HUNGARY | Internship: At Work | Work conditions
Small and medium sized companies are typical for the Hungarian economy; about 90% of the Hungarian companies are SMEs. On the other hand, international companies like Audi, Bosch, Nestlé, Michelin and others have extensive plants in Hungary. Budapest and the surrounding area is the center of economic life, where wages are the highest and unemployment the lowest. The Danube river divides the country not only geographically but also economically into two parts: the eastern part is poorer than the western part.
Normally, there are 40 hours of work per week in Hungary. The company decides about the start and the end of the working day; usually, a working day starts between 8-9 a.m. and ends between 4-5 p.m., with about one hour’s break for lunch at midday. Many companies have adopted flexitime, but it also depends on the profile of the company.
Working part-time a day is very rare, as the employers prefer full-time employees. Punctuality is a very important issue to be considered.
Working permission
Foreign non-EU citizens can only work in Hungary if they have work permits. There are only some exemptions to this regulation (e.g. EEA countries). It is always the employer that has to apply for the employees' working permission.
Wages
Foreigners employed in Hungary are treated the same as Hungarian employees. Employers are obliged to deduct taxes and social service contributions and deliver them to the tax authorities, the Social Insurance Company and health insurance companies. Personal income is charged at two tax rates: till the yearly amount of 1,700,000 HUF (about 6,800 EUR) income is taxed at 18%, while above this amount the tax rate is 36%. There is a possibility to obtain tax credits, which can be set-off through the year, or can be refunded at the end of the year. Beside the tax liabilities, social and health insurance contributions (about 15-16%) are also deducted. This entitles the employee to use the health care system at no additional cost.