Maternity leave is a form of unpaid leave in Hungary during which mothers can apply for allowances from the state. New mothers can spend at least 6 weeks with their babies, during which you cannot terminate their employment relationship. This is true even for third-country national employees, and it is not supposed to affect existing work permits either.
What is maternity leave in Hungary?
Maternity leave has a narrow and a broad sense. In the narrow sense, maternity leave is an unpaid leave right before and after the child is born. It must be at least 6 weeks long but can take up to 24 weeks. Maternity leave can start 4 weeks before the projected birth date of the baby, in which case the mother can go back to work 2 weeks after the child is born. However, mothers in Hungary usually take advantage of the full 24 weeks.
In the broad sense, maternity leave may include an additional unpaid leave which may last until the child turns 3 years old. In Hungary, it is considered normal for women to take advantage of this option and spend these formative years away from work, with their children.
Please note: going on maternity leave cannot be grounds for the termination of an employee. The employment relationship cannot be terminated during maternity leave, however long it is.
Maternity leave: paid or unpaid?
From the employer’s point of view, maternity leave is an unpaid leave. Mothers can apply for various types of allowances throughout the entire leave if they have been insured in Hungary for at least a year beforehand (more precisely, for at least 365 days within the last 2 years). Application is normally done with the help of the employer’s HR or payroll specialist, but the allowances will be paid by the Hungarian State Treasury.
- Maternity allowance: one-time allowance after the baby is born
- CSED: monthly allowance during the 24 weeks of the maternity leave
- GYED: monthly allowance after the maternity leave until the child turns 2
- GYES: monthly allowance after GYED until the child turns 3
- GYET: monthly allowance for families raising 3 children, until the youngest turns 8
The basis of these allowances is the mother’s absence pay (which is practically their gross salary), but the sum decreases gradually. You can learn more about this here.
In specific cases, these allowances may be available to fathers too, meaning that the father will stay at home with the child instead of the mother. Whether a father or a mother decides to stay at home with a baby, they will not be able to participate in the operation of your Hungarian business for a prolonged time, you will need to find a replacement, which will incur costs for recruitment, training, and possibly for residency application if you recruit from abroad.
Additional leaves for mothers and fathers
Parents working at Hungarian companies are eligible for additional paid time off in connection to raising children. These are mostly paid leaves, but the employees receive different portions of their absence pay.
- Additions to the annual leave: 2, 4, or 7 days added to the annual PTO of parents of 1, 2, or more children under 16, compensated at 100% of their absence pay.
- Paternity leave: given to a father within 4 months after their child is born. It entails 5 days paid at 100% of their absence pay, and an additional 5 days at 40%.
- Parental leave: 44 days available until the child turns 3 years old, paid at 10% of the parent’s absence pay.
- Parental sick leave: parents of children under 12 may go on sick leave together with their children. The number of available days gradually decreases as the child gets older.
You can read more about this in our articles about paid time off in Hungary and sick leave in Hungary.
Additional pay for parents
While you as an employer are not expected to pay more to parents, their monthly income may increase as they become eligible for various child benefits. Your HR or payroll specialist will normally be expected to file for these benefits on behalf of your employee.
- Tax exemption of mothers: personal income tax exemption to mothers of 3 or more, to mothers of 2 or more under 40, and mothers under 30
- Family tax benefit: a tax base reduction that increases the monthly net salary of the parent (not available to most third-country nationals)
- Family allowance: a monthly allowance from birth until the child finishes school or until they turn 20, paid by the Hungarian State Treasury.
Maternity leave for foreign employees
Maternity leave is available to employees regardless their nationality and their residency status. Since the employment relationship will remain intact, employees should be able to extend their work permit without problems, so they will be able to continue working for your Hungarian business once they are back from the leave.
Helpers Hungary at your service
Helpers Hungary has 20 years of experience providing business and personal services to international clients in Hungary. This includes not only company formation but also all relevant services, from accounting and payroll through residency application to HR compliance. If you need help in Hungary, we are confident we can provide tailored solutions for your business.
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