Cost of an employee in Hungary (2026)
What an employee really costs an employer in Hungary: gross salary plus mandatory employer social contributions.
On a gross salary of HUF 727,700 per month in Hungary, an employer pays about HUF 822,301 in total once mandatory employer social contributions of 13% on top of the gross are included.
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How salary is taxed in Hungary
Income tax in Hungary is a flat 15% on taxable income.
Employees also pay social contributions of around 18.5% of gross salary.
The standard VAT rate is 27%.
Frequently asked questions
What does it cost to employ someone in Hungary?
On top of the gross salary, an employer in Hungary pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026