Is your Hungarian company in need of some extra work force? Do you have recurring or seasonal tasks that would not warrant for a full-time employee? Consider employing students as a flexible and cost-effective solution.
Students in the work force
In Hungary, students are allowed to work from the age of 16 (or from 15 with parental permission). Many students work seasonal jobs during the summer break, or take on various ad-hoc tasks around their timetables. They are flexible and teachable. Moreover, you can take advantage of various tax benefits while employing students.
Employing students through organizations
Most students do not work directly for their actual employers but through student organizations. This means you are in contract not with the student but with an organization who takes care of recruitment and payroll, and you receive a monthly invoice based on the numbers of hours the student spent working for your Hungarian company.
Of course, you can also find students to work for your company on your own. Once you have agreed with them, they can sign up with the student organization you are partnering with, who will take care of the administration for you. One student is allowed to sign up with multiple student organizations (for a registration fee), so making a student sign up with a specific organization does not cause them any serious disadvantage – they will have to pay for one more registration, which is normally below EUR 5.
Since the students will not be your actual employees, you do not have to worry about the probation or notice periods. You can have the students working for your company exactly as much as your company needs their labor. Obviously, it makes sense to agree about the schedules with your student employees in advance if you want them to come back next time you need them.
Foreign students at your Hungarian company
Foreign students can bring additional value to your company, for example through language skills or familiarity with some specialized skills. While their Hungarian residency is tied to their studies, they are allowed to work, although there is a limit to the number of their working time (whereas Hungarian students are allowed to work as much as they want):
- During study period: at most 30 hours / week.
- Outside study period (so during exam periods and the summer break): at most 90 days or 66 working days / year.
Just like Hungarian students, most foreign students work through student organizations, which will spare your company time and expenses.
Tax benefits for employing students
Students working through student organizations are not required to pay the 18.5% social security tax, and you as the employer will not need to pay the 13% social contributions tax. Considering that tax-payers under the age of 25 do not pay the 15% personal income tax either, you can offer students a competitive salary without burdening your company.
The payment made to the student organization must be at least 117.8% of the student’s gross salary, which cannot be lower than the hourly minimum wage.
Students in your organization
While students can flexibly complement available work force, you will also need some flexibility while employing students. Whether they are in high-school or in college, they will have more or less fixed timetables, which they will probably handle as a priority compared to your company. Make sure you can offer them working hours they can manage beside their studies.
At the same time, employing students is ideal for training future full-time employees. While they are working for you, both you and the students can assess whether a long-time collaboration would be beneficial for you. If the answer is yes, once they have finished their studies, you can hire an employee who is already familiar with your activities and procedures.
Comprehensive business assistance from the Helpers Team
Employing students provides a cost-effective and flexible solution to irregular, seasonal, and intermittent labor demand at your Hungarian company. Partnering with a student organization for this purpose makes the entire procedure especially straightforward and worry-free.
The Helpers Team provides assistance not only with company setup, but also various other procedures that let your Hungarian business get into gear, such as accountancy or HR support. This way you can focus on your main activity and on making your business a success.