As globalization accelerates, more companies are choosing to expand their business overseas. Hiring local employees is an essential step in this process. This article outlines the advantages and key considerations for overseas employers when hiring Hungarian staff.


1. Low Labor Costs

Labor costs in Hungary are relatively lower compared to Western Europe and North America. This is one reason many companies choose to set up offices or factories in Hungary. The Hungarian government also provides various tax incentives to further reduce costs for businesses.

2. Well-Educated Workforce

Hungary has a top-tier education system with prestigious higher education institutions in Europe. As a result, the Hungarian workforce is relatively highly-skilled and capable of handling complex jobs.

3. Multilingual Abilities

Hungary is a multilingual country where residents commonly speak English, German, French, Italian and more. This facilitates overseas market expansion for companies.

4. Strategic Location

Located in Central Europe, Hungary is a gateway country to Eastern Europe. Its advantageous geographic location provides easy access to European markets.

Key Considerations

1. Labor Laws and Regulations

Before hiring Hungarian employees, companies must understand Hungary's labor laws. The regulations are relatively strict, requiring compliance to avoid fines and legal consequences.

2. Cultural Differences

Hungarian culture differs from Western countries. When hiring, companies need to recognize these differences and respect local customs to prevent cultural conflicts.

3. Language Barriers

While multilingual, not all Hungarians are fluent in English. Companies should anticipate potential communication issues due to language barriers and take appropriate measures.

4. Tax Policies

Although Hungary provides various tax incentives, policies may change over time. Companies should stay updated on the latest regulations to make appropriate adjustments.

Case Study:

A US auto parts manufacturer opened a factory in Hungary and hired local staff. By fully understanding tax policies and labor laws, they effectively reduced costs and ensured compliance. With training and communication, they also overcame cultural and language barriers, enabling smooth operations.