If you run a Hungarian company, sooner or later you will need employees to help you run your business. Finding the right employee is an art in itself, for which you might want to consult an HR specialist. Apart from that, there are some basic things you need to know. Read about this in detail, and scroll down for the checklist.
If you want to employ someone for your Hungarian company, they will need to have a social security number and tax number. If you employ a Hungarian citizen, they will most probably have these by default, and they will surely not need a separate work permit.
If your employee comes from another country of the European Union, they will need a registration card, which basically functions as a resident permit and work permit. They will still need a separate social security number and tax number.
If your employee comes from a third country, that is, from outside the European Union, they will need a resident permit and a work permit. These two permits are combined in one single document, for which they can apply (together with the social security number and tax number) when you already have an agreement with them.
This means your future employer cannot present a work visa when applying for a position at your company; they can acquire it only when you already have an agreement.
You should have an employment contract in which the job requirements, the gross salary and the first day of employment of the new hire is clearly stated. The first day of employment cannot be the same as the date on the contract, as every company is obliged to declare to the tax authority when a new employee starts working there – and do this at least one day before they start.
Please note that in Hungary the minimum salary for a basic, 40-hour week in a position without a need for any qualification is gross HUF 111,000 (ca. EUR 350) / month, while the guaranteed minimum salary for positions requiring secondary education is gross HUF 129,000 (ca. EUR 410) / month.
The more complex the job you want to assign to your employee, the higher qualifications they will need to be able to perform the job properly. Accordingly, their salary will need to be higher as well.
By the time you get to hiring an employee, you already know that in Hungary every company is obliged to have an accountant. Your accountant will prepare the payrolls for you and your employees in every month. For this, you will need to send your accountant the attendance sheet of each employee by the 1st day of the next month. Salaries for the previous month should be paid to employees by the 10th and contributions should be paid by the 12th.
For example, if you want to hire an employee working for your company starting from July:
At any point, make sure to consult your accountant in order to ensure you always comply with current regulations.
If you own a Hungarian company, you have to pay certain taxes and contributions after the dividend you take based on whether or not you are a tax resident in Hungary.Read More
Calculating the taxes on dividend and dividend advance is a complex task, so make sure to ask your accountant or payroll specialist to advise you on your specific case before you take dividend from your Hungarian company.Read More