a new tax base reduction: they will not have to pay personal income tax up to a certain amount on their income included in the consolidated tax base as defined by law.

The following two tables show the total labour cost and net salary for monthly gross salaries of HUF 150 000 and HUF 800 000 (based on 1 year’s work, with one, two or three dependent children).

The beneficiaries of the tax rules are families with three or more children. The gross salary of HUF 800 000 per month comes to HUF 572 000 net for employees with two children and to HUF 631 000 net for employees with three children. Tax relief for families may be claimed against both tax and social security contributions. Consequently, employees with a gross salary of HUF 150 000 receive a net salary of HUF 147 750 (nearly equal to the gross salary), if they have three children.

Effective from 2019, the range of fringe benefits were curtailed considerably, as were the benefits previously available as certain specific benefits or tax-free benefits. As from 1 January 2023, employers may provide fringe benefits subject to preferential applicable taxation terms only by paying into the relevant (catering, accommodation or leisure) wallets of the Széchenyi Recreation Card (SZÉP Card). In 2023, the tax on fringe benefits will be 15% personal income tax and 13% social contribution tax. This represents a total tax liability of 28%. Private sector employers may grant fringe benefits equal to the part of the annual figure of HUF 450 000 proportionate to the days spent in employment. For budgetary entities, the cap is equal to the proportionate part of an annual figure of HUF 200 000.

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The cost of living includes the following main expenditure items:

- food,

- lhousing and household expenses (plus cost of electricity, water and natural gas),

- transport and telecommunications,

- education and culture,

- services (clothing, hairdressing, restaurants, dentist, entertainment, etc.).

Data from the KSH reveal that in 2021, the monthly per capita consumption was HUF 202 333. Hungarian households spent 26.7% of their total personal expenditure on food. The second highest outlay was on household maintenance (17.8 %), but for those renting a home the figure was much higher (reaching 50-60 %). Daily transport costs represent 11% of the total expenditure. The amount remaining for other needs was spent on clothing, culture, hotel accommodation and entertainment.

The price of fuel is around HUF 590 to 609 per litre. A family of four spends approximately HUF 45 000 to 60 000 on groceries per week, while a pair of good quality shoes is between HUF 20 000 and HUF 25 000. Cinema and museum tickets cost HUF 2 500 to HUF 3 000 on average.

An average hairdressing service ranges between HUF 4 000 and HUF 8 000; however, prices in the capital and those the countryside may differ considerably. Dinner in a moderately priced restaurant costs between HUF 3 800 and HUF 5 500 per person.

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Housing options in Hungary differ considerably between Budapest and the rest of the country. While detached houses are common in villages and smaller towns, people tend to live in housing estates and apartment blocks in big cities.In 2022 housing loans stood at HUF 4 807 billion, 4.8% (HUF 222 billion) higher than at the end of 2021, while the ratio of housing loans to GDP increased to 8.7% from 8.3% at the end of the previous year. Most loans were disbursed for the purchase of second-hand housing In the first six months of 2022, 50 000 housing loans were disbursed for a total of HUF 592 billion. The number of disbursed loans decreased by 15%, while the amount increased by 4.1% compared to the same period of the previous year. l. In the first half of 2022, 55 thousand housing loans were approved, worth a total of HUF 756 billion. Compared with the same period in 2021, the number of loans approved increased by 5.1% and the amount by 26%. . Home loans continued to be dominated by loans for the purchase of used housing, with 54 % of the number and 63 % of the amount of loans disbursed served this purpose. In the first half of 2022, the number of loans disbursed for the purchase of second-hand housing decreased by 26, and the amount by about 5% compared with the same period of the previous year. The average loan amount increased from HUF 11 million a year earlier to HUF 14 million, in line with the rise in second-hand house prices. The country’s housing stock is 4.6 million, up 4.6% in 11 years. Between 2011 and 2022, 171 thousand dwellings were built in Hungary. The average size of homes is 96 square metres. The proportion of owner-occupied homes is high: in Hungary, almost 97% of homes are privately owned. However, the proportion of owner-occupiers is decreasing. The level of rents varies considerably, depending on the location, accessibility and condition of the property. The most expensive properties are naturally properties in good condition in Budapest. Rent for an average two-room home in good condition is HUF 190 000 excluding service charges, and over HUF 330 000 for homes with a floor area of over 100 square metres.

Written contracts are recommended when renting a property, and compulsory when buying. The contract must be countersigned by a lawyer or notary and submitted to the land registry, which manages real estate records, for the purpose of registering ownership. In order to clarify the legal status before purchasing or renting a home, it is advisable to check the deeds of the property, which contains public data on the owner and encumbrances on the property. The property deed can be requested online from the land registry office or in person from a government office.  An important rule is that if a taxpayer rents out a property in one municipality at the same time as renting a property in another, tax has to be paid only on any profit arising from the difference between the incoming and outgoing rent.

In 2022 stamp duty (current name: duty on transfers of property for consideration) payable by buyers of real estate is 4% of the purchase price in all cases. The duty payable will be HUF 400 000 for a flat worth HUF 10 million and HUF 800 000 for a detached house worth HUF 20 million. The seller incurs a tax liability only if they have earnings from the sale of the property. If a seller who had purchased a property for HUF 15 million at some point in the past is able to sell it for only HUF 13 million years later, they will not incur any tax liability. The seller will need to pay personal income tax if they resell a property within 5 years of purchase (in the case of flats and detached houses) or within 15 years. PIT is payable only on the difference in prices. When buying a home, it is necessary to register with the local electricity, gas and water providers and waste collection company and provide them with the relevant particulars.

You may also need to sign contracts with a telephone company and internet and cable television service providers.

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In Hungary, healthcare is provided by both public and private healthcare providers. A healthcare provider may only conduct healthcare activities in Hungary if it holds an operating licence issued by the government office (depending on competence). Any service provider meeting the personnel and material requirements is eligible for a licence. The healthcare provider is entitled to financing from the Health Insurance Fund for providing healthcare services if the National Healthcare Fund Manager (NEAK) has entered into a financing agreement with it to perform tasks. As a rule, healthcare provided from capacity covered by the financing agreement is granted to patients free of charge. However, a fee may be charged for care provided from surplus capacity.

Healthcare consists of services and monetary benefits. Services: screening tests, emergency care, lifesaving, GP services (GPs can be freely chosen), specialist outpatient care, inpatient care, medical rehabilitation. All Hungarian nationals under the age of 18 or over 60 are entitled to free dental care, and regardless of age, everyone is entitled to dental inflammation centre examinations and the treatment of tooth and mouth diseases related to an underlying illness. Monetary benefits include maternity allowance, child care allowance, sick pay (childcare sick pay) and accident sick pay, depending on prior insurance coverage.

People classified as insured are entitled to use the services of the healthcare system in Hungary. Everybody carrying out an economic activity is insured. Insured people are entitled to both healthcare services and monetary benefits.

Anybody receiving welfare benefit in some form (sick pay, family benefits, accident sick pay, accident allowance, old-age or survivors' benefit, etc.), socially disadvantaged people and minors are also entitled to healthcare services. As of 1 January 2020 anyone not falling into any of the insured categories can pay the mandatory HUF 7 710 per month (HUF 257 per day) to the Healthcare Fund and thereby become eligible for healthcare services, provided that they have been residing in Hungary for the previous 12 months. After 2020 the monthly rate of the health service contribution for the current year is the monthly rate of the health service contribution for the year before the current year, rounded to HUF 100, valorised by the change in the consumer price index published by the Hungarian Central Statistical Office for the month of July of the year before the current year compared with the same period of the previous year. The daily rate of the health service contribution is one thirtieth of the monthly rate, rounded up to HUF 10. The National Tax and Customs Administration publishes the contribution rates established in accordance with the above on its website by 31 October of the year preceding the year in question.

Entitlement to benefits can be verified by the ‘TAJ’ card (which contains the person’s social security number and other personal data). EU nationals staying in Hungary on a temporary basis, arriving from the territory of an EEA member state, may present their European Health Insurance Card to request necessary medical care, essentially emergency services. Planned care is available as an EU patient at the patient's own expense.

Legislation lays down which medicines are prescription-only and which ones can be obtained over the counter. Healthcare providers with a contract with the NEAK issue prescriptions free of charge. In Hungary prescription medication may be purchased only with prescriptions complying with Hungarian law or prescriptions duly issued in another EU country. In 2021, there were 2 277 public pharmacies (and 636 branches) in Hungary, online distribution is also possible. Medication funded by social security is reviewed annually. A number of basic, non-prescription drugs can also be purchased outside of pharmacies (e.g. at petrol stations and shopping centres).

Public health tax is payable on foodstuffs with high sugar, salt, alcohol or caffeine content when they are placed on the market. The tax collected is used to improve the health of the population.

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Public education institutions in Hungary include nursery schools, primary schools, grammar schools, vocational grammar schools and secondary vocational schools, basic level art educational institutions, boarding schools and dormitories. Public education establishments may be founded and maintained by the state, national minority self-governments, legal church entities and organisations engaged in religious activities, or other people and organisations.

Participation in public education financed by the public institution maintenance centre is generally free of charge in Hungary, although in certain cases a limited fee may be charged (for music lessons, dormitory accommodation, etc.).

The state also supports the operation of non-state-run educational institutions.

Children can attend a crèche in Hungary up to the age of three, where they are looked after in small groups, with whole-day or half-day supervision.

Nursery school education begins when the child is 3 years old and lasts until 31 August of the year in which the child reaches the age of seven. Nursery school education is compulsory, from which exemption may be requested to a limited extent.

A child becomes subject to compulsory education in the year in which he or she reaches the age of six by 31 August. At the request of the parent, the child may attend kindergarten for an additional year of education, on the basis of a decision of the body granting the exemption. Parents may submit their request to the body granting the exemption by 15 January of the year in which the school starts. If an expert is to be heard in the proceedings, only a committee of experts may be appointed. If the expert committee recommends that the child should continue to attend nursery school for another year before the deadline for the submission of the parental application, the parental application does not need to be submitted. If the child reaches the level of development required for school entry earlier, the entity authorising the exemption may, at the request of the parent, allow the child to start to fulfil his/her compulsory education before the age of six. . Compulsory education ends in the academic year in which students reach the age of 18.

As a rule, primary education lasts for 8 years; it may be received at a primary school for 8 years or, after completing the 4th or 6th academic year, at a secondary school for a further 6 or 8 academic years.

Secondary education commences in year 9 and, depending on the type of school, is completed at the end of year 10, 12 or 13. The main types of secondary education institutions are: secondary vocational school, grammar vocational school and grammar school. Upon completing studies at the latter two, students take a secondary school leaving examination.

Institutions of higher education in Hungary are state and non-state universities and colleges recognised by the State. Universities provide training for 4, 5 or 6 years, while colleges provide courses that last 3 or 4 years. In the school-leaving examination, candidates with a pass mark will be admitted to a higher education institution. An entrance examination will be determined depending on the institution. In the 2022/2023 academic year in Hungary, 1 852 000 persons participate in training offered at different levels in public and higher education. 323 000 attend kindergartens, 719 000 primary schools, 195 000 grammar schools providing daytime education, 166 000 technical high schools, 60 000 vocational schools and 6 8 thousand schools specialising in skills development. 207 000 young people study at higher education institutions. 719 000 pupils receive primary school education. There are currently 74 000 teachers employed full-time in primary schools. The number of pupils per teacher is 9.7. Currently 60 000 students study in secondary vocational schools and 195 000 in vocational grammar schools; the number of students has risen to 195 000 in grammar schools.

In the 2022/2023 academic year, the total number of teachers employed in public education institutions within the framework of a main employment relationship is 74 000. The number of those enrolled in institutions of higher education is 289 000. 251 000 persons have been enrolled for bachelor or master courses or undivided training. 11 980 are enrolled in higher education, 10 581 in doctoral programmes and 16 236 in vocational post gradual training. In recent years, the number and proportion of students of foreign nationality has risen steadily, with their current number standing at 42 000.

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There are numerous entertainment and recreation opportunities in Hungary. In addition to the multiplex movie theatres located mostly in major shopping centres, there is a network of art cinemas where arthouse films are screened. There are theatres in all cities, although most are in Budapest. The Budapest Opera House, the Erkel Theatre, the Academy of Music and the Budapest Palace of Arts offer a variety of programmes for classical music lovers; their artists are renowned all over the world. Four regional units of the National Philharmonic Orchestra organise classical music concerts. Furthermore, there are over 850 museums (e.g. the Csontváry Museum in Pécs) and libraries across the country. As regards entrance fees, the same discounts are available to both EU and Hungarian nationals.

Young people throughout Europe have heard of the Sziget summer festival and the Open-Air Theatre in Szeged; other festivals such as EFOTT, Balaton Sound and Fishing in Orfű also attract a large numbers of visitors. Also worthy of mention are the many evening music venues to be found in the cities. Over the last few years, Budapest has become one of the favourite leisure destinations for Europe’s young people.

As a major attraction for families, Budapest offers the Városliget (City Park), where children can enjoy the zoo and botanical garden plus the circus, while adults take in the Museum of Fine Arts and the ‘Műcsarnok’ exhibitions. Outside Budapest there is also much to offer, with excellent exhibitions and zoological gardens (Veszprém, Debrecen, Nyíregyháza) and outstanding natural attractions (Hortobágy, Lake Tisza Ecocentre, Kis-Balaton).

Hungary has a wealth of mineral water spas, which strongly influence leisure activities, as they have given rise to a number of world class four- and five-star wellness and spa hotels in all parts of the country. In recent years, a number of thematic night-time programmes have grown to reach nationwide coverage; examples include the nights of theatres, museums, professions, spas and arthouse cinemas, all of which offer rich entertainment for free. In addition, countless excellent gastronomical events take place throughout the country.

All cities offer sporting opportunities: a variety of sports can be pursued at various sports facilities and fields, and special, extreme sports are offered in larger cities.

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In Hungary, the vast majority of babies are born in hospitals; while home births are permitted under strict rules, they are rare. Births must be notified to the competent civil registrar on the first working day following the birth at the latest (the national authority responsible for the registration of births is the Budapest Government Office). Upon notification, the civil registrar immediately enters the birth in the register and automatically issues the birth certificate to the child’s legal guardian. Birth certificates are required in various official procedures throughout one’s life.

Marriages can be held before the civil registrar 30 days after notification of the intention to marry. Marriage ceremonies are held in public, in the presence of two witnesses, where the man and woman, appearing together, jointly declare their intention to marry before the civil registrar, and the registrar then records the marriage in the register of marriages. A marriage certificate is issued from the register, which serves as evidence of the marriage. Marriages between direct relatives and siblings, and marriages with the direct descendant of a brother or sister, or between an adoptive parent and an adopted child during the period of adoption, are invalid. Under Hungarian law, marriage is permitted only between a man and a woman, whereas same-sex couples can have a registered civil partnership, which gives them the same status as married couples, with the exception of the joint adoption of children and having a married surname. Hungarian law also gives certain rights to unmarried heterosexual couples living in the same household. For example, the partners are treated as relatives and jointly own property in proportion to their contribution to the household, etc.

In addition to marriages made under civil law, it is common in Hungary to hold a church wedding. Unlike the civil wedding however, this does not entail legal consequences under family and property law and is not recognised by the state.

Either party or both parties may jointly request that the court dissolve the marriage if their marriage has deteriorated completely and irreparably. If a request to this effect is made jointly by the married partners without being influenced, this condition need not be scrutinised and the court will dissolve the marriage.

Deaths must be registered on the first working day after the death; the civil registrar immediately enters the death in the register on the basis of the relevant report. After registering the death, the registrar issues a death certificate to the person or entity responsible for organising the funeral.

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By virtue of its geographical location, Hungary plays an important role in European international traffic, with a considerable amount of business and private transit traffic. The country’s motorways (M0 – Budapest ring, M1 – Budapest-Hegyeshalom, M3 – Budapest-North Great Plain, M5 – Budapest-South Great Plain, M6 – Budapest-Pécs, and M7 – Budapest-Lake Balaton) can be used by motorcycles, Category D1/D2 passenger cars, and buses (B2) by purchasing a prepaid e-vignette. Toll category U is the towing vehicle for vehicles in toll categories D2 and B2, for which the entitlement must be purchased for the registration number of the towing vehicle.

Motor vehicles heavier than 3.5 tonnes must pay a toll, the amount of which varies by type of vehicle and the distance travelled, not only on motorways but also when using certain stretches of national roads (totalling 6 513 km). The toll can be paid electronically.

Speed limits are as follows: 130 km/h on motorways, 90 km/h on public roads, and 50 km/h in residential areas.

The age threshold for obtaining a driving licence in Hungary is 17 years. The medical certificate must be renewed every 3.5 or 10 years, depending on age. There are 4.1 million road vehicles in Hungary, of which 3.4 million are passenger cars.

Transport fines are high. The amount of fines varies between HUF 45 000 and HUF 90 000 (the latter amount applies to, e.g. driving without a licence), and drivers receive penalty points. Drivers the number of whose penalty points reaches 18 are temporarily disqualified from driving for 6 months. The Public Road Intelligent Camera Network has also been put into operation in order to monitor the traffic.

Railway services are mainly provided by the state-owned company, Magyar Államvasutak Rt. (MÁV Rt.). The privately owned Győr-Sopron-Ebenfurt Railway also operates services on certain lines in the north-west of the country (Sopron, Mosonmagyaróvár, Hegyeshalom). A 260-km single trip costs HUF 4 200, and no discount is given for return tickets (i.e. the single fare is doubled). Added to this are the supplements and reservations purchased in advance or on the day of travel, which cost anywhere between HUF 150 and HUF 1 035. The full price of a 30-day rail pass for a 260-km distance (e.g. from Budapest to Nyíregyháza) is HUF 160 900, i.e. almost double the minimum wage. Long-distance bus fares are roughly the same as rail fares.

Local public transport is available in cities. Buses are available in most cities, while Budapest, Szeged and Debrecen also have trams. Budapest also has four metro lines and a large number of trolleybuses. Public transport tariffs are generally higher, proportionally, than for long-distance transport (a single ticket for any means of transport in Budapest costs HUF 350). Several suburban railway (HÉV) lines connect Budapest with the adjacent area. In addition, several regional train services operate up to a distance of 40-50 km. Most cities have brought in parking fees, which are expensive and therefore provide an incentive to use public transport as much as possible. There are four parking areas (formally known as waiting areas) in Budapest, marked by A, B, C and D. The rate of the parking fee per hour in parking zones for passenger cars, three- or four-wheel motorcycles, three- or four-wheel mopeds, trailers or caravans towed by passenger cars and lorries with a maximum permissible weight not exceeding 3 500 kilograms:

HUF 600/hour in parking zones A,

HUF 450/hour in parking zones B,

HUF 300/hour in parking zones C,

HUF 200/hour in parking zones D.

The parking charges for caravans, buses, lorries with a maximum authorised weight exceeding 3 500 kilograms, agricultural tractors, slow-moving vehicles and corresponding trailers or caravans are three times the parking charge specified in the previous paragraph. The data available reveal that the volumes of non-local passenger traffic in the country have not changed much over the last 10 years: bus traffic represents three quarters and railways represent one fourth of such traffic.

Discounts are available on both local and non-local transport. Eligibility for discounts is determined on the basis of age (under the age of 6, from 6 to 14, over 65) or student, pensioner, unemployed or refugee status. Disabled people and groups travelling together are also eligible for discounts. Discounts are 100%, 90%, 67.5% or 50%, depending on the category. For example, a family with three children can receive a 90% discount on all non-local lines. These discounts are also available for EU nationals.

Hungary has two international airports, one in Budapest and another in Debrecen. Most of the passengers arrive from or leave for airports in the United Kingdom, Germany, Italy, Spain or the Netherlands. Those who arrive in Budapest by air, may choose between bus service 200E (standard-price ticket) and the direct airport bus 100E. Travel by taxi is offered by Főtaxi, the official transportation partner of Budapest Airport, as well as other taxi companies. In Budapest, the fare for the taxi service is a single, fixed official price regardless of the time of day, holiday or service provider. You can always read the fare on the taximeter. The fare is composed of a basic tariff, a distance-related charge and a minute charge. Per-minute charges are calculated by the taximeter below a 15 km/h speed limit.

Taxi fares applicable from 6 March 2023:

Basic fee: HUF 1 100

Fee per minute: HUF 110

Colometre charge: HUF 440

MiniBUD Airport Shuttle Service and other transfer services are also available. In 2018 nearly 14.9 million passengers passed through the Ferenc Liszt International Airport (BUD – Budapest Airport), which represents an increase of 13.5% relative to the previous year.

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