Below we provide answers to some frequently asked questions raised by businesses on the current state of emergency in Hungary. We discuss also the new measures introduced by the Hungarian Government in March 2020 in order to support the economy.
According to the new measures introduced by the Government, employers can unilaterally change the work schedule of employees and order home office and distance working, disregarding the previous limitations of the Labor Code. Normally, employers must notify the employee at least 96 hours (4 full days) in advance before modifying the work schedule.
Also, during the present sate of emergency the employer has the right to check the health of the employee. These measures will last until 30 days after the withdrawal of the state of emergency.
No. Unilateral holiday arrangements must be announced 15 days in advance. The employer and the employee may however agree on the employee taking paid or unpaid holidays during any standstill. Otherwise, the employer can instruct the employee to stay at home, but he or she will be entitled to his or her base salary for the standstill.
If the employee becomes ill, he or she is entitled to 70% of his or her salary as sick pay, to be paid entirely by the employer for 15 working days a year. From the 16th day a sick benefit will be disbursed by the state insurance, with a 1/3 contribution of the employer.
If the employee contracts the virus at the workplace, then the state insurance will pay a 100% sick benefit to the employee that will have to be reimbursed by the employer to the state.
Yes. If the employee becomes ill, the employer may be liable for damages in Hungary if the infection is acquired in connection with the employment, i.e. at the workplace or during a secondment, at a business event, or otherwise in connection with the performance of the employee’s duties.
In the event of an increased risk of contamination - for example, if the employer orders a secondment to a country strongly effected by the virus like Italy, or the possibility of contamination increases at the workplace so that it can directly and seriously endanger the health of the employee, the employee may legitimately refuse to appear at the workplace.
However, the employee must remain available and wait for further instructions from the employer. In such a case, the employee will be entitled to pay despite the refusal to work and the employer may not take any adverse action against him according to Hungarian Law.
No. If the Hungarian health authorities order an epidemiological quarantine and as a result, workers are unable to attend the workplace, then this event is beyond the employer's control and workers shall not be remunerated for this period. In such cases employees are entitled to sick benefit based on social security rules to be paid by the state insurance, even if they are not ill. This rule however does not apply in cases where the quarantine is voluntarily entered into by the employer.
During an epidemic, the employee as a private person must refrain from any activity that may be detrimental to the employer or to the health of other employees. The employer may request information from the employee about facts which are relevant for the working relationship, such as the employee’s medical condition, activity outside the workplace, travel abroad, also pertaining to family members. Such personal data must be managed by the employer in accordance with the requirements of GDPR, and is to be deleted after the end of the pandemic.
We are dedicated to adding value to our clients’ businesses through understanding their objectives and supporting them in achieving their goals. With over 20 years of international experience and a strong focus on digitalization we provide full scale professional services at a single point of contact.
In our Case Studies we have described some examples of how we work for our clients and what benefits we have achieved for them.
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Businesses looking to permanently outsource their accounting and reporting functions can benefit from our full-scale, fully digitalized accounting solutions, including a wide range of professional services.
Our outsourced accounting services are built on three pillars:
Depending on your preference, we will maintain your accounts in HUF or any other functional currency such as EUR, USD, or CHF. We also manage all interconnected tasks arising from foreign currency accounting.
Our comprehensive accounting services include filing financial statements and registering your firm in the electronic systems of the Hungarian tax administration. We also prepare and submit your tax returns electronically.
If your company requires a tailored management information system in Hungary, we will adapt our services to align with your preferred accounting system, policies, and data format.
Our fully digital accounting platform streamlines financial management for businesses of all sizes. With a cloud-based system, our clients can gain real-time access to their accounting data, ensuring accuracy, transparency, and efficiency. The integration of tax compliance features also ensures that businesses remain up to date with local regulations, avoiding costly penalties.
We will generate detailed financial reports tailored to our clients’ needs, a further useful function of our fully digital accounting system. These reports provide valuable insights into cash flow, profitability, and the overall financial status, enabling better decision-making.
Another key advantage is the flexibility of digital collaboration between our clients and their accountants. A centralized platform allows for efficient document sharing and direct communication with our financial professionals. This enhances workflow efficiency and ensures that accounting tasks are completed accurately and on time. Whether managing payroll, tax filings, or financial planning, our clients benefit from a reliable, secure, and scalable accounting solution tailored to their specific needs.
We understand the importance of a smooth and efficient accounting process, also in cases when you wish your financial data to be integrated in your company’s own ERP-system. To ensure that financial data is seamlessly integrated into your ERP we handle the direct upload of your accounting data, eliminating errors and saving valuable time.
This automated process ensures that your company always has access to up-to-date financial records, improving accuracy and operational efficiency. Quarterly, monthly or weekly financial reporting enhances decision-making by providing your management team with precise, reliable insights.
We tailor our accounting services to our clients’ needs—whether for permanent outsourcing or for temporary support until an in-house accounting department is established.
We provide expert accounting advice, especially valuable in the early stages of business operations. Our team also advises on implementation and compatibility related to IFRS, US-GAAP, and Hungarian Accounting Standards.
While most companies in Hungary maintain accounts in Hungarian Forints (HUF), this may not be ideal for internationally active businesses. We guide our clients through the process of transitioning their accounting system to a preferred functional currency, such as EUR, USD, or CHF.
Once implemented, we support your accounting team in maintaining the accounts, compiling financial statements, and managing all related tasks in the chosen currency.
We offer payroll services for companies that require complete confidentiality of salaries or find it impractical to employ an in-house payroll team. This is particularly beneficial for:
Our payroll experts meet all legal requirements for handling payroll for companies with over 100 employees.
We handle full-scale payroll administration, allowing your company to focus on core business operations. Our services include:
Most clients who outsource their accounting with us also choose to use our payroll services.
For an estimate of employer wage costs, you can use our online salary calculator.
International businesses that do not wish to maintain a physical office in Hungary can outsource their registered office to us.
We can:
A registered office is a supplementary service available to clients outsourcing their accounting and reporting with us.
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