Hiring workforce in Hungary
Any foreign or local investor interested in hiring workforce in Hungary should know that the labor and employment sector in this country is regulated by Act I of 2012 (Labor Law). This act contains all the information related to employment in Hungary.
If you are interested in opening a company in Hungary, hiring the most suitable persons for your business profile represents a very important phase. Fortunately, the Hungarian workforce is highly skilled and educated.
The characteristics of the Hungarian labor force
Hungary represents a good destination in terms of foreign investments, offering several advantages for businessmen interested in starting businesses here. One of the advantages of investing in this country is represented by the highly efficient workforce. Hungary offers well trained labor force, especially in the following sectors:
- – engineering;
- – IT;
- – pharmaceutical;
- – economics;
- – mathematics;
- – physics;
- – professional services.
Furthermore, around two-thirds of the Hungarian workforce has completed a secondary or vocational education. Also, the Hungarian labor force is highly competitive, due to the fact that the average wages in Hungary are approximately 60% lower than the average salaries in the European Union.
For more information about the workforce in Hungary, our Hungarian company formation specialists are at your disposal.
Legal assistance for managing workforce in Hungary
After hiring the most suitable persons for your company in Hungary, you will need to follow several laws and regulations in order to manage your employees. For example, every employee must have financial records of salaries, wages, bonuses and deductions (payroll). The process of payroll in Hungary is crucial for the companies, because payroll taxes considerably affect the net income of most enterprises.
Our team of company formation experts in Hungary can recommend you an experienced team of Hungarian accountants, who can provide you with several accounting services, including payroll.
Accountants in Hungary are also in charge with financial matters that derive from employment contracts. Thus, when you will hire employees for company, the accountants will handle all the legal matters related to this.
The salary in Hungary is paid on a monthly basis, so payroll procedures have to be completed for each month of the financial year. The employer is required to pay the social contribution tax, charged at a rate of 13%.