Directives 96/71/EC, 2014/67/EU and 2018/957/EU, which regulate the posting of workers in the EU, have been transposed in Hungary in the following legislation:
- Act I of 2012 on the Labour Code;
- Act CXXXV of 2020;
- Government Decree No. 115/2021. (III. 10) and
- Government Decree 703/2021. (XII. 15).
For more information on EU legislation on the posting of workers, take a look at our complete guide on EU Posted Workers Directives.
Preliminary requirements for posting workers to Hungary
Companies posting their employees to Hungary are required to submit a posting declaration to the competetent labour authorities. The posting declaration must be submitted via the institutional website, at the latest before the beginning of the work in Hungary.
The data contained in the posting declaration include:
- Data on the service provider (company name, address, etc.);
- Data concerning the nature of the activity carried out on Hungarian territory;
- Data concerning the posted workers;
- Data concerning the provision of services (duration of posting, place of work, etc.).
The posting company must also appoint a contact person to act as an intermediary or liaison with the authorities. This contact person must be available on Hungarian territory. The contact person’s details must be indicated in the relevant section of the declaration of posting.
Working and salary conditions applicable during posting in Hungary
Article 295 of Act I of 2012 on the Labour Code stipulates that employees who are temporarily posted by a foreign employer to Hungary are subject to certain minimum conditions, guaranteed by Hungarian labour law.
The provisions of the Labour Code that apply to postings in Hungary, as well as the minimum conditions applicable to such postings, concern working hours, breaks and the minimum wage.
Minimum standards for working hours are established on a EU level. For more information, read our guide on the EU Working Time Directive.
In Hungary, the minimum wage to be paid to employees employed in positions requiring a secondary school diploma or advanced vocational training or higher is set at €855.00/month.
However, these provisions only apply if they are more favourable to foreign workers.
For more information on employment legislation within the EU, take a look at our guide on EU labour law.
Social security in Hungary
Workers posted from an EU/EEA country are entitled to keep their social security contributions paid in their own country. For this purpose, the employer must request an A1 Certificate from the competent social security institution of the country of residence.
The A1 certificate proves that the employees continue to pay social security contributions in their home country. This document must be made available during and after the posting and at the request of the authorities.
Long-term assignments in Hungary
If the actual duration of the posting in Hungary exceeds 12 months, irrespective of the legislation applicable to the employment relationship, undertakings established in a Member State must guarantee posted workers all terms and conditions of employment applicable in Hungary, including:
- laws, regulations or administrative provisions, and/or
- collective agreements or arbitration agreements which have been declared universally applicable or which alternatively apply pursuant to Article 3(8) of Directive 96/71/EC.
Such working conditions add to the terms and condition referred to in Article 3(1) of Directive 96/71/EC.
If the assignment exceeds 12 months, the service provider must submit a reasoned notification to the competent authorities of the host country. After the 12/18 month period, all additional conditions in terms of employment apply to posted workers.
Storage of documents concerning the posting in Hungary
The regulations on keeping and making available documents necessary for posting workers are contained in subsection (3) of section 297 of Act I of 2012 on the Labour Code.
The posting company is required to keep the following documents:
- employment contracts (or other equivalent documents);
- time sheets and
- proof of payment of wages.
The documentation must be available throughout the duration of the posting on paper or in electronic format at the place where the work is carried out, and for a period of three years after the end of the posting at the employer’s registered office for verification purposes.
Penalties for non-compliance according national legislation
Pursuant to Section 19 of Government Decree 115/2021. (III.10.), the labour authority imposes a fine in the event of a breach of the regulations on record keeping. In this case, the amount of the fine is equal to the minimum wage multiplied by the number of posted workers.
In the case of failure to comply with the reporting obligation, Section 19 of Government Decree 115/2021. (III.10.) also provides for a fine, the amount of which is equal to the minimum wage (the number of posted workers is not decisive in this case).