Hungary · Glossary
Hungary HR and payroll glossary
13 local terms and acronyms: tax, social security, payroll and employment law.
The terms and acronyms you meet on payslips, tax and employment documents in Hungary. Figures are for 2026; the calculations are on Hungary's HR data page and in the take-home pay calculator.
25 év alattiak kedvezményeFelmondási időMt.NAVPróbaidőRehabilitációs hozzájárulásSzabadságSzemélyi kedvezménySZJASzochoTávolléti díjTB járulékVégkielégítés
Tax
25 év alattiak kedvezménye Under-25 income tax exemption
25 év alatti fiatalok kedvezménye
Employees under 25 pay no personal income tax on employment income up to a monthly cap (HUF 715,765 in 2026); the 18.5% social security contribution still applies. It makes young hires noticeably cheaper on a net basis. Source
Személyi kedvezmény Personal allowance (disability)
személyi kedvezmény
Despite its name, this is not a general personal allowance: it reduces income tax only for people with a severe disability or long-term illness. Most employees therefore pay 15% from the first forint. Source
SZJA Personal income tax
személyi jövedelemadó
A flat 15% tax on gross employment income in 2026. Employee contributions are not deducted first and there is no general personal allowance, so the tax is simply 15% of gross pay unless a family or age-based allowance applies. Source
Social security and pensions
Rehabilitációs hozzájárulás Rehabilitation contribution
rehabilitációs hozzájárulás
A levy on employers with 25 or more staff that employ fewer people with reduced working capacity than the statutory quota. It is calculated per missing person and paid to NAV. Source
Szocho Social contribution tax
szociális hozzájárulási adó
The employer's payroll tax that funds social security: 13% of gross pay, uncapped for employment income, in 2026. It is the employer's only general on-cost; the separate vocational training contribution was abolished in 2022. Source
TB járulék Social security contribution
társadalombiztosítási járulék
The employee's single social security contribution, covering pension, health and unemployment benefits: 18.5% of gross pay with no ceiling in 2026. It is not deductible for income tax. Source
Pay and payroll
Szabadság Annual leave
szabadság (alapszabadság és pótszabadság)
20 working days of basic leave plus extra days by age, from +1 at 25 up to +10 from age 45, so a 45-year-old hire is entitled to 30 days. Parents of children under 16 get further days. Source
Távolléti díj Absence pay
távolléti díj
The statutory pay rate used when an employee is paid for time not worked, such as annual leave and the released part of a notice period, and as the basis for severance. It is base pay plus regular supplements and is set out in the Labour Code. Source
Employment law
Felmondási idő Notice period
felmondási idő
Employer notice is 30 days, extended by service: +5 days after 3 years, +15 after 5, +20 after 8, +25 after 10, +30 after 15, +40 after 18 and +60 after 20 years. The employee must be released from work for at least half of it. An employee resigning gives 30 days; contracts may extend notice to 6 months. Source
Mt. Labour Code (Act I of 2012)
a munka törvénykönyve
Hungary's Labour Code, cited as Mt. in contracts and payslips. It allows dismissal only for a genuine reason related to behaviour, ability or operations, stated in the notice; unlawful dismissal can cost up to 12 months' pay in compensation. Source
Próbaidő Probationary period
próbaidő
Up to 3 months, or up to 6 months under a collective agreement. Either side may end the employment with immediate effect during probation. Source
Végkielégítés Severance pay
végkielégítés
Due when the employer terminates (other than for conduct or non-health capability reasons) after at least 3 years: 1 month's absence pay, 2 months after 5 years, 3 after 10, 4 after 15, 5 after 20 and 6 after 25 years, plus 3 more months within 5 years of pension age. Source
Agencies and institutions
For Japan, see the Japan HR Glossary.