As economic globalization advances, more and more companies are choosing to hire employees overseas to meet the needs of their business operations. Pay issues are an extremely important aspect of the overseas employment process. This article will introduce knowledge about pay cycles in Hungary for foreign employment.
1. Pay Structure in Hungary
The pay structure in Hungary includes basic pay and allowances. The basic pay is determined based on factors such as the employee's position, work experience, skills, etc. Allowances are determined based on factors such as the employee's working environment and working conditions. Hungary's minimum wage standard is 1400 forints (approximately 4.5 euros) per hour, while there is no clear standard for the maximum wage.
2. Pay Methods in Hungary
In Hungary, companies can choose to pay salaries monthly or weekly. Most companies choose monthly salaries, with the specific payment date usually being the last working day of the month or the first working day of the month. Companies can also choose to fully settle an employee's total compensation upon departure.
3. Social Insurance in Hungary
In Hungary, companies need to pay social insurance premiums for employees. Specifically:
- Pension insurance: jointly paid by employer and employee at 14% and 10% respectively.
- Medical insurance: jointly paid by employer and employee at 7% and 3% respectively.
- Unemployment insurance: paid by employer at 1.5%.
- Work injury insurance: paid by employer at rates varying by industry.
4. Personal Income Tax in Hungary
In Hungary, personal income tax is determined based on the employee's income level. The specific tax rates are:
- Income below HUF 5,000,000 per year: 15% tax rate
- Income between HUF 5,000,000 to HUF12,000,000 per year: 20% tax rate
- Income above HUF 12,000,000 per year: 30%tax rate
In addition to social insurance and personal income tax, companies in Hungary also need to pay other taxes for employees, including:
- Health fund: paid by employer at 7% of the employee's basic pay.
- Education fund: paid by employer at 1.5% of the employee's basic pay.
- Union dues: paid by employer at rates varying by industry.
In summary, understanding a country's compensation policies and pay cycles is extremely important for overseas employment. I hope this article is helpful.