Employees of Hungarian companies may apply for an unemployment benefit, or officially a jobseeker’s allowance after the employment relationship is terminated. This way they can sustain themselves while they are looking for a job. However, this benefit is available only if the employee is allowed to stay in Hungary.
Unemployment benefit in Hungary
When an employee of a Hungarian business is terminated, the government offers an aid to let workers sustain themselves while they are looking for a new job. This is not affected by which party initiated the termination (whether the employee quit or was fired).
Colloquially, this aid is called the unemployment benefit (“munkanélküli segély”), but in Hungary, the official name is jobseeker’s allowance (“álláskeresési járadék”). It is not to be confused with the jobseeker’s aid (“álláskeresési segély”), which is an additional allowance aimed at jobseekers close to retirement age.
Who is eligible for the jobseeker’s allowance?
Hungarian workers are eligible for the jobseeker’s allowance if they were employed for at least 360 days over the last 3 years. Foreign workers are eligible only if they have a permit that allows them to stay in Hungary to receive an unemployment benefit.
Since most work-related residence permits are tied to the job and expect holders to leave Hungary once their job is terminated, workers will be able to receive the benefit only if they are:
- EU / EEA nationals
- Third country nationals with permanent residency (National Residence Card, EU Residence Card, Interim Residence Card)
- Refugees or beneficiaries of subsidiary protection
Employers’ tasks related to the unemployment benefit
Since unemployment benefits are paid by the Hungarian state, the employer has very little to do with them. The employer’s only task is to provide the exit documents which are officially required anyway, and which the worker will need to submit to the Labor Department. If you are an employer and your accounting and payroll services are with a provider like Helpers, our team will take care of this for you.
The rest of the article is intended to give employees a better picture about what to expect.
What to expect from your unemployment benefits?
You will be eligible for the jobseeker’s allowance if you had an employment relationship for at least 360 days over the preceding 3 years. This could be either full-time or part-time employment.
You can receive the jobseeker’s allowance for at most 90 days. Your eligibility period will be calculated based on how much you worked over the last 3 years. For every 10 days spent in employment, you get to receive 1 day on benefits.
The sum you receive will depend on your previous salary. More precisely, the basis of your jobseeker’s allowance is your average gross salary over the last 4 quarters. (In fact, it is the average labor market contribution base, but this contribution was integrated into the social security contribution, and the basis of that is typically the gross salary.) Your jobseeker’s allowance will be 60% of the above-mentioned average, but it cannot be higher than the current minimum wage, which is HUF 290,800 / month in 2025.
The jobseeker’s allowance is calculated on a daily basis. It is paid just like a salary, by the 10th day of the month following the relevant month.
Taxes on the jobseeker’s allowance
The jobseeker’s allowance is taxable income. This means that the above is a gross amount, and you will need to pay taxes on it.
Personal income tax in Hungary is 15%. If you were eligible for any personal income tax benefits while you were receiving a salary, the same benefits can be applied to your jobseeker’s allowance. Make sure to indicate this during the application.
Social security contribution in Hungary is 18.5%. It covers the former health insurance and labor market contribution (8.5%) and the pension contribution (10%). Whether you need to pay any of these depends on various factors.
Healthcare while unemployed
While you are receiving the jobseeker’s allowance, you are eligible for government provided healthcare services, same as when you were employed.
If you haven’t started a new job by the time your allowance ends, you can start paying the social security contribution on your own to remain insured. It will cost HUF 390 / day, or HUF 11,800 / month.
Helpers at your service
Here at Helpers we aim to assist every foreigner living, working, or doing business in Hungary. While we normally work with employers, we are doing our best to keep both employers and employees informed about everything related to the employment of foreigners in Hungary, including residency application, payroll administration and HR support.
Should you need any help, feel free to reach out to us. We will be happy to help.
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