Hungary: Operating a Business

Legal Forms of Companies

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Korlatolt felelosségû tarsasag (Kft) is a Private Limited Company Minimum of HUF 500,000	No limitation. Liability is limited to the amount contributed.
Részvény tarsasag (Rt) is a Public Limited Company Minimum HUF 5 - 20 million	No limitation. Liability is limited to the amount contributed.
Közkereseti tarsasag (Kft) is a general partnership No minimum capital	No limitation. Partners' liability is several and indefinite.
Betéti tarsasag (Bt) is a limited partnership No minimum capital	Two types of partners: active partners (General Partner) and sleeping partners (Limited Partner). Unlimited liability for at least one partner (General Partner). Unlimited liability for at least one sleeping partner (Limited Partner).

Enterprises Federation: Hungarian Association of Business Assistance
Confederation of Hungarian Employers and Industrialist

Source: Doing Business.

For Further Information: Consult Doing Business Website, to know about procedures to start a Business in Hungary.
Trade Register, only in Hungarian.
The Competent Organization: The Commercial Register.

Principle: More information on Hungary website.
Minimum Debt-to-Capital Ratio Triggering Liquidation: More information on Hungary website.
Bankruptcy Laws: Law VI. Of the year 2006 (only in Hungarian).
Criminal Bankruptcy.
Banruptcy an liquidation procedures.
Reorganization and Rehabilitation Laws: Law VI. Of the year 2006 (only in Hungarian).
Terminating a company.

	2010
Labor Force	4,300,000

Source: CIA - The world factbook

Source: UN - United Nations

Employed Persons, by Occupation (% of Total Labor Force)	2007
Agriculture	5.0%
Mining	0.4%
Processing industry	22.4%
Electrical energy, gas, water	1.7%
Construction	8.1%
Commerce, service	15.1%
Tourism	4.0%
Transport, post, telecom	7.3%
Finance	2.0%
other economic	7.1%
Administration	7.2%
education	8.3%
Healthcare	6.8%
other service	4.6%

For Further Statistics: Labor administration and national statistics office.
For Further Information About the Labor Market: Magyarorszag, Hungary website
Public Employment service

Opening Hours
Legal Weekly Duration: 40 hours per week
Maximum Duration: 60 hours per week
Night Hours: Work carried out between 22 hours and 6 hours is classified as night work.

Working Rest Day: A 48 hours rest period is required during any seven day period.
Paid Annual Vacation: The standard number of days of annual leave is 21. The amount of days of holiday will increase according to your age. The older you are the more days of holiday you get. Example: 21 days from age 25, 22 days from age 28, 23 days from age 31, 24 days from age 33, 25 days from age 35, etc.
Retirement Age: 20 years in service and minimum 62 years.
Child Labor and Minimum Age For Employment: The law protects children from exploitation in the workplace. Children under 16 are prohibited from working, except under certain conditions, such as temporary work during school vacations for those between 14 and 16. Children may not work night shifts, overtime, or at hard physical labor.
Informal Labor Market: Quite important especially on construction sites and cash related jobs (hairdresser, plumber, etc).

Minimum Wage: 65.500 HUF (262 EUR).
Average Wage: Average monthly gross earnings in Hungary is HUF 191,930 (USD 1,000).
Other Forms of Pay
Pay For Overtime: +25% - 50% depending on the overtime
Pay For Rest Days Worked: According to collective agreements
Pay For Night Hours: 10-25%
Pay For Overtime at Night: Like overtime

The Areas Covered: The Hungarian social insurance system contains the following elements:
- Health service (although there is a public healthcare system, private health insurance is considered very important by Hungarians. Many foreigners living/working in Hungary invest in private healthcare cover or negotiate cover as part of their employment conditions.)
- Social care
- Family and Child welfare
- Pensions and assistances
- Unemployment assistance
- Education.
Contributions: Contributions Paid By the Employer: Medical insurance 1950 HUF
social security 11%
pension insurance 18%
unemployment insurance 3%
training contribution 1,5%
Contributions Paid By the Employee: Social security is paid by employees at the follow amounts: pension contribution: 8.5%, health care contribution: 4%, Unemployment contribution: 1%.
Competent Organization: Social and Employment MInistry
Social security

Method of Recruitment: Newspaper, headhunters, Internet, fairs.
Recruitment Agencies: Addeco, EastEuroCo Executive Search Group, Telkes Consulting Incorporated, HILL International.
Recruitment Websites: Job Monitor
Job Pilot

Type of Contract: Full- and part-time contracts, assignment contracts, outsourcing contracts. More information on Just Landed website.

Breach of Contracts
Retirement: The old-age retirement age limit is 62 for both man and woman. Details of early retirement and pre-early retirements on Hungary website.
Dismissals: In Hungary, the statutory notice period ranges from 30 days (after up to 3 years of service) to 90 days (after 20 years of service). For half of the notice period, the employee must be exempted from work. Severance pay amounts to one monthly wage after 3 years of service and gradually increases to 6 monthly wages after 25 years of service.
Details in the Labour Code of Hungary, law XXII of the year 1992.
Other Possible Methods: Details in the Labour Code of Hungary, law XXII of the year 1992.
Labor Laws: Labour Code of Hungary, law XXII of the year 1992

Cases of Dispute: Bad behavior at work, sexual harassement, psychological harassement, etc.
Procedure: Labour Code of Hungary, law XXII of the year 1992

Social Dialogue and Involvement of Social Partners: The law allows unions to conduct their activities without interference, and the government protects this right in practice. Collective bargaining is protected by law, and it was freely practiced. Approximately 40 percent of the workforce is covered by collective bargaining agreements (almost 3,000 collective bargaining agreements existed). Workers have the right to strike, and workers exercise this right in practice.
Unionization Rate: 40%
Unions: Cooperation Forum of Unions
National Organization of Hungarian Unions
Regulation Bodies: Ministry of Labor

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