Legal framework of simplified employment in Hungary

Simplified employment is one of the most popular atypical form of employment in Hungary primarily as a result of its streamlined administrative requirements and more favourable public levies.

Simplified employment in Hungary is basically regulated by two pieces of legislation: Act I of 2012 (Hungarian Labour Code) typically contains the most important labour law restrictions and specifies which basic labour law rules may be deviated from in the case of simplified employment and casual employment. Act LXXV of 2010 on Simplified Employment regulates administrative details.

Two forms of simplified employment are distinguished: seasonal work (agricultural or tourist seasonal work) and casual employment, including film extras.

Unchanged provisions: on casual employment

A casual employment arrangement may be entered into between the same parties for a maximum of five consecutive calendar days up to a total of 15 calendar days within a calendar month and not more than 90 calendar days within a calendar year.

A film extra continues to be defined as a natural person whose occupation is classified under FEOR code 3711, provided their role is auxiliary and exchangeable within the film production. The daily net income from this activity can not exceed 12% of the minimum wage valid on the first day of the month, rounded to HUF 100, i.e. HUF 34,900 as from 1 January 2025.

In the case of casual employment under a simplified employment relationship, the number of employees employed on a calendar day may not exceed:

• 1 person, where the employer has no full-time employees under the Hungarian Labour Code,
• 2 persons, where the employer employs between 1 and 5 employees,
• 4 persons, where the employer employs between 6 and 20 employees,
• 20% of the total workforce, where the employer employs more than 20 employees.

Unchanged reporting obligations and wage conditions

The simplified employment relationship is established by verbal agreement between the parties, upon notification by the employer. However, it is recommended that concluding a written contract by using a template available on the NAV website.

Based on the employment relationship established for simplified employment, the basic salary or performance-based wage shall be at least 85% of the statutory minimum wage, or 87% in the case of a guaranteed minimum wage, in accordance with the specified conditions. For film extras, the daily net wage can not exceed HUF 34,900 from 1 January 2025.

The simplified legal relationship has to be reported electronically, by telephone or via a mobile application prior to commencement of work. Notifications cannot be amended or withdrawn retrospectively. Amendments or withdrawals are permitted within two hours of submission, or until 9 a.m. on the day of notification if employment commences the following day or lasts more than one day.

Changes effective since February 1: public levies

From 1 February 2025, public levies payable by employers have changed. The new amount of the public levy calculation base had to be applied for the first time after 1 February 2025, i.e. for legal relationships established on or after 2 February 2025.

The new public tax payable for each calendar day of employment per employee is as follows:

• for seasonal work in agriculture and tourism, 0.75% of the minimum wage valid on the first day of the month, i.e. HUF 2,200
• for casual employment, 1.5% of the minimum wage valid on the first day of the month, i.e. HUF 4,400
• for casual employment as a film extra, 3% of the minimum wage valid on the first day of the month, i.e. HUF 8,700.

Forthcoming changes: new rules on time limits

Unlike casual employment, the time limit for seasonal and casual employment combined is a maximum of 120 days within a calendar year. This time limit has not changed from the previous one and will not change. However, from 1 July 2025, a significant change will come into effect regarding the calculation of the 120 days. While currently a worker cannot work under simplified employment scheme for more than 120 days in a calendar year for the same employer, from 1 July, this restriction will apply to all employers. This means that if someone works for several companies under simplified employment in Hungary, the total number of days spent in simplified employment at all his/her employers cannot exceed 120 days per year.

This restriction was supplemented by a legislative amendment promulgated on 24 April 2025. The amendment supports people working in agriculture by allowing them to extend the 120-day limit by an additional 90 days, subject to higher public levies. This amendment will take effect from 1 January 2026, and does not apply to 2025.

To monitor the time limit, the Hungarian tax authority will introduce an electronic query system enabling employers to verify an individual’s remaining simplified employment quota prior to engagement.

The new time limit rule represents a significant change, as until now the number of days of simplified employment was limited only on the employer’s side. The system, which will come into force on 1 July, will further restrict the possibility of simplified employment in Hungary: employers will have to take the time to check the employee’s quota, as the tax authority may reject the registration if it exceeds 120 days.

With decades of experience supporting clients across diverse sectors, the payroll experts at WTS Klient Hungary offer tailored advice to help employers comply with legal requirements and to optimise employment structures. Feel free to contact us!

This article provides general information and does not constitute advice.

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