Payroll Services in Hungary

Mercans is your premier partner for top-quality payroll services in Hungary, offering both Managed and SaaS solutions. Our steadfast commitment to delivering exceptional payroll outsourcing in Hungary is unmatched. With extensive experience in the payroll sector, Mercans ensures precise and compliant payroll services in Hungary, making us the preferred choice for businesses of all sizes.

Rely on Mercans for prompt and accurate payroll transactions, along with the convenience of multi-currency payments tailored to the Hungarian market. As your dedicated local provider of payroll in Hungary, we feature a team of in-country payroll specialists well-versed in local regulations, providing comprehensive assistance for a seamless payroll experience customized to your business requirements.

Payroll Provider in Hungary – Roles and Responsibilities

As a leading payroll provider in Hungary, Mercans delivers more than just basic payroll calculations. Our advanced technology minimizes administrative tasks for employers and enhances employee experiences. Here’s what you can expect from top payroll service providers:

• Automatic Payroll Processing: Automates wage calculations and employee payments, saving time and offering flexible payment options.
• Tax Withholding and Wage Garnishment: Accurately withholds taxes, garnishments, and other payroll deductions, ensuring timely payments.
• Tax Filing Services: Handles tax filings and assists with year-end reporting on behalf of clients.
• Compliance Expertise: Keeps clients informed about regulatory changes and ensures adherence to wage and tax laws through real-time updates.
• Payroll Reporting: Provides detailed reports on payroll operations, including wages paid, taxes withheld, and hours worked.
• Employee Self-Service: Empowers employees to manage their pay statements, update withholdings, and change personal information independently.
• Product Support: Offers expert support specialists for prompt assistance.

Payroll Solutions in Hungary

Experience streamlined payroll processing in Hungary with Mercans’ Global Payroll Solutions. Our versatile models ensure local compliance, handle multi-currency transactions, and seamlessly integrate with global Human Capital Management (HCM) and Enterprise Resource Planning (ERP) systems.

Explore Our Adaptable Models

• SaaS (Software as a Service): Designed for large enterprises managing complex, multi-country payrolls.
• Managed Services: Ideal for mid-sized to large enterprises requiring full payroll outsourcing.

Everything you need to know before running payroll in Hungary

Hungary Overview

Hungary, located in Central Europe, remains a key destination for international business, offering access to EU markets, a skilled workforce, and developed infrastructure. The country continues to attract foreign direct investment across sectors such as automotive, IT, and shared services.

Minimum Wages

Minimum wage levels in Hungary are revised periodically by government decree. Employers must apply the latest officially published minimum wage and guaranteed minimum wage rates applicable for qualified roles.

Working Hours and Overtime Pay

In Hungary, standard working hours are 8 hours per day and 40 hours per week.

Overtime Regulations

• Daily and Weekly Limits:
  • Total working time, including overtime, must comply with maximum limits under labor law.
• Annual Overtime Limits:
  • Standard overtime is limited annually, with higher limits possible under collective agreements or voluntary arrangements.

Overtime Compensation

Employees are generally entitled to additional compensation or time off for overtime work, in accordance with Hungarian Labour Code provisions.

Payroll Cycle

In Hungary, payroll is processed monthly. Salaries must be paid by the 10th day of the following month at the latest.

13th Month Salary

A 13th-month salary is not mandatory in Hungary but may be provided at the employer’s discretion.

Termination and Severance Pay

Termination Process

Termination must follow legal requirements, including written notice and justification where applicable.

Severance Pay

Employees may be entitled to severance pay depending on tenure and termination grounds, in accordance with Hungarian Labour Code.

Company Registration in Hungary

Hungary offers a structured and business-friendly environment for company formation. Mercans supports businesses through the full setup process.

Key Steps Include:

• Legal and tax advisory prior to incorporation.
• Selection of appropriate business structure.
• Preparation and submission of incorporation documents.
• Registration with tax authorities and statistical office.
• Opening of corporate bank accounts.

Payroll Compliance in Hungary

Employers must comply with Hungarian tax and labor regulations, including registration, reporting, and payment obligations.

Regulatory Requirements

• Registration with the Hungarian Tax Authority.
• Electronic communication through official government systems.
• Registration of employees and reporting of employment changes.

Monthly Payroll Reporting

• Submission of payroll returns detailing income and contributions.
• Withholding of personal income tax and employee contributions.
• Payment of employer social contribution tax.

Payroll Payments

• Salaries must be paid in local currency unless otherwise agreed.
• Payroll taxes and contributions must be settled within statutory deadlines.

Payroll Taxes in Hungary

Social Security Contributions

Employers and employees must contribute to social security based on gross income, in accordance with current legislation.

Personal Income Taxes

Hungary applies a flat personal income tax rate on employment income.

• Personal Income Tax (PIT): 15% of taxable income.

Employee Benefits in Hungary

Employee benefits include mandatory and supplementary elements.

Mandatory Benefits

• State pension system participation.
• Paid annual leave and statutory leave entitlements.
• Maternity and parental benefits.

Supplementary Benefits

• Voluntary pension schemes.
• Private health insurance.
• Group life and accident insurance.

Streamline Payroll with Mercans’ Technology and Integrations

• Technology: Explore payroll technology here
• Integrations: Seamless integrations here
• Recognitions: Awards and recognitions here