- About Hungary
- Working conditions
- Sectors and companies that are recruiting
- Applying for a job
- Major recruitment pointers
- Recruitment Resources and networks
1. About Hungary
Hungary has made the transition from a centrally planned to a market economy, with a per capita income nearly two-thirds that of the EU-25 average. The private sector accounts for more than 80% of GDP. Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion. The government’s austerity measures, imposed since late 2006, have reduced the budget deficit from over 9% of GDP in 2006 to 3.2% in 2010, with a target of less than 3% in 2011. Hungary’s impending inability to service its short-term debt – brought on by the global financial crisis in late 2008 – led Budapest to obtain an IMF/EU/World Bank-arranged financial assistance package worth over $25 billion. The global economic downturn, declining exports, and low domestic consumption and fixed asset accumulation, dampened by government austerity measures, resulted in an economic contraction of 6.3% in 2009. In 2010 the new government implemented a number of changes including cutting business and personal income taxes, but imposed “crisis taxes” on financial institutions, energy and telecom companies, and retailers. The economy rebounded in 2010 with a big boost from exports, especially to Germany, and growth of more than 2.5% is expected in 2011.
Population: 9.9 million
GDP per inhabitant (2010): USD 18.800,-
Unemployment rate (09/10): 11.2%
2. Working conditions
Hungary has quite a traditional working environment. Labour regulations meant that the interests and rights of the employee are usually quite well protected. Employment at multinational companies in Hungary will mean conditions similar to those in Western Europe and North America. However, smaller companies may offer various levels of conditions depending on their industry and financial capabilities.
A normal working week consists of 40 hours. Overtime is not paid by every company and how this is treated will depend on the type of position, industry and prior agreement with your employer. The standard number of days of annual leave is 21. The amount of days of holiday will increase according to your age – i.e. the older you are the more days of holiday you get. Salaries depend on the position and the language knowledge: In administrative positions the initial gross salary is 200,000 – 220,000 HUF/month, it is 230,000 in the financial section and it is 300,000 in the IT sector.
Legal working hours : 40.0 hrs / week
Length of trial / notice period: Length of trial: usually 3 months, notice period: min. 30 days, depending on the period of employment.
Employment formalities: Work contracts are based on the Hungarian Labour Law and signed for definite and indefinite period of time. Particular management contracts are applied to top managers.
3. Sectors that are recruiting
Retail, Services, Telecom, Finance, FMCG, Machinery, Pharma.
4. Applying for a job
Application documents: Resume in Hungarian and English or sometimes in other foreign languages. Short and structured CVs are required. Motivation letters are not required; reference letters are not usual.
Advice regarding the CV: Perspicuous, structured, to-the-point CVs with maximum 2 pages. Personal data (DOB, marital status, location etc.) are required.
5. Major recruitment pointers
Business Etiquette/knowing how to behave during interviews: Shake hands if given by the recruiter, pay attention to your counterpart, be structured, be coherent, give figures to demonstrate what you achieved, show interest, enthusiasm and flexibility.
Languages you must be able to speak: Hungarian, English; German is an advantage.
Flagship training:Budapest Corvinus University, Budapest University of Technical Sciences, CEU, ELTE
Compensation&Benefits / Taxes: Fixed salary connected to educational background and experience. Bonuses linked to the position. Company car, laptop, mobile, insurance. Vacation period: between 20-30 working days, depending on the age of the employee. Taxes are paid each year apart from salary; rates are linked to remuneration level, between 18 to 36%.
6. Recruitment resources and networks
Where to network:
Recruitment agencies, jobboard databases, ads in newspapers, Internet networks.