Understanding market competitive salaries in Hungary is crucial for both employers and employees. A competitive salary attracts and retains top talent, while an uncompetitive one leads to difficulties in hiring and high turnover.

Factors Affecting Market Competitive Salaries

• Industry: Salaries vary significantly by industry. For instance, IT professionals typically command higher salaries compared to those in retail or hospitality sectors.
• Experience & Qualifications: More experience and relevant qualifications generally translate to higher salaries. This is especially true for specialized fields like healthcare.
• Location: Salaries tend to be higher in Budapest, the capital city, compared to other regions in Hungary.
• Company Size: Larger, multinational companies often offer more competitive salaries and benefits packages compared to smaller, local businesses.
• Supply & Demand: In a candidate-driven market, where there's a shortage of qualified professionals for a particular role, salaries tend to be higher to attract talent.

Researching Competitive Salaries in Hungary

• Salary Surveys: Websites provide salary data based on job titles, locations, and experience levels.
• Job Boards: Many job boards in Hungary list salary ranges alongside job postings. This can be a good indicator of what employers are offering for specific roles.
• Recruitment Agencies: Recruiting specialists stay up-to-date on salary trends and can provide valuable insights during the negotiation process.

In Hungary, a government-mandated minimum wage is in place that all employers are required to follow. There are two levels of minimum wage, which are determined by the education level required for the job.

Minimum Wage Levels

For jobs that do not require any specific education or qualifications, the minimum wage is HUF 266,800 gross per month for full-time employment (40 hours per week). This breaks down to:

• HUF 61,340 per week
• HUF 12,270 per day
• HUF 1,534 per hour (based on a 174-hour work month)

For jobs that require at least a high school graduation certificate, the guaranteed minimum wage, also known as the graduate minimum wage, is HUF 326,000 gross per month for full-time employment. This breaks down to:

• HUF 74,950 per week
• HUF 14,990 per day
• HUF 1,874 per hour (based on a 174-hour work month)

These minimum wage levels were implemented on December 1, 2023, as per Government Decree No. 507/2023.

Base Wage and Payment Currency

The minimum wage is used as the baseline for an employee's base wage, which can be set on an hourly or monthly basis. By law, all wages must be paid in Hungarian Forint (HUF), with rare exceptions for some executive positions.

In Hungary, employee compensation extends beyond the base salary. Many companies offer a variety of bonuses and allowances to attract and retain top talent.

Mandatory Benefits

Hungary mandates several benefits that employers must provide by law:

• Medical Examination: New hires receive a medical exam before starting work, with yearly checkups following.
• Occupational Safety Training: Employers are required to conduct health and safety training for all employees.
• Paid Time Off (PTO): Hungarian workers are legally entitled to paid vacation days and sick leave. Specifics may vary depending on employment contracts or collective bargaining agreements.
• Pension Contributions: Both employers and employees contribute to a national pension system.

Common Supplementary Benefits

In addition to mandated benefits, many Hungarian employers offer additional perks to enhance employee wellbeing and satisfaction.

• Bonuses: While not required by law, companies often provide cash bonuses based on performance, reaching targets, or company profits.
• Insurance: Supplemental health, life, and accident insurance are popular benefits.
• Allowances:
  • Meal Allowances: To offset meal costs, employers may provide meal vouchers or a designated daily allowance.
  • Transportation Allowances: Companies might offer allowances to cover commuting expenses, like public transportation tickets or car allowances.
  • Mobile Phone Allowances: Some employers reimburse or subsidize mobile phone costs for work-related use.
• Other Perks:
  • Wellness Programs: Companies may offer gym memberships or wellness program subscriptions.
  • Additional Days Off: Employers might provide extra paid days off beyond the legal minimum.
  • Flexible Work Arrangements: Some companies allow flexible work schedules or remote work options.

In Hungary, employees are paid on a monthly basis for the work they performed in the previous month.

Payment Schedule

Employees are paid by the 10th of the month following the pay period. This is in accordance with Hungarian labor laws, which aim to ensure that employees are compensated in a timely manner.

Salary Details

Salaries are paid in Hungarian Forint (HUF). Employers can choose to pay their employees either by bank transfer or in cash, as both methods are legally acceptable. The choice of payment method can be based on the preferences of both the employer and the employees.

Additional Considerations

Full-time work in Hungary is limited to 40 hours per week, typically spread over five working days. Employers can set a probationary period of up to three months, but they also have the option to shorten this period. In terms of termination, notice periods can extend up to six months.